Women's Retail Sales in the Outdoor, Run, Snow Sport, and Cycling Industries

Driving Growth Through Enhanced Marketplace Insight

Women’s Market 2012

Sales and Trends Update

July 18th, 2012

Presented by Liz Stahura

estahura@leisuretrends.com

(303) 786-7900 ext. 120

Webinar will start at 35 past the hour

Outdoor Industries Women’s Coalition

1,600 members

95 Corporate members

130 volunteers

OIWC Vision: Respect, inclusion and gender equality at every level in the workplace.

OIWC Mission: Advocacy, education and resources for women in the outdoor, bike and snow sports industries.

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Thanks to our many corporate members of OIWC, especially our Gold and Platinum members.

Platinum:

Gold:

OIWC Corporate Members

Leisure Trends Group – 23 Years of Free Time

Retail Sales Tracking covering over $15 Billion in retail sales • Outdoor • Cycling • Snow Sports • Run Specialty • Paddle Sports • NEW 2012! Independent Shoe (NSRA) • NEW 2012! Sporting Goods

Consumer Research – Why • LeisureTRAK- Free Time of Americans • The “ALPHA” Consumer (Most Active Americans Panel™)

Customer Relationship Management (CRM) • Engage Customers • Maximize Loyalty • Drive Repeat Sales

Analysis of the pipeline - the volume that is moving, how it’s moving, and what's not moving... what's growing and what's shrinking.

Retail Tracking Service

Size of industry Category and class trends Volume – units and dollars sold Competitive analysis- all brands Model analysis- all styles Margins Turn & sell thru Inventory Gender & Adult/Jr Price point & average retail selling price

Agenda

Women’s Specific Sales Overview: Cross Industry Perspective

True North Marketing: 2012 Style Trends That Matter

Translating Trends into Sales: What’s Hot at Specialty Retail?

Outdoor

Run

Cycling

Snow

Wrap up and Questions

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$3.5B+ Sales – All Women’s Products

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+/-31% All Women’s Specific Products

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Cross Industry Perspective - % of Total Specialty Sales

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Cross Industry Perspective - % of Dollars Sold – Specialty Retail

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Cross Industry Perspective - % of Units Sold – Specialty Retail

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2012 Sales – All Women’s Specific Products

OUTDOOR SALES +4%

SNOW SALES -1%*

BIKE SALES UP +11%

RUN SALES +13%

*Oct – March winter season

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(+4%)

(-5%)*

(+12%)

(+7%)

What Women Want –

Key Style Trends to Watch in 2012

True North Marketing

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TREND #1: WANTED: Just a little bit of style

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“I want more style! I am taking back the girl in sports clothes I buy.” Almine, trail runner, rock climber, mountaineer. “Style is very important to how I buy. I am very much influenced by how a store or catalogue will display an entire outfit.” Shelley, hiker, fly fisher, camper. “I don’t want a grandma shoe. I want a shoe with real style.” Peggy, trail runner, paddler, backcountry skier. And 63

TREND #2: Looser Tops that Drape

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“It always seems like I have to size up in tops, which no woman likes to do. I know I don’t have the traditional skinny-runner-with-no-boobs physique. You don’t have to reinforce it with all those tight, tiny tops.”

Jenny, 50 mile a week trail runner.

TREND #3: Radical running apparel silhouettes

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“I just did my first trail run in a skirt and will never wear shorts again. I imagine that is how it feels to be a guy running without a shirt on!”

“My favorite summer running outfits is a Nuu Muu dress with Moving Comfort compression shorts and bra underneath. After wearing running skirts and dresses, I don’t know if I’ll go back to traditional running outfits again, at least in the summer.”

Connie, trail runner.

TREND #4: Insulating and warmth providing apparel – even in summer.

“My single biggest frustration with cycling is splashing in puddles on the roadway and getting cold.” – Hannelore, bicycle enthusiast and hiker. “I just want to be warm. If I am cold, I am not having fun.” Shelley, hiker, fly fisher, camper. “I aspire to own one of those down sweaters that look so warm but without the Michelin-man-look.” Sarah, hiker, camper, skier, snowshoer. 17

TREND #5: Creative use of accessories, especially wool socks

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“When it is cold, I prefer to use wool socks instead of running tights or pants. It gives me a little ventilation and I can choose my socks to reflect my mood that day,”

Jenny, trail runner.

TREND #6: Versatile Bike Apparel

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“I am bummed that Levi’s only did the commuter jeans for men.”

Robin, bicycle commuter and yogi.

