June 5, 2002

McLEAN, Va. (June 5, 2002) — The final end of the season sales of winter sports products (August-March) for all stores (specialty and chain) were down 4.8 percent compared to the same period in 2001, according to the SnowSports Industries America (SIA) Retail Audit. In dollars, that translates to $2.1 billion in sales compared to $2.2 billion last season.

Specialty store numbers specifically were down 3.8 percent, which translates into $1.61 billion compared to $1.67 billion in 2001.

Jim Spring of Leisure Trends Group, the research firm that prepares the annual Retail Audit for SIA, said, “The mountains became a refuge from the density of the city and a place where people could reflect and find some spiritual and physical nourishment. Even though it didn’t snow, people came. Interest in snow sports and therefore sales, held up a lot better than previous seasons when the snow never fell.

The SIA Retail Audit tracks and reports sales in all snow sports product categories. This is the final report for specialty stores that examines sales through March 31, 2002, the end of the winter season. SIA is the not-for-profit industry trade group that represents manufacturers and distributors of snow sports products. Chain store information will be released separately.

All equipment (alpine, snowboard and Nordic) in specialty stores rose slightly at 0.7 percent to $664 million compared to $659 million in 2001 though units were down (2.1 percent). Alpine ski equipment was down 1.9 percent to $449.2 million as compared to $458.1 last year. Nordic equipment rose 4.2 percent to $26.8 million and snowboard equipment was up 7.0 percent to $187.7 million in sales. Sales for Nordic equipment in 2001 were $25.7 million while snowboard was $175.3 million.

Apparel and accessories both saw losses at 5.3 percent and 8.0 percent, respectively. Sales for apparel tracked at $451.5 million while accessories were $491.2 million. Last season sales for apparel were $476.9 million while accessories were $534.2 million.

Snowboards Equipment Made Gains in Specialty Shops

Alpine ski sales fell 13.6 percent to $159.8 million. As the season comes to an end, three categories of alpine skies remained fairly strong. These categories included Mid-fat, fat and twin-tip skis, with sales up 21.4 percent, 80.8 percent and 16.4 percent, respectively. This season Mid-fat skis outsold the second largest class, carvers, by a factor of 1.8 to 1.0. Fat skis grew by 81%; however, the numbers are low with only 5,000 pairs sold. All other classes of skis saw a decrease in double digits; carve skis (down 45.2 percent), ski boards (down 22.3 percent), junior skis (down 13.3 percent) and carry-over (down 16.7 percent). Slightly more than 52,000 ski systems were compared to about 16,000 last year. The average retail is $714 after aggressive late-season mark-downs. Because of the ski systems, alpine equipment sales were down only 1.9 percent in dollars.

Consider that all alpine skis without systems sold for an average retail of $314, less than half the price of systems.

Alpine boot sales were off slightly by 0.9 percent to $170.9 million. The average retail of alpine boots climbed 7.5 percent which kept dollars even with last season. Sport performance boots continue to dominate, advancing 16.7 percent in dollars, while adult recreation boots had a 53.1 percent gain. High performance boots were down 22.1 percent and in addition junior boots declined 20.4 percent.

Bindings are down compared to last year (5.7 percent) to $67.7 million. However, add in ski systems, and binding unit sales were consistent with last season. The Din 1-7 binding appears to be dead with slightly more than 1,500 units being sold. The only binding going strong this year was the DIN 12-14, up 13.1 percent. All other bindings saw declines.

Poles are down 16.9 percent in sales to $13.4 million. Maybe poles need a system? The largest declines in sales we seen in carry-over, down 64.1 percent.

Nordic skis climbed 18.0 percent to $10.9 million followed by boots (up 3.5 percent to $9.2 million). Both bindings and poles saw declines in dollars, down 2.4 percent to $4.4 million and 25.8 percent to $2.2 million, respectively. It is tough to slide when there’s no snow in the east; however, some Midwest areas did well.

Kids are snowboarding. Snowboards were up 9.0 percent to $88.9 million. Ride/style and Freeride are leading the way, up 35.6 percent and 12.4 percent in dollars, respectively. Boards netted an 18 percent increase in units but prices fell from $292 last season to $270.

Snowboard boot sales were up 3.3 percent to $55.1 million and snowboard bindings were up 8.1 percent to $43.7 million. Non step-in boots and carry-over saw most of the growth, up 10.9 percent and 53.0 percent, respectively. In addition, non step-in bindings grew 21.8 percent in sales this season. Only 4.4 percent of snowboard equipment is sold in March. It sells best early in the season.

