A New Trend is Breathing Life into an Old Brand -- $SKX
September 30, 2022
A new sport is taking the heart of the country by storm.
Popularity is surging in smaller big towns in Middle America. We’re talking Des Moines Iowa, Columbus Ohio, Madison Wisconsin, Boise Idaho.
What sport are we talking about?
Consumer mentions of playing pickleball – a cross between Tennis and ping pong – have risen by more than +224% YoY.
This matches industry stats, which logged more than a million new pickleball players over the last 4 years.
I personally describe this game as *Tennis Lite ™.
Why do players love it?
It’s social (you can play singles or doubles) and it requires less technical skill, athleticism, and overall energy output vs. a true tennis match.
Translation: this is a game suitable for all ages. But it does lend itself to a specific generation: boomers.
The largest demographic of “pickleheads” are players 55+ -- though the average age IS falling each year amid widespread adoption.
As investors we know – SOMEONE must be benefitting from this rapid rate of pickleball adoption.
After all, new players need all new gear – from paddles to tennis, er pickleball, shoes.
Which company is benefitting the most according to LikeFolio data?
The answer may surprise you…
Skechers (SKX) is Capitalizing on Pickleball Popularity
Earlier this summer, Skechers announced multi-year sponsorship agreements with Intersport and the Association of Pickleball Professionals (APP) Tour, USA Pickleball, and Major League Pickleball (MLP) making it the official footwear company of each organization.
Lot of buzz, to be sure. But is it moving the needle in regard to actual purchases?
Consumer mentions of purchasing Skechers turned a corner in the last two quarters and are still gaining momentum.
When you think about it, this makes sense. After all, Uncle Bud is already a big fan of Skechers…why WOULDN’T he spring for a pair designed for his new favorite pastime.
Even King James is taking notice.
We’ll be monitoring this trend moving forward…especially as it relates to other potential winners in our coverage universe.
But we love that we can see a major consumer trend AND brand partnership playing out in real-time. LikeFolio data is powerful.