Consumer Edge’s Sporting Goods Outlook 2026 shows that U.S. spending on sporting goods fell 9 percent year‑over‑year in the three months ending January 2026, as tariffs, inflation and pressure on middle‑income households dented discretionary purchases.
The report comes after several consecutive years of strong outdoor participation, so the recent dip marks the first contraction in the sector’s recent history.
Premium experiences offset a broader pullback
Higher‑income shoppers continued to lift spend‑per‑customer, benefitting retailers that focus on premium activities such as skiing and golf. Brands like Backcountry, Evo and PGA TOUR Superstore saw stronger sales, while middle‑income buyers cut back on non‑essential gear.
Premium gear such as ski equipment and golf clubs carries higher average ticket sizes, helping offset weaker sales in lower‑priced categories.
Experiential retail also gained ground. DICK’S Sporting Goods’ House of Sport locations draw shoppers with climbing walls, turf fields and in‑store events that go beyond conventional merchandise displays. Outdoor brands that moved into everyday apparel and footwear, including Salomon, Rossignol and Evo, found particular resonance in the Northeast and Midwest.
By integrating fitness classes and community events, these venues create recurring foot traffic that supports both equipment sales and ancillary services.
Regional and sectoral variations
The Western United States recorded the steepest decline, with Q1 2025 data showing the sharpest drop in spending. Retailers such as Big 5 Sporting Goods feel the strain, while hunting and fishing outlets report double‑digit falls after steel and aluminum tariffs were imposed in 2025. Companies like Sportsman’s Warehouse, Brownells and Palmetto State Armory are among those cited.
The Western slowdown reflects regional economic pressures that have tightened discretionary budgets, leading retailers there to see tighter inventory turns.
In contrast, a new SCHEELS store in Tulsa, Oklahoma, vaulted the chain from zero market presence to category‑share leader within three months, squeezing rivals like Academy Sports + Outdoors and DICK’S Sporting Goods. Such rapid openings are reshaping local competition.
Gen Z shoppers, ages 18‑24, posted the highest growth in spend‑per‑shopper throughout most of 2025, bolstering niche‑focused brands such as Epic Sports and Proof Lab. Their preference for specialized communities hints at a shift away from mass‑market offerings.
Gen Z’s heavy use of social platforms spreads brand awareness quickly, turning niche communities into fast‑growing revenue sources.
Compared with earlier cycles of growth driven by broad outdoor participation, this slowdown mirrors past periods when economic headwinds forced consumers to prioritize core needs over hobby spending. The current pattern suggests that brands with strong identity and community ties may weather downturns better than those relying on volume sales.
“We’re seeing a shift in sporting goods spending,” said Michael Gunner, SVP of Research & Market Intelligence at Consumer Edge. “While total category spend has slowed, demand hasn’t disappeared – it’s consolidating around premium experiences, specialized communities and lifestyle‑driven brands. Retailers that rely on broad‑based discretionary demand are feeling pressure, particularly from middle‑income consumers and tariff exposure. Those investing in experiential retail and strong brand identity are most likely to capture growth.”
Industry watchers expect stores emphasizing immersive experiences and clear brand stories will outpace those that depend on broad, low‑margin product lines.