Insulated Parkas Hung in There

Apparel tops are down 0.9 percent to $241.6 million. There are 100,000 more tops hanging at the end of March 2002 than in 2001. The insulated parka sold well this season, up 10.5 percent compared to last year. Both men’s and women’s insulated parkas sales were up, 9.8 percent and 21.0 percent, respectively. Shell sales were slow, down 16.6 percent. Men’s, women’s, and juniors all saw a decline. With the weather staying relatively warm around the country, vests and fleece tops remained strong through the season. Vest sales were up 18.0 percent while fleece gained 7.5 percent.

Overall, the apparel suit category is down 41.6 percent to $19.5 million. The only category registering any gains is stretch suits, up 56.4 percent in dollars.

With the lack of snow, bottoms were down 8.8 percent in dollars to $102.8 million. The only types of bottoms to register any gains were insulated waist pants (up 1.0 percent) and juniors (up 2.9 percent).

Both snowboard tops and bottoms struggled as they lost 4.9 percent and 9.4 percent in sales for the season, respectively. The only gains to be made were in women’s snowboard tops, up 7.8 percent and carry-over, up 84.5 percent.

There are danger signs in snowboard apparel. The junior categories are slipping and carry-over represents 17 percent of units sold. While the new bottom inventory is okay for the end of the season, tops are not.

Hot Trend of the Season: Snowdeck/Skate

Equipment accessories were down slightly by 0.9 percent to $251.1 million. However, there were some categories that came out on top. Those categories registering gains were sunglasses (up 4.2 percent), auto racks (up 18.8percent) and snowshoes (up 1.7 percent).

Snowdecks/skates showed the strongest growth in this category selling more than 66,000 units with an average retail price of $85. Apparel accessories had it the worst. The category was down 14.5 percent in sales to $240.1 million. Overall, each category saw declines.

End of the Season Sales Report Chain Stores Down 7.7%

Chain store sales of winter sports products were down 7.7 percent for the season ending on March 31, 2002, compared to last season, according to the SnowSports Industries America (SIA) Retail Audit. In dollars, that translates to $506.6 million in sales compared to $548.7 million in 2001. The unit sales were also behind last year, down by 10.9 percent.

Jim Spring of Leisure Trends Group, which prepares the annual Retail Audit for SIA, said, “It was a problem year for the snowboard industry in chain stores. Teenagers are the pipeline for the snowboard market and they buy at chain stores. Teens are brand conscious, more so than adults. There has been a tendency for chains to avoid branded products and buy closeouts and off brands on the premise that teens are also price sensitive. However, this may be the wrong hypothesis. In some walks of life brands mean more than price. Teens didn’t buy in chain stores. So, where are they buying? The specialty stores increases are not nearly substantial enough to indicate that teens are buying there. It looks like they simply did not buy this year.

The SIA Retail Audit tracks and reports sales in all snow sports product categories. This is the final report for chain stores that examines sales through March 31, 2002, the end of the winter season. SIA is the not-for-profit industry trade group that represents manufacturers and distributors of snow sports products.

Total Equipment Sales Down

All equipment (alpine, snowboard and Nordic) for chain stores was down 18.8 percent to $123.8 million from $152.4 million in 2001. Alpine ski equipment was down 16.7 percent to $65.6 million, compared to $78.8 million last season. Nordic equipment was a bright spot at chain stores, increasing 25.5 percent to $10.2 million compared to 2001, when sales were $8.1 million. Snowboard equipment was down 26.8 percent to $48.0 million from $65.5 million last season.

Both apparel and accessories saw losses at chain stores through the end of the season, down 0.6 percent and 6.7 percent, respectively. Sales for apparel were $211.3 million while accessories were $171.4 million. Last season, sales for apparel were $212.6 million and accessories were $183.7 million.

Nordic Sees Gains Even with Lack of Snow

Alpine ski sales fell 14.3 percent to $27.3 million. However, ski units sales dropped only 3.3 percent, due in part to price cuts designed to move merchandise. Mid-fat (up 22.6 percent), fat (up 47.5 percent) and carry-over (up 71.1 percent) were all ahead of 2001 sales. Twin-tip (down 47.0 percent), carve skis (down 65.8 percent), ski boards (down 49.8 percent) and junior skis (down 31.6 percent) all had poor sales in chain stores. Old skis (carry-over or special buys) sold the most (96,000 pairs) with an average retail of $94. However, all skis sold for $153 average retail. Ski systems didnà­t sell as briskly in chain stores as compared to specialty shops with approximately 2,700 pairs sold.

