Sporting and Recreational Goods Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,600 sporting goods wholesalers in the US distribute merchandise related to sports and recreational activities. Major product categories include small firearms, ammunition, and shooting aids; athletic equipment and accessories; bicycles and bicycle parts and accessories; swimming pools and related supplies; and playground equipment. Other product categories include camping and fishing equipment; marine pleasure craft, equipment and accessories; skiing and snowboarding equipment; and billiards, pool, and bowling equipment and accessories.
Seasonal Demand
Demand for various types of sporting goods varies throughout the year, depending on the sport.
Dependence On Imports
The majority of sporting goods are manufactured in China or Taiwan, and then shipped to the US by sea.
Industry size & Structure
The average sporting goods wholesaler operates out of a single location, employs 14 workers, and generates about $10 million annually.
- The sporting goods wholesale industry consists of about 4,600 companies that employ about 66,500 workers and generate about $45 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 51% of industry revenue.
- Large companies include Big Rock Sports and BSN Sports.
Industry Forecast
Sporting and Recreational Goods Wholesalers Industry Growth
Recent Developments
Sep 19, 2024 - Sales Fall, Labor Costs Up
- Sales for miscellaneous durable goods wholesalers, including sporting goods wholesalers, fell year over year for the second consecutive month in June 2024, declining 5.2%% compared to a year ago and dropping 9.7% from the previous month, according to the US Census Bureau. Inventories for miscellaneous durable goods wholesalers dropped 4.3% in June compared to a year ago and were 2.5% higher than the previous month. Producer inflation for miscellaneous durable goods wholesalers was up 1.4% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Employment and wages at sporting goods wholesalers both increased in July 2024. Employment grew 3% in July 2024 compared to a year ago. Average wages for the nonsupervisory employees at sporting goods wholesalers were up 4.7% in July, reaching $28.29 per hour.
- High school sports participation has reached a record high of 8 million students in the 2023-24 school year, increasing for the second consecutive year, according to a National Sporting Goods Association survey. High school sports participation, a driver of industry sales, has been improving after hitting lows during the pandemic. The new participation record toppled the previous record of 7.9 million set in 2017-18. Eleven-player football remained the most popular boys' sport in 2023-24, and the emerging sport of flag football has seen the number of girls participating double from 2022-23 to 2023-24. Wrestling posted increases in participation for both boys and girls, with girls' participation growing 102% from 2021-22. The top participatory sports for girls were outdoor track and field, volleyball, and soccer, while football, outdoor track and field, and basketball were the top sports for boys. The top 10 states for sports participation were Texas (859,301), California (834,103), New York (341,454), Pennsylvania (336,946), Ohio (323,117), Illinois (320,603), Florida (299,398), Michigan (289,740), New Jersey (280,798) and Minnesota (224,179).
- Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved on a six-month average basis.
- Imports bound for the US grew 14% in July 2024 compared to a year ago, increasing for the 11th consecutive month, according to an S&P Global Market Intelligence report in Logistics Management. The 14% gain was the highest year-over-year growth rate since March when imports grew 16%. Import segments with the highest growth in July were information technology and consumer discretionary goods, with growth of 20% and 17%, respectively. According to the report, industrial imports were somewhat slower, likely linked to slower manufacturing activity. Many consumer industries have been aggressively shipping items early to bypass any potential challenges later in the year, which may contribute to a slowdown in growth rates later this year. According to an interview with S&P’s Chris Rogers, “If you look at consumer durables, they were up 11% compared to June, whereas normally you would see an increase in the 2%-to-4% range. That, to me, is a very clear sign of early shipping and also a more conservative outlook. It seems like everyone has finally learned the lessons of the past. That is particularly good if you are on the West Coast and shipping consumer goods.”
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