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Performance
Sports
RETAILER
News and Information for the Running and Triathlon Market
A SportsOneSource Trade Publication
November 2007
Hi-Tec Enters
U.S. Running Market
Hi-Tec Sports USA and Bordan Shoe Company
have entered into a licensing agreement to sell
the Hi-Tec Athletic brand of footwear within
the United States and Canada. The Hi-Tec
Athletic brand has been doing business in the
European market for years and the company is
looking to Bordan Shoe Company to carry the
brand into North America. Hi-Tec Athletic will
launch in Spring/Summer ‘08, and will feature
product for running, trail running, walking and
cross training. Target distribution points include
sporting goods, big box/family footwear and
specialty athletic retailers, with
orders slated to ship March
2008.
Bill Berta, president
of sales & marketing for Hi-Tec Sports USA,
says, “Bordan has strong existing relationships
with key retailers, and we believe they will
apply the appropriate resources to develop a
successful athletic footwear business for HiTec Sports USA.”
Berta further points
out that “Running
and cross training
product have the most
immediate opportunity and promise. We have
a unique technology in our running styles with
4:SYS and we hope to expand upon that.”
Inside PSR
n Brooks takes another sustainable
step with BioMoGo
n The Athlete’s Foot sees Q3
comps decline
n Building a Running
Community with Elite Runners
and Walkers
n Winter Apparel gets stylish, but
its still all about the performance
Tunnel Vision:
Under Armour Opens Store
Under Armour made its first foray into branded retail with the opening of the Under Armour
retail store in the Annapolis Mall in Westfield, MD on November 1. The 4,500 square foot store
is located a short drive from the brand’s headquarters in Baltimore.
The exterior of the store is designed to give it the feel of a stadium. Unlike many of the
surrounding retailers in the mall, whose entryways are marked by large windows, Under
Armour’s exterior mimics the concrete walls of a stadium. The entrance is a tunnel and the
inside of the store offers the vibe of a stadium’s underbelly. The store clearly says “athletics”
and is targeted at core athletes who relate to the brand, according to UA execs.
“We want the consumer to experience what it feels like to be in an Under Armour
commercial,” says Kevin Plank, chairman and CEO, Under Armour, Inc. “We’ve built the
physical manifestation of the Under Armour brand. From our perspective, we look to this
store to make us a better retail partner, merchandiser and listener to our consumer. As for
our consumers, we hope they see the store as an extraordinary and authentic Under Armour
experience. It will be like nothing they’ve ever experienced.”
EDITORIAL
Group Editorial Director
Judy Leand (646-654-5058)
[email protected]
Art Director
Sean Berthelot (646-654-5346)
[email protected]
Performance
Sports
RETAILER
News and Information for the Running and Triathlon Market
CONTENTS
November 2007
Managing Editor
Kris Versteegen (704-987-3450)
[email protected]
Contributing Editors
Andy Kerrigan, Cara Griffin
Matt Powell, Dr. Paul Langer
ADVERTISING
Account Managers
Robert Z. Feiner (646-654-4991)
[email protected]
Sam Selvaggio (646-654-7465)
[email protected]
Susan Tauster (630-858-1558)
[email protected]
8
News_______________________________________
President & CEO James Hartford
Chief Information Officer Mark Fine
VP Research & Development Gerry Axelrod
Director Information Management Ruben Desangles
Manager Database Operations Cathy Badalamenti
VP Business Development Bill Bratton
Eastern Business Manager Barry Gauthier
Western Business Manager Cyrus Severance
Controller, HR Manager Carol Wexler
4
6
7
© SportsOneSource, LLC
PO Box 480156 | Charlotte, NC 28269
704-987-3450 | fax: 704-987-3455
n adidas Group sees big 2008 gains after strong Q3.
n Suunto sees strong Q3.
nU
nder Armour inventory, slowing sales gains create angst.
n Garmin reports 24% rise in fitness/outdoor sales.
Features___________________________________
Other SportsOneSource Titles:
Footwear Business
Hunting Business
Outdoor Business
Sporting Goods Business
Sporting Goods Dealer
The B.O.S.S. Report
Sports Executive Weekly
Footwear Business Update
Outdoor Business Update
SGB Update
Team Sports Update
n Brooks takes another sustainable step with BioMoGo.
n The Athlete’s Foot sees Q3 comps decline.
n InSport lands $14 million marine contract.
8
10
12
Growing the Roots of a Strong Running Community Kevin
Smith is turning one of americas heaviest cities into a running mecca.
Winter Apparel gets stylish, but its still all about the performance.
Winter Running Apparel sees a short selling season.
Departments______________________________
14
Can Certain Running Shoes convert heel strikers into forefoot strikers?
Specialty NEWSwatch
Brooks Takes Another
Sustainable Step with BioMoGo
4
Brooks has decided to take its
sustainability commitment one
step further and will launch a
new biodegradable midsole,
called BioMoGo. The midsole
will biodegrade 50 times faster
than conventional athletic shoes.
BioMoGo midsoles include a
non-toxic, natural