Alpine boots fell 24.7 percent. Carry-over boots saved the category, up 18.4 percent. This was also the case with bindings which fell 15.4 percent. However, carry-over bindings were flying off the shelves, up 73.3 percent in sales. Poles were down 10.4 percent to $3.4 million. Nordic continued to stay surprisingly strong even with a lack of snow. Nordic skis climbed 20.1 percent to $3.9 million followed by bindings (up 21.6 percent to $1.5 million), boots (up 36.1 percent to $3.9 million) and poles (up 14.7 percent to $850,589).

There was a considerable slowdown in snowboard equipment sales this year at the chains. Snowboard sales were down 31.4 percent in dollars to $21.3 million. All categories of boards were down. The average retail price also dropped from $231 in 2001 to $160 this season. Snowboard boots and bindings followed suit (down 24.5 percent and 19.8 percent in sales, respectively). Both carry-over boots and bindings help saved the categories with gains of 58.2 percent and 14.5 percent, respectively.

Snowdecks/skates continued to be hot, with almost 13,000 units sold, selling for an average of $50.

Kids Bought Snowboard Apparel

Apparel tops were down 7.3 percent in dollars to $122.8 million. Shells were strong, up 17.1 percent in sales, which is opposite of what happened in specialty stores. Men’s (up 2.8 percent), women’s (up 63.7 percent) and junior (up 69.4 percent) all saw gains in sales. Vests and fleece are up – vests (up 10.0 percent in dollars,) fleece tops (up 16.3 percent in dollars) and sweaters (up 5.3 percent in dollars). Lack of closeouts is what suppressed the alpine top advances. Carry-over was down 61% in units. Suits took a hit, down 29.6 percent in dollars to $3.6 million.

Bottoms did well in chain stores, up 9.8 percent to $44.9 million. All types of alpine bottoms registered gain price. Teens didn’t buy in chain stores. So, where are they buying? The specialty stores increases are not nearly substantial enough to indicate that teens are buying there. It looks like they simply did not buy this year.

The SIA Retail Audit tracks and reports sales in all snow sports product categories. This is the final report for chain stores that examines sales through March 31, 2002, the end of the winter season. SIA is the not-for-profit industry trade group that represents manufacturers and distributors of snow sports products.

Total Equipment Sales Down

All equipment (alpine, snowboard and Nordic) for chain stores was down 18.8 percent to $123.8 million from $152.4 million in 2001. Alpine ski equipment was down 16.7 percent to $65.6 million, compared to $78.8 million last season. Nordic equipment was a bright spot at chain stores, increasing 25.5 percent to $10.2 million compared to 2001, when sales were $8.1 million. Snowboard equipment was down 26.8 percent to $48.0 million from $65.5 million last season.

Both apparel and accessories saw losses at chain stores through the end of the season, down 0.6 percent and 6.7 percent, respectively. Sales for apparel were $211.3 million while accessories were $171.4 million. Last season, sales for apparel were $212.6 million and accessories were $183.7 million.

Nordic Sees Gains Even with Lack of Snow

Alpine ski sales fell 14.3 percent to $27.3 million. However, ski units sales dropped only 3.3 percent, due in part to price cuts designed to move merchandise. Mid-fat (up 22.6 percent), fat (up 47.5 percent) and carry-over (up 71.1 percent) were all ahead of 2001 sales. Twin-tip (down 47.0 percent), carve skis (down 65.8 percent), ski boards (down 49.8 percent) and junior skis (down 31.6 percent) all had poor sales in chain stores. Old skis (carry-over or special buys) sold the most (96,000 pairs) with an average retail of $94. However, all skis sold for $153 average retail. Ski systems didnà­t sell as briskly in chain stores as compared to specialty shops with approximately 2,700 pairs sold.

Alpine boots fell 24.7 percent. Carry-over boots saved the category, up 18.4 percent. This was also the case with bindings which fell 15.4 percent. However, carry-over bindings were flying off the shelves, up 73.3 percent in sales. Poles were down 10.4 percent to $3.4 million. Nordic continued to stay surprisingly strong even with a lack of snow. Nordic skis climbed 20.1 percent to $3.9 million followed by bindings (up 21.6 percent to $1.5 million), boots (up 36.1 percent to $3.9 million) and poles (up 14.7 percent to $850,589).

