McLean, VA (Thursday, May 27, 2004) - Overall 2003-2004 season snowsport equipment sales were flat for the entire winter sport market (including specialty and chain stores), were flat -- increasing slightly by 0.6 percent in dollars to $2.21 billion compared to $2.20 billion in 2003 for August through March according to the SnowSports Industries America (SIA) Retail Audit. Unit sales were ahead 3.5 percent.

Sales at specialty ski and snowboard shops were flat, up only 0.4 percent compared to last season. In dollars, that translates to $1.72 billion in sales compared to $1.71 billion in 2003. Unit sales in specialty stores were up from last season by 4.0 percent. Sales for the month of March in specialty stores were $113.6 million compared to $122.8 million a year before, a drop of 7.5 percent. Unit sales for the month of March were down 5.7 percent as compared to March 2003.

Snowboard equipment sales carried the industry in both specialty and chain stores. “The snowboard market performed extremely well in the specialty stores this season with both equipment and apparel sales experiencing moderate growth,” said Christine Martinez, market research manager for SIA, the not-for-profit industry trade group that represents manufacturers and distributors of snow sports products. "Chain stores benefited this season from a healthy increase in sales of snowboard apparel. By the end of the season, snowboard apparel sales had reached $39.1 million, an increase of 13% over last season," Martinez added.

Overall sales at chain stores were flat, up only 1.3 percent compared to last season. In dollars, that translates to $493.8 million in sales compared to $487.4 billion in 2003. Unit sales were up from last season 2.4 percent. Sales for the month of March in chain stores were $42.0 million compared to $48.3 million, a drop of 12.9 percent. Unit sales for the month of March were down 11.7 percent as compared to March 2003.

SNOWBOARD MARKETS CONTINUE TO GROW AT SPECIALTY RETAILERS
Through March 2004, snowboard equipment (including snowboards, boots and bindings) sales were up 16% in dollars ending the season with $207.5 million in sales in specialty stores. In chain stores, snowboard equipment sales were down 2% through March.

At specialty retailers, snowboard (up 17% to $97.0 million), boot (up 14% to $61.4 million) and binding (up 17% to $49.1 million) sales all increased at moderate paces this season over last. At the end of March, snowboards were 75% sold-through with retail prices holding steady. Freestyle (up 37% to $38.7 million), all mountain (up 48% to $8.1 million) and carryover snowboard (up 65% to $8.6 million) sales performed remarkably well as compared to last season. Freestyle boards grew in popularity this season with 78% sold-through by the end of March. These boards accounted for 40% of the dollars sold this season with an average retail price of $322 (up from $313 last season). All mountain boards, only 7% of the snowboard dollars sold this season, took off and jumped 48% in dollars this season over last. Freeride board sales remained flat while freeride/freestyle hybrid board sales declined 28% to $6.4 million.

Carryover boots and bindings also performed very well this season at specialty retailers, up 72% and 113%, respectively, over last season. Step-in boots and step-in bindings experienced the opposite results this season, with 76% and 66% drops in dollar sales, respectively, over last season.

Snowboard equipment sales did not fare as well in chain stores as they did in specialty stores. Through March 2004, snowboard equipment sales were down 2% in dollars at chain stores, with total sales at $65.7 million.

Strong end-season snowboard sales helped turn early season negative chain store numbers into a 3% dollar advantage over last season to $29.0 million. Boot (down 1% to $21.1 million) and binding (down 12% to $15.7 million) sales were both down this season over last. Hybrid and all mountain snowboards were down 33% and 23%, respectively, over last season.

Positive signs came from the 69% jump in chain store sales of freestyle snowboards with an average retail price of $248 and ending the season with $5.5 million in sales. Carryover snowboards, which accounted for 39% of all snowboard units sold, were up 13% in dollar sales over last season.

Carryover boots (down 18% to $3.7 million) and bindings (down 27% to $2.3 million) at chain stores did not fare as well as boards. Neither did step-in boots nor step-in bindings which both experienced substantial declines over last season, 72% and 79% drops, respectively.

