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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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 12 workers, and generates about $9-10 million annually.

    • The sporting goods wholesale industry consists of about 4,600 companies that employ about 56,900 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, BSN Sports, and United Sporting Companies (Ellett Brothers).
                            Industry Forecast
                            Sporting and Recreational Goods Wholesalers Industry Growth
                            Source: Vertical IQ and Inforum

                            Coronavirus Update

                            May 13, 2022 - China Will Continue With “Zero-COVID” Strategy
                            • China Vice Premier Sun Chunlan said that the country will continue its “dynamic zero-Covid” strategy “without hesitation or wavering.” Experts say that the strategy favors measures such as mass testing, forced quarantines, and city-wide lockdowns. China has rejected effective mRNA COVID-19 vaccine technology, relying instead on traditional, inactivated vaccines to achieve its 86.6% fully vaccinated rate. Inactivated vaccines are less effective against Omicron and, analysts suspect, China's exclusive use of the old technology is the primary reason why China's borders remain mostly sealed to the outside world. Experts also say that, while President Xi Jinping hoped to minimize the cost of a zero-Covid strategy, this renewed campaign will rapidly and exponentially take a heavy economic toll. It will further suppress exacerbate supply chain disruption, suppress domestic consumption, and encourage the exodus of investors.
                            • Availability of sporting and recreational goods may worsen if manufacturing activity in China continues slipping. China’s manufacturing output decreased at the sharpest pace in 26 months in April amid escalating COVID-19 lockdowns. The Caixin/Markit purchasing managers’ index (PMI) decreased to 46.0 in April from 48.1 in March. A reading below 50 suggests output is contracting rather than expanding. The rate of decline in manufacturing production was the second steepest since the survey began in early 2004, beaten only by the reduction seen at the initial onset of the pandemic in February 2020.
                            • Sales at sporting goods, hobby, musical instrument, and book stores increased 3.2% month over month on an adjusted basis in March but decreased 5.7% year over year during the period, according to the US Department of Commerce. The sales data measures dollars spent at US businesses, so the increase partly reflects inflation in the cost of everyday products from food to gasoline. Consumer prices are increasing at the fastest pace in years, a phenomenon largely attributed to the uneven reopening of the global economy.
                            • Employment in the sporting and recreational goods wholesaler trade increased 4.6% year over year in March.
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