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
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Nov 22, 2024 - Employment, Inflation Up
                            • Employment at sporting goods wholesalers increased in September 2024 year over year while labor costs fell slightly, according to the US Bureau of Labor Statistics. Employment grew nearly 4% in September 2024 compared to a year ago. Average wages for the nonsupervisory employees at sporting goods wholesalers decreased 0.7% in September 2024 year over year, reaching $27.38 per hour. Producer inflation for miscellaneous durable goods wholesalers, including sporting goods wholesalers, was up 3.8% in September 2024 compared to a year ago. Sales for miscellaneous durable goods wholesalers, including sporting goods wholesalers, increased 6.3% year over year in July 2024 and grew 4.5% from the previous month, according to the US Census Bureau.
                            • A new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals shows the tariffs could increase costs of major consumer product categories including apparel, toys, furniture, household appliances, footwear, and travel goods. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel and $6.4 billion to $10.7 billion more for footwear with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay,” according to the study.
                            • 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 October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
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