Unit sales of the US footwear industry declined 12 per cent in Q1 FY2022 while revenues declined 3 per cent as average prices increased 11 per cent. Compared to Q1 2019, revenue for the quarter increased by 3 per cent while unit sales declined by 10 per cent. In addition to the missing additional income from stimulus money, inflation fears might be driving some of the softness in the footwear industry this year.

Sales of some top footwear brands have softened, versus last year, and is underperforming compared to the rest of the market. There is a lot of activity in the footwear industry, particularly in the athletic space, as up-and-coming brands and new styles and technologies are being launched. Revenue from women’s footwear increased 4 per cent in Q1 while men’s segment saw a dip of 6 per cent, and children’s 12 per cent The average selling price (ASP) for women’s footwear increased more than other categories, which fueled its revenue increase.

Revenues in the sport leisure footwear category declined in the mid-teens in Q1, with units down in the high teens and average selling prices higher by mid-single digits. Nike’s sport leisure sales declined by about 25 per cent, while sales of Jordan and Adidas dropped in the mid-teens.

Sales revenue from fashion footwear, including dress, casual, and slippers, grew 11 per cent, as unit sales fell by 11 per cent. The only fashion segment to post unit sales growth was slippers, with sales rising across all wearers.

Within the fashion category, revenue from private label brands declined slightly. Crocs’ sales grew 9 per cent and Steve Madden’s sales grew 57 per cent, due to rising sales for sandals. Skechers sales declined 14 per cent.

Q2 aims to return to more pre-pandemic behaviors, such as more in-person work, travel, and attendance at events and gatherings. This will push up footwear sales in the fashion segment, while interest in fitness and the outdoors will help to drive the athletic business. However, macro pressures on the consumer combined with tough comparisons from 2021 will likely curb growth.