SNOWBOARD APPAREL STRONG
Consumers purchased snowboard apparel this season to complement their new equipment. By the end of March 2004, all snowboard apparel was up a considerable 17% in dollars to $96.5 million in sales at specialty retailers, and finished the season with 75% sold-through. In particular, junior snowboard tops and women’s snowboard bottoms saw increased specialty sales over last season, gaining 23% and 21%, respectively. Men’s and women’s snowboard tops each increased 18% in dollars over last year. Carryover snowboard apparel sales shot up 75% in dollars to $8.0 million, but only accounted for 8% of all snowboard apparel dollars sold this season in specialty stores.

Snowboard apparel managed to make some strong gains in chain stores as well this season, up 13% over last season to $39.1 million. Women’s and junior snowboard tops did very well over last season, up 45% and 12%, respectively, in chain stores. This put snowboard top sales up 23% over last season. Snowboard bottoms also performed well at the chains, ending March 2004 with an 11% increase over last season.

INSULATED PARKAS AND SOFT SHELLS DOMINATE APPAREL MARKET
Overall, specialty apparel sales (including tops, bottoms and snowboard) ended the season up 8% in dollars to $514.6 million. Cold weather in the East helped propel specialty store snowboard apparel, as well as insulated parkas and soft shells. When comparing this season to last, insulated parka sales were up 17% to $115.8 million at specialty retailers. Sell-through was strong with only 18% available at the end of March. Women, in particular, propelled insulated parka sales up 23% in dollars over last season.

Soft shell parkas more than doubled their specialty store sales over last season. They were up a substantial 109% in dollars to $14.0 million ending the season with 70% sold-through. Soft shell waist pants performed almost as well as their parka counterparts, jumping 103% in dollars over last season to $2.0 million. The brutal weather also helped contribute to very good fleece and base layer apparel sales at the specialty stores. As compared to last season, fleece tops were up 28% to $61.7 million and base layer apparel up 15% to $77.1 million.

Shell parkas and apparel suits did not fare very well at specialty stores, with dollar sales behind 9% and 40%, respectively, over last season. Vests not including fleece (down 5% to $3.7 million) and sweaters (down 18% to $20.9 million) also ended the season behind last season’s specialty store sales. While most apparel suits tracked behind last season’s sales, stretch suit sales ended the season up 14% over last season.

Apparel in chain stores did not perform as well as in the specialty stores this season. Milder weather in the West where chains reign, did not help apparel sales. Chain store apparel sales were flat, totaling $187.9 through March 2004.

Women’s insulated parkas (up 7% to $14.8 million), women’s shell parkas (up 33% to $8.8 million) and women’s soft shell parkas (up 418% to $734,000) joined snowboard apparel to help to stabilize the apparel category this season at the chains. Also contributing to chain store apparel sales were bibs, (up 275% to $3.0 million), soft shell waist pants (up 95% to $323,000), fleece (up 24% to $24.0 million) and apparel suits (up 15% to $2.6 million).

INTEGRATED SKI SYSTEMS SEE DOUBLE DIGIT GROWTH IN BOTH CHANNELS
Integrated ski systems showed admirable gains this season in both specialty and chain stores. In the specialty stores, integrated ski system sales increased 24% in dollars, comparing this season to last. By the end of March, integrated ski systems were 79% sold-through with sales totaling $63.7 million. In chain stores, integrated ski systems almost doubled their sales to $11.3 million this season with a tremendous 84% jump over last season. Average retail prices fell from $421 last season to $392 this season.

Even with the success of integrated ski systems, overall equipment sales (alpine, snowboard, Nordic and telemark) were down 3% in dollars at specialty retailers as compared to last season, with sales totaling $643.4 million through March 2004. In specialty stores, snowboard equipment grew 16% in dollars but alpine equipment (including skis, boots, bindings, poles and systems) declined 14% this season over last. At the end of March, all alpine ski equipment was 73% sold-through at specialty stores.

In chain stores, alpine equipment sales (including skis, boots, bindings, poles and systems) grew by 3% with $71.7 million in sales, and snowboard equipment fell 2%. Overall equipment sales (alpine, snowboard, Nordic and telemark) were flat in dollars at chain stores as compared to last season with sales totaling $147.3 million by the end of the season.