TREND #7: A brand’s footwear and apparel go hand-in-hand

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“I always look at running apparel when I go into the store. Even if I am there to buy shoes. I usually look at apparel first. If a brand has only shoes and no apparel, I probably am not as aware of their brand as I am with someone who has a lot of apparel.” – Connie, trail runner.

OUTDOOR - Women’s Specific Sales Reach $1.8B in ’11, Continue Growth in ‘12

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+6% +1%

+12%

+13%

+11%

Prior YTD YTD YTD Change YTD Growth

Outdoor Equipment $30,344,150 $30,086,775 ($257,376) -1%

Equipment Accessories $14,628,721 $16,663,554 $2,034,834 14%

Apparel $425,896,776 $435,970,147 $10,073,371 2%

Footwear $169,616,315 $182,922,029 $13,305,714 8%

All Products $640,485,962 $665,642,504 $25,156,543 4%

OUTDOOR SPECIALTY - Women’s Specific Sales Nearly $800M in 2011

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-1% +1%

+5%

+14%

+7%

RUN SPECIALTY - Women’s Specific Sales Continue Steady Growth

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+6%

+15% +9%

+7%

Prior YTD YTD YTD Change YTD Growth

Footwear $124,702,533 $143,143,045 $18,440,511 15%

Apparel $22,221,277 $22,271,037 $49,760 0%

Accessories $3,488,864 $3,892,377 $403,513 12%

All Products $150,412,675 $169,306,460 $18,893,785 13%

CYCLING SPECIALTY - Plenty of Room to Grow! Women’s Specific Sales Total $441M in ‘11

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+7%

-2%

+1% +27%

+5%

Prior YTD YTD YTD Change YTD Growth

Bicycles $151,564,281 $169,164,477 $17,600,196 12%

Apparel/Helmets/Shoes $36,966,124 $39,278,713 $2,312,589 6%

Aftermarket Parts $3,350,360 $3,985,904 $635,544 19%

Aftermarket Accessories $2,193,537 $2,713,752 $520,215 24%

All Products $194,074,301 $215,142,845 $21,068,544 11%

SNOWSPORT - Women’s Specific Sales Edge Down 1%, Remain above $1B

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-3%

+2%

-8%

-1%

Hot Categories in Outdoor Specialty - 2012 (Dollars Sold)

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• Sandals: +23% • Casual Shoes: +63% • Trail Running Shoes: +24% (minimalist trail shoes up 71%)

• Packs: +19% •Climbing Gear: +46%

•Insulated Tops: +2%

• Sportswear: +7% •Skirts: +28% •Dresses: +23%

• Accessories +13% Totes/Handbags +20% Sunglasses +27%

Hot Categories in Run Specialty - 2012 (Dollars Sold)

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• Minimalist Road Shoes: +127% • Neutral/Cushion Road Shoes: +29% • Trail Running Shoes: +11% (minimalist trail shoes up 32%) • Women’s Apparel

• Dresses +482% • Loose Sleeveless: +50% • Skirts +30% • Outerwear Tops: +7% • Long Sleeve +16%

• Accessories +16% Arm/leg Sleeves +1676% Socks +5% Insoles: +15%

Hot Categories in Cycling Specialty - 2012 (Dollars Sold)

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• Transit/Fitness Bikes: +33% • 29er MTB: +278% • Road Bikes: +2% Women’s Apparel +5% • Casual Apparel +65% • Short Sleeve Jerseys +22% • Skirts +34% • Warmers +31% • Socks +17%

•Helmets: +19% • Saddles: +21%

Brand in Mind: Athletic Footwear, Apparel, Equipment

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Sales Staff Matter: Bike Example

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Road Bike

Mountain Bike

83%

86%

% Who Prefer Help from a Sales Assoc.

Key Insights

In General , Sales of Women’s Specific Product are Outperforming Men’s/Gender Neutral so far in 2012

There is still room to grow women’s specific sales – particularly in cycling specialty stores

Footwear is HOT in 2012: Sandals, Trail, Casual, Minimalist, Running Key Words for 2012: Style and Performance, Design, Drape, Versatile, Radical Silhouettes, Minimalism, Warmth, Creative Layers, Skirts/Dresses, Celebrating Femininity

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Liz Stahura

Senior Retail Analyst

Leisure Trends Group

303.786.7900 ext 120

estahura@leisuretrends.com

Ali Sacash-Johnson

Principal

True North Marketing – we guide you in the right direction

+1.360.980.2611

ali@truenorthmarketing.biz

Thank You!