US sporting goods imports decline sharply in Q1

The first quarter of this year witnessed a continued downturn in imports to the US of footwear, apparel, and equipment, marking a significant decline compared to the same period last year. According to the latest data from the ITC database, the declared customs value dropped by 33 percent to $3,687.1 million from $5,490.6 million in Q1 ’23. Sneaker imports experienced a 28 percent decline to $967.7 million from $1,345.1 million, falling below pre-pandemic levels. Meanwhile, apparel imports took a sharp nosedive, plunging 43 percent to $646.7 million from $1,134.8 million, exacerbated by weak winter apparel sales. Equipment imports also tumbled by 33 percent to $2,072.7 million from $3,010.6 million, with all categories experiencing double-digit declines except for exercise.

Potential problems linger

Management commentary on recent earnings calls indicates that industry inventories have improved after a year of clean-up efforts. However, this improvement often comes at the expense of product margins and profits, as companies remain cautious about committing to large orders due to lingering inflation and consumer pressure. Despite these challenges, consumption has remained better than expected, helping the US avoid a feared recession.

Issues in China, Vietnam on the rise

China saw a relatively better performance in Q1, with a 28 percent decline in overall imports. The country managed to pick up share in apparel and most hardgoods categories, although its share of US sneaker imports continued to decline. Vietnam, on the other hand, increased its share in both footwear and apparel, despite experiencing declines in dollar volumes. Lower average selling prices contributed to the drop in softgoods imports, with athletic footwear prices declining over 2 percent year over year and apparel prices contracting by 7 percent.

Overall, the first quarter of 2024 presented continued challenges for the sporting goods import market, with declines in key categories and ongoing pressures on margins and profits. Despite these headwinds, industry players remain cautiously optimistic about the future as they navigate through uncertain economic conditions.