Sporting Goods Spending Drops 9% as Inflation and Tariffs Hit Middle-Income Consumers — Consumer Edge Holdings, LLC

Event summary

U.S. sporting goods spending declined by 9% year-over-year in the three months ended January 2026, driven by inflation, tariffs, and middle-income consumer pullback.
Experiential retail formats like DICK'S House of Sport and lifestyle-driven brands such as Salomon gained traction amid broader category slowdown.
High-income shoppers continued to support premium sports retailers (e.g., Backcountry, Evo), while middle-income consumers cut discretionary spending.
Tariffs on steel and aluminum contributed to double-digit declines for hunting/fishing retailers like Sportsman's Warehouse and Brownells.

The big picture

The sporting goods sector is undergoing a structural shift, with demand consolidating around premium experiences and lifestyle-driven brands while traditional discretionary spending weakens. Retailers exposed to tariffs or middle-income consumers face the most pressure, while experiential and niche-focused players may gain share. The divergence in regional performance suggests localized strategies will be critical moving forward.

What we're watching

Premiumization Trend: Whether high-income shoppers will sustain demand for premium sports categories amid broader economic pressures.
Experiential Retail: The pace at which experiential retail formats like DICK'S House of Sport can offset declines in traditional sporting goods spending.
Regional Disparities: How Western U.S. retailers such as Big 5 Sporting Goods will adapt to steeper spending declines compared to other regions.