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Outdoor Update

The outdoor market has suffered in the past few years as weather has been warmer than usual. We ended the year with cooler temperatures and snowfall in recent weeks. Retailers and brands have reported that while they are taking control of their inventories, it is still affecting the wholesale channels.

As we continue to speak to the rise of Streetwear brands, we are noting outdoor brands also gaining momentum with the current evolution of athleisure and streetwear. Part of the rise to the outdoor market continues to be due to the wellness boom with Millennials and their desire to do sport activities outdoors.

Brands like Moncler and Canada Goose have gained popularity and reported strong sales despite the weather headwinds. Luxury e-commerce site, Net-A- Porter has also reported a positive response to their outdoor category.

JHA View

Despite the climate changes, the outdoor market is gaining momentum through buy now wear now activewear and streetwear, but retailer and brands do need to better plan their inventory based on global warming. We also believe that the streetwear trend will help some of the outdoor brands gain a younger audience. Momentum will also come from increased collaborations with trending streetwear brands.

In our recent shop of Dick’s Sporting Goods (NYSE:DKS) we believe they have been able to strategically plan their inventory of outerwear as we noted a controlled environment of inventory and markdowns within the category.

We expect the outdoor influence to continue particularly in menswear through 2017 as we have noted more luxury brands relax their styles and nod more towards outdoor styles during the recent menswear fashion week.

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