There was a considerable slowdown in snowboard equipment sales this year at the chains. Snowboard sales were down 31.4 percent in dollars to $21.3 million. All categories of boards were down. The average retail price also dropped from $231 in 2001 to $160 this season. Snowboard boots and bindings followed suit (down 24.5 percent and 19.8 percent in sales, respectively). Both carry-over boots and bindings help saved the categories with gains of 58.2 percent and 14.5 percent, respectively.

Snowdecks/skates continued to be hot, with almost 13,000 units sold, selling for an average of $50.

Kids Bought Snowboard Apparel

Apparel tops were down 7.3 percent in dollars to $122.8 million. Shells were strong, up 17.1 percent in sales, which is opposite of what happened in specialty stores. Men’s (up 2.8 percent), women’s (up 63.7 percent) and junior (up 69.4 percent) all saw gains in sales. Vests and fleece are up – vests (up 10.0 percent in dollars,) fleece tops (up 16.3 percent in dollars) and sweaters (up 5.3 percent in dollars). Lack of closeouts is what suppressed the alpine top advances. Carry-over was down 61% in units. Suits took a hit, down 29.6 percent in dollars to $3.6 million.

Bottoms did well in chain stores, up 9.8 percent to $44.9 million. All types of alpine bottoms registered gains.

Snowboard apparel was up 17.0 percent to $40.1 million. Both snowboard tops (up 3.0 percent) and bottoms (up 27.8 percent) saw gains in sales.

Accessories Saw Some Positive Gains

Equipment accessories were just slightly down by 0.7 percent to $67.7 million. However, a few categories made gains – auto racks (up 20.2 percent from new car sales) and helmets (up 13.7 percent, on sale). The new snowdecks/skates are helping this category stay consistent.

Apparel accessories were down 10.2 percent to $103.7 million. A few categories hung in there and saw positive gains in sales including winter boots (up 24.6 percent), gloves (up 12.3 percent), mitts (up 7.4 percent), turtlenecks (up 2.3 percent) and headwear (up 5.8 percent).

For other statistics on winter sports, go to the News & Research section of “http://www.snowlink.com”. SIA provides valuable information on sales, participation and demographics for all winter sports and press releases on new products in 22 product categories.

***SIA***

SnowSports Industries America (SIA) is the national, not-for-profit, member-owned trade association that represents snow and winter sports outdoor companies. SIA produces the SIA SnowSports Show, the largest trade show and gathering place for the snow sports industry. Proceeds from the SnowSports Show fund market development programs for all snow sport disciplines. SIA also annually produces more than a dozen industry research studies. For more information, check out www.snowlink.com. SnowSports Industries America, 8377-B Greensboro Drive, McLean, VA 22102-3587. Phone: (703) 556-9020, Fax: (703) 821-8276, Email: siamail@snowsports.org. gains.

Snowboard apparel was up 17.0 percent to $40.1 million. Both snowboard tops (up 3.0 percent) and bottoms (up 27.8 percent) saw gains in sales.

Accessories Saw Some Positive Gains

Equipment accessories were just slightly down by 0.7 percent to $67.7 million. However, a few categories made gains – auto racks (up 20.2 percent from new car sales) and helmets (up 13.7 percent, on sale). The new snowdecks/skates are helping this category stay consistent.

Apparel accessories were down 10.2 percent to $103.7 million. A few categories hung in there and saw positive gains in sales including winter boots (up 24.6 percent), gloves (up 12.3 percent), mitts (up 7.4 percent), turtlenecks (up 2.3 percent) and headwear (up 5.8 percent).

For other statistics on winter sports, go to the News & Research section of “http://www.snowlink.com”. SIA provides valuable information on sales, participation and demographics for all winter sports and press releases on new products in 22 product categories.

***SIA***

SnowSports Industries America (SIA) is the national, not-for-profit, member-owned trade association that represents snow and winter sports outdoor companies. SIA produces the SIA SnowSports Show, the largest trade show and gathering place for the snow sports industry. Proceeds from the SnowSports Show fund market development programs for all snow sport disciplines. SIA also annually produces more than a dozen industry research studies. For more information, check out www.snowlink.com. SnowSports Industries America, 8377-B Greensboro Drive, McLean, VA 22102-3587. Phone: (703) 556-9020, Fax: (703) 821-8276, Email: siamail@snowsports.org.