Snow biz setting high marks

“I think it’s great for everybody”

It’s a record-breaking year in the snow sports industry. I know it doesn’t feel that way as we transition from a mellow end-of-January into February, but the numbers are in. This past week, the Snowsports Industries America (SIA) trade show went off in Denver amidst reports of record sales across the industry.

According to an SIA report released January 27, “The snow sports market sold more than $1 billion worth of equipment apparel and accessories in December alone and reached $2.1 billion season-to-date. This is the first time in history snow sports sales have topped a billion dollars for sales in a single month.”
In addition, Colorado Ski Country USA is reporting a boost in skier visits for its 22 member resorts as well. Skier visits at CSCUSA resorts were up by 10 percent during the first period of the 2010-11 season, defined as opening day of the season (this year October 24) through December 31, 2010, compared to the same period of the prior year.
Part of the positive start to the season is due to La Niña conditions across the western region, where sales were up 25 percent in dollars sold, the highest of any region in the country. The upsloping trend is also due to the industry reaching equilibrium on the supply side, while demand is higher than in recent years. The market was so flooded for a couple years that new inventory was going to closeout prices right after Christmas, which made it difficult for retailers to maintain prices anywhere near MSRP. Because brands are producing less product now, the market has been cleaned out, and brands are selling out of inventory instead of dumping it at closeout prices.
Locally this trend has overall positive impacts across the amenity-driven economy. For example, skier visits are up over 2009 at the mountain, according to Crested Butte Mountain Resort, and local retailers are reporting a positive season to date and optimistic outlook for the 2011/12 season.
Owner of the Colorado Boarder Dave White says things are turning around for the better, now that the overstock bulge has constricted. “I think it took two solid years to swallow what was overproduced,” he says. “Something like 150-plus specialty snowboard shops went out of business. For this year the manufacturers produced way less, and the reorder stock is not available. I’m excited, we’ve cut the supply and we’re driving the demand back up—that is what we need.”
White adds, “I think it’s great for everybody. I ordered 30 percent less this year and kept my sales above last year’s dollar numbers. That’s a huge win.”
Colorado FreeSkier owner Gabe Martin says his business is having a breakout year as well. “Overall everyone feels like they’re pulling themselves out of the hole,” Martin says after a full run at the show. As for his business so far this season, “My December was way up, January was up, now I just got to focus on February. My December was banger, best ever by far.”
On the trends side of things, Martin says rocker is here to stay. Especially in Crested Butte. “If it’s not rocker and 100mm underfoot it’s not going to sell in the Butte,” says Martin.
PJ Hildebrandt, store manager at the Alpineer and Christy Sports, left the show with a sense of optimism as well. “The show was very positive. Our November and December were very strong, and trending into January we are looking really strong as well. Great snow is helping us. We’ll keep our fingers crossed that it snows again next year and we all look like geniuses again.”
CS Irwin’s Kyra Martin looks forward to the SIA Show every year. She says the word is out that Irwin is back with a vengeance, and the vibe at the show was upbeat to say the least.
“It’s the heart of everyone that works in ski, and the vibe is so cool,” she says. “We all finally get to come together one time a year. They’re my favorite three days of the year.”
Hopefully this is all a sign of good things to come for the rest of the season, and the momentum carries into 2011/12. Bring on President’s Weekend and Spring Break.