The red-hot athleisure trend has led many retailers and brands to unveil their own collections in recent years, and the term has been added to the dictionary. Now there's more evidence that it's not losing steam.
The “sport leisure” style has become the largest category in the U.S. sneaker space, beating “performance”-oriented footwear, according to a study released this week by market research firm NPD Group. In sharp contrast, while demand for sport leisure styles surged 17% last year to $9.6 billion in sales, sales of performance apparel tumbled 10% to $7.4 billion, NPD said, adding the performance category’s decline has “accelerated” the last two years.
(Merriam-Webster defines athleisure as "casual clothing designed to be worn both for exercising and for general use.”)
Sales of “running-inspired” sneakers jumped 39% and “casual athletic” styles rose 24%, driving 2017 growth, NPD noted. On the other hand, sales of performance-geared shoes dropped 7% while training sneaker sales slumped 15%, according to NPD.
In all, total U.S. sneaker sales rose 2% to $19.6 billion last year, according to NPD.
“I often get asked whether the bubble around leisure will burst anytime soon, and the answer is no,” said Matt Powell, senior sports industry advisor at NPD, in the report. “Athleisure rules the runway, and the line between what is an athletic shoe and a casual shoe continues to blur. Brands and retailers must continue to feed this trend.”
They are, and the eagerness is coming from brands both inside and outside of the traditional athletic space. For example, upscale handbag and accessories label Coach will “continue to amplify the sport category” heading into spring, parent company Tapestry CEO Victor Luis said this week on a conference call, adding Coach has introduced a “broad" pre-spring sneaker assortment.
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Meanwhile, for Tapestry’s luxury Stuart Weitzman shoe label, sneakers were also one of the better-performing categories, Luis said.
In another example, Steve Madden has “got a lot of things working in sneakers,” said CEO Ed Rosenfeld on an earnings call in October. “Sneakers obviously are most important, and we continue to see nice increases there, and really across a range of different types of sneakers.”
Indeed, at a Steve Madden store near New York’s Union Square earlier this week, various sneaker styles, not boots and other dressier shoes, were the central display in the store window.
While fashion-oriented brands are eager to expand in athleisure, one big beneficiary of that trend is none other than the world’s No. 2 sneaker giant Adidas.
The German company’s 2017 U.S. sneaker sales rose over 50% last year, the fastest of all players, NPD said. Adidas’s classic three-stripe Superstar and Tubular Shadow sneakers, both part of its athleisure play, made NPD's top 10 selling shoe list.
Adidas is keenly aware of the fashion importance. On its website, it describes the Tubular Shadow knit shoe as an update of its original Tubular running design for “contemporary street fashion.” For its Superstar line, Adidas bills it as “an authentic reissue of a classic sneaker” fit for anyone from “basketball MVP to streetwear queen.” The brand also has added fashion buzz through well known partnerships with celebrities and designers including Kanye West, Pharrell Williams and Stella McCartney.
There are also some signs that the athleisure trend is not just a U.S. phenomenon.
In Adidas’ most recent earnings, it noted sales of its Originals line, which Superstar is part of, jumped 22%, driven by a “strong” double-digit growth across its key regions.
But just as Adidas has thrived thanks to athleisure, one key rival, Under Armour, has suffered as a result.
“We’ve built the world’s third largest athletic brand, a performance brand,” said Under Armour CEO Kevin Plank on a conference call in October. The company’s North America sales have been hurt by “shifting fashion preferences” for “lifestyle” away from performance products, he said, adding 90% of its sneaker sales at the time were basketball sneakers and other “performance” oriented footwear. Plank said Under Armour is responding to that consumer shift.
However, any improvement may be slow to come by. A recent ecommerce study showed Under Armour’s January online orders fell compared to the prior six-month average, while orders rose for other brands including Lululemon and Gap’s Athletica.
It’s not just apparel and shoes marrying comfort and fashion that are getting consumers' money. A separate NPD study last year showed cosmetics including long-lasting and waterproof makeup geared to make people look good before, during and after workout is driving beauty sales.
A case in point, beauty brand Tarte even has a line of “athleisure essentials.”
With on-the-go and time-pressed consumers seeking a more active lifestyle and wanting to look good all the time, this hot trend may not be cooling any time soon.
