The US athletic shoe market generates nearly $12 billion of annual retail sales as detailed in Exhibit l. Premium brands such as Nike and Reebok generate average gross margins to retailers of 47% making this segment highly attractive to retailers.
U.S. Athletic Shoe Manufacturers Market Share and Volume of Sales by Category
(in millions of pairs of shoes)
|
Brand |
Mkt% | Number | Womens | Mens | Girls | Boys |
| Nike | 32 | 120 | 52 | 37 | 18 | 13 |
| Reebok | 24 | 89 | 39 | 28 | 13 | 9 |
| Keds | 6 | 22 | 10 | 7 | 3 | 2 |
| L A Gear | 5 | 19 | 8 | 6 | 3 | 2 |
| ASICS | 4 | 15 | 6 | 5 | 2 | 2 |
| Others | 29 | l08 | na | na | na | na |
| TOTAL | 100 | 373 | 115 | 83 | 39 | 28 |
The top five manufacturers account for over 70% of the 373 million pairs of shoes sold annually and enjoy gross margins of 38.2% to 40.8% and operating margins of 13.3% to 15.7%. The $11.6 billion in retail sales translates into wholesale sales of in excess of $5 billion. The Exhibits below detail further market information.
The average wholesale shoe price for the top five manufacturers is approximately $30.00 with their market share heavily skewed towards the more expensive end of the market.
U.S. Athletic Shoe Manufacturers Market Share and Dollar Sales by Category
($ millions)
|
Brand |
Total | Womens | Mens | Girls | Boys |
| Nike | 3,715 | 1,505 | 1,613 | 277 | 320 |
| Reebok | 2,785 | 1,128 | 1,209 | 208 | 240 |
| Keds | 696 | 282 | 302 | 52 | 60 |
| L.A Gear | 580 | 235 | 252 | 43 | 50 |
| ASICS | 465 | 188 | 202 | 35 | 40 |
| Others | 3276 | na | na | na | na |
| TOTAL | 11,607 | 3,338 | 3,578 | 615 | 710 |