New Pokemon Go good business for sneakers companies???
Seeking Alpha’s Paulo Santos was first to posit that the sneaker industry - Foot Locker (NYSE: FL) in particular - could potentially see increased profits from avid Pokemon Go gamers needing new, comfy sneaks. In his article, Santos offers an interesting breakdown of the potential for miles walked and other stats for Pokemon Go players, and ultimately, draws this conclusion:
As a curiosity, an additional 231.1 million miles walked per day, would come to an additional 84.35 billion miles per year.
At an estimated life of 350 miles/shoe, this would add sales of 241 million pairs of shoes per year. At $70 a pop, that would increase sales ~$16.9 billion in a market with an estimated 2015 value of ~$76.1 billion. This would point to 22.2% growth. Slower than the other estimate, because the assumption that all shoes are replaced/bought due to wear is highly unrealistic. At a $50 average price per shoe, the industry-wide impact would be reduced to +15.8% growth.
Other shoe and apparel stocks, like Nike (NYSE: NKE) and Sketchers (NYSE: SKX), could also be winners.
http://seekingalpha.com/article/3988820-pokemon-go-will-goog…
Crazy world this one!
Best
Maria