The footwear market slowed in the second quarter of 2023, but performance footwear — led by running — saw solid gains.
According to new data from Circana (formerly IRI and The NPD Group), U.S. footwear industry sales revenue was down 5 percent at $10.3 billion in the second quarter, compared to the same time last year. This data covers wholesale footwear sales and does not include brands’ direct-to-consumer businesses.
Performance footwear was the fastest-growing segment in the market in Q2, with sales up five percent year-over-year to $1.9 billion, largely driven by men’s and kids. Soccer, basketball, and American football all saw gains, but running footwear was responsible for 40% of the performance category’s growth.
Footwear industry analyst at Circana Beth Goldstein noted that rising average prices could impact further growth and how consumers spend on shoes — despite the fact that price increases have started to level off. Retail footwear prices dropped 0.9 in June compared to the prior year, marking the first time prices dropped in 26 months. According to the Footwear Distributors and Retailers of America (FDRA), year-to-date footwear prices are up just 0.2 percent and are expected to decline year-over-year through the second half of 2023.
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“Consumers will continue to prioritize their must-haves over their nice-to haves in the second half of the year, so brands and retailers will have to work hard to prove value, with compelling product and messaging,” Goldstein said.
Sales of casual sneakers slowed in general, but sales of tennis-inspired shoes grew 18 percent and basketball-inspired shoes grew 5 percent.
Leisure and fashion footwear both saw declines in Q2, respectively down 8 percent to $4.5 billion and down 6 percent to $3.9 billion. Dollar sales for ballet flats grew 15 percent in Q2, though sales were still below pre-pandemic levels. Pumps grew by 9 percent and drivers and loafers were up by 18 percent. Fashion sandal sales were down 9 percent due to wet and cooler weather.
Starting this week, major retail and footwear companies will begin reporting results for the second quarters, starting with Crocs Inc., Skechers USA, Inc. and Deckers Brands.
For many players, these second quarter results will be an important measure of progress coming on the heels of a relatively slow start to the year. Throughout the first quarter, many retailers and brands noted softening sales as consumers pulled back on discretionary spending. Some companies, like Macy’s, Shoe Carnival, Designer Brands and Genesco even downgraded their full-year outlooks to reflect the hit to sales and a murkier consumer environment.