ALPINE SKI SALES DOWN
Alpine skis, excluding integrated systems, declined 21% in dollars over last season at specialty stores, ending the season with $122.5 million in sales. Even the lower retail prices (down 10%) did not spur sales. Alpine skis had 72% sold-through at specialty retailers by March 2004. Add alpine skis to integrated systems and total skis sold stood at 572,000, a 3.9% decline from last season’s 596,000 units sold by specialty stores.

Substantial dollar decreases at specialty retailers came from carve skis (down 37% to $14.4 million), ski boards (down 33% to $3.4 million) and midfat skis (down 28% to $66.0 million). Twintip ski sales were down 7% to $6.1 million while junior skis were up 7% to $11.8 million by the end of the season. Fat ski sales managed a healthy jump of 19% in dollars over last season at specialty stores, ending the season with $8.3 million in sales. “Fatter under the foot” continues to be the present trend. Through March, average retail was $512. Carryover ski sales at specialty stores rose 24% in dollars to $12.0 million. One out of every 7.1 pairs of alpine skis sold in specialty stores (excluding systems) was a carryover unit.

Alpine skis, excluding integrated systems, fell 18% in dollars at chain stores, as average retail prices fell 5% to $177. Substantial dollar decreases in chain stores came from ski boards (down 58% to $490,000) and carryover skis (down 33% to $3.9 million). Midfat skis, accounting for 54% of all alpine ski sales in chain stores (no systems), ended the season down 22% in dollars over last season.

There were some bright spots in the alpine ski category this season as chain stores diversified their offerings. Fat ski sales spiraled up 46% in dollars to $1.2 million through March 2004 at the chains. Twintip ski sales rose 27% to $918,000. Their combined sales accounted for 10% of the alpine ski dollars sold in chains. Carve ski sales increased 38% reaching $1.6 million in sales through March 2004. The average retail price of carve skis jumped from $146 to $211 comparing this season to last. Junior ski units jumped 27%, but lower average retail prices kept the dollar increase (9%) moderate at chain stores.

ALPINE BOOTS SUFFER TOUGH WINTER SALES
At the end of March, specialty store alpine boot sell-through stood at 73%. Total specialty alpine boot sales declined 14% in dollars due to falling sales in recreation boots (down 41% to $14.6 million), soft boots (down 32% to $9.3 million) and high performance boots (down 18% to $61.1 million). At the end of March, 36% of soft boot inventory in specialty stores was still available. In line with their ski sales, carryover boots also performed well for specialty retailers this season with a 9% increase over last season.

Alpine boot sales fell 6% in dollars this season over last in chain stores. A 27% unit drop in carryover boots helped the category’s average retail price increase from $158 last season to $169 this season. High performance boots were the only real performers at chain stores, up 49% over last season to $8.5 million. The average retail price remained steady at $251 giving them 22% of the boot dollars sold in chain stores this season. Dollar decreases came from recreation boots (down 49% to $3.2 million), carryover boots (down 28% to $3.6 million), soft boots (down 21% to $1.2 million) and junior boots (down 5% to $1.4 million). Sport performance boots, accounting for 31% of all boot dollars this season in chain stores, increased 6% in dollars even as units slid 8%.

ALPINE BINDING SALES DROP, TOO
Along with a drop in alpine ski and boot sales at specialty stores, came a drop in alpine binding sales as compared to last season – overall down 26% in dollars to $45.0 million through March 2004. Contributing to this drop were falling sales in DIN 1-7 bindings (down 82% to $3,345), DIN 8-11 bindings (down 24% to $21.9 million), DIN 12-14 bindings (down 38% to $13.2 million), skiboard bindings (down 79% to $24,643) and carryover bindings (down 23% to $2.3 million). At the end of March, all free standing bindings were 69% sold-through at specialty stores.

Stand-alone binding sales suffered at chain stores, too. Sales fell 10% in dollars over last season totaling $9.1 million in sales through March 2004. DIN 8-11, which accounted for 59% of all bindings sold in chain stores, declined 16% in dollars while the much smaller DIN 12-14 category grew 7% in dollars to $2.5 million. DIN 1-7 (down 58%), carryover (down 9%) and junior (down 3%) bindings all saw dollar decreases this season over last at the chains.

