Consulting firm NPD has released its latest figures for the first quarter of 2022 of the U.S. footwear market. Both the footwear industry’s sales and the revenue declined year-over-year in Q1. Sales were down 3 percent, unit sales were down 12 percent, while average prices were up 11 percent. Compared to 2019, quarterly revenue was 3 percent higher, and unit sales were going down by 10 percent. NPD sees several factors as relevant to this decline: In addition to the fragile recovery from the Covid-19 crisis and the expiring stimulus programs, inflation fears may be driving the weakness in the footwear industry this year.
However, NPD also sees a more significant trend at play: sales of some leading footwear brands have even underperformed the rest of the market. As emerging brands and new models and technologies enter the market, NPD believes in a possible seismic shift in the leisure and sports shoe industry.
Overall, sports leisure is the largest category in the U.S. footwear industry. According to NPD, sales in this category fell in the mid-teens in the first quarter, with unit sales declining in the high teens and average selling prices rising in the mid-single digits. Within this category, retro-style footwear sales declined due to weakness at Nike, Jordan and Adidas. Athletic footwear sales fell 20 percent, and skate footwear sales declined in the low single digits. Nike athleisure footwear sales fell about 25 percent, while Jordan and Adidas saw declines in the mid-teens. New Balance grew about 25 percent, while Puma, Skechers, Converse and Vans saw declines in this category.
Performance footwear outperformed the overall footwear market in Q1. While revenue was up slightly, the average price also declined slightly, a major slowdown from the 2021 rate. Unit sales increased in the low single-digits.
Running shoes captured the largest portion of performance footwear sales and experienced a slight revenue decline compared to Q1 2021. Walking, soccer/football, and training shoes all had solid growth for the quarter in the U.S. Basketball continued its freefall, with weakness from Nike, the market share leader.
Nike performance footwear declined about 25 percent, with weakness in virtually every category. Adidas performance sales gained in the mid-teens. Skechers improved by more than a third. Brooks slightly declined, while Under Armour grew in the high single digits. New Balance declined about 20 percent, and Asics fell by mid-single digits. Hoka One One, On, Puma, and Saucony all had good growth for the quarter.
Outdoor footwear revenue declined by mid-single digits, unit sales declined by high single digits, and average selling price grew by mid-single digits. Revenue from hiking, trekking, and mountaineering shoes declined by low single digits, while boots, including hunting and fishing, dropped by mid-single digits. UGG outdoor footwear revenue declined by mid-single digits, while Columbia was down slightly, and Merrell fell by mid-teen digits. On the other hand, Timberland, Keen, Skechers, and private label brands had nice growth, according to the report. Sneaker silhouettes accounted for almost 90 percent of the growth in the category, followed by shoes. Boots declined in the low single-digits but remained up in the teens versus 2019. Private-label sales collectively grew in the mid-single-digits, and Skechers and Wolverine both increased slightly. Reebok sales more than doubled, and Timberland Pro grew in the low teens.
NPD expects Q2 to bring improvement in sales on the fashion side as consumers return to pre-pandemic behavior. At the same time, interest in fitness and the outdoors will help drive the athletic business.
