Arbit Weekly Sneaker Digest

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Sneaker Economics: Who Are the Resellers?

The Jordan 1 Retro High OG Royal Reimagined has been in the news lately with pairs sitting on the Nike SNKRS app and getting discounted at retailers less than a week after official release. Despite signals that market supply (rumored to be 1M+) is significantly surpassing demand, sales volume is strong on the resell market. This is true even as pairs sell below retail (-6% price premium over the last two weeks), which begs the question, who is reselling these? 🤔 And who is reselling the many other popular recent releases moving for below retail right now?

Though the rise of resell has been associated with large price premiums, the strong sales volume for sneakers reselling for below retail, like the Royal Reimagined 1’s, suggests the market is now serving other goals as well. Coop

Sneaker Economics: Buy Collabs… Except Yeezy’s

Last week, we compared historical average sales price of sneaker collaborations with brands and non-collaborations and saw that the market clearly values collabs. This week, we removed Adidas Yeezy’s from the data and the disparity in prices between collabs and non-collabs is even wider. Non-collabs are trading at all-time lows going back to 2017—average 7% price premium. In short, collabs are a buy, except for Yeezy’s. Natalya

Buy-Hold Recommendations

BUY

Jordan 12 Retro Stealth (CT8013-015) The Stealth 12’s have shown strong resell liquidity over the past 14 days. Some of this interest may be related to the recent release of the Cherry 12’s. With an attractive entry price point, the Stealth should be a solid performer, particularly for resell in physical consignment shops. Bempah

HOLD

Jordan 4 Retro Lightning (2021) (CT8527-700) In this market, it’s about identifying sneakers that won’t fall in value. Based on price history and liquidity, the Lightning 4’s are a solid bet. While the majority of sneakers on the market are trading below where they traded two years ago, these have traded right in line with their past performance, pulling a 30% price premium over the last 14 days. This coupled with solid sales volume makes them a pair I’m okay with staying invested in. Natalya

-Team Arbit #trusttheprices

ABOUT ARBIT: Arbit is an AI platform that sneaker buyers and sellers can use to make smarter transactions in the resell market.👟🤑