POLE SALES RESULTS MIXED
Poles did not keep pace with total ski sales at specialty stores. Alpine pole sales totaled $12.4 million through March 2004. The entire alpine pole category fell 18% in dollars, largely due to a 44% plunge in carryover pole sales over last season.

Alpine pole sales were flat over last season at chain stores, up to $4.1 million in sales through March 2004. Adult poles (up 25% to $3.5 million) and junior poles (up 12% to $290,000) both saw sales increases over last season. However, a huge 70% drop in carryover pole sales held down growth for the entire alpine pole category in the chains.

NORDIC AND TELEMARK GARNER $44 MILLION IN SPECIALTY STORE SALES
Nordic and telemark ski equipment continued to gain popularity in specialty stores this season. Nordic ski equipment sales jumped 43% in dollars to $36.8 million through March 2004. Nordic skis (up 47% to $15.4 million), boots (up 39% to $12.2 million), bindings (up 47% to $5.8 million) and poles (up 33% to $3.5 million) grew in popularity at the same pace. Comparing this season to last, average retail prices of Nordic skis increased $15 to $135.

Telemark ski equipment sales performed even better, culminating in an 86% increase over last season’s specialty store sales and reaching $7.0 million by the end of the season. Telemark ski sales shot up 62% in dollars at specialty retailers. This increase is dramatic but only translates to 7,400 total pairs sold out of the snowsport specialty channel.

Telemark boot and binding sales leapt 110% and 90%, respectively, at specialty retailers. With boot and binding sales outpacing ski sales, telemark skiers seem to be retrofitting old alpine skis or are updating their old telemark skis with new bindings.

Combined, Nordic and telemark sales totaled $43.8 million in specialty stores this season, compared to alpine equipment’s $392.0 million in sales.

Nordic skiequipment sales (including skis, boots, binding and poles) ended the season up 26% in dollars over last season in the chain stores, totaling $7.8 million in sales through March 2004. Nordic skis (up 24% to $3.1 million), boots (up 35% to $2.9 million) and bindings (up 25% to $1.0 million) all experienced substantial chain store gains in dollar sales over last season.

Telemark ski equipment (including skis, boots and bindings) performed even better at chain stores this season with a 45% jump in dollars over last season, ending March 2004 with $2.1 million in sales. At an average retail price of $234 in March 2004, telemark skis were up 32% over last season up to $761,000 in chain store sales. Telemark boots (up 46%) and bindings (up 72%) also saw dollar increases over last season at chain stores.

Combined Nordic and telemark sales totaled $9.9 million in chain stores this season, compared to alpine equipment’s $71.7 million in sales.

WEATHER CONTRIBUTES TO APPAREL ACCESSORY SALES
The entire accessories category was up 7% in dollars at chain stores to $158.7 million through March 2004. Apparel accessory sales performed very well for the chains, ending the season with $98.6 million in sales, a 13% increase over last season. Winter boots were hot in chains this season. Winter boots (up 84% to $6.1 million), turtlenecks (up 43% to $2.2 million), snowshoes (up 9% to $3.1 million), base layer (up 17% to $25.2 million), goggles (up 12% to $11.5 million), headwear (up 8% to $14.1 million) and gloves (up 5% to $20.0 million) all contributed to a gain in dollars at chain stores over last season. Snow deck/skate and helmet sales were notably down this season at chain stores, by 41% and 11%, respectively.

Although accessory sales ended the season up 7% in chain stores, the accessories category in specialty stores declined 2% in dollars to $561.3 million through March 2004. Equipment accessories, in particular, declined 11% due to substantial drops in snow deck/skate and helmet sales, 54% and 29%, respectively at specialty stores. Snowshoes cushioned these declines with a moderate jump of 13% over last season up to $16.5 million through March 2004. Sunglasses and goggles each declined 7%, respectively.

Apparel accessory sales at specialty stores ended the season up 6% in dollars over last season to $312.3 million. Winter boots (up 59% to $14.6 million), gloves (up 15% to $54.0 million), base layer (up 15% to $77.1 million) and socks (up 14% to $34.4 million) all experienced moderate specialty store increases over last season. Turtleneck and headwear sales declined 27% and 12% in dollars, respectively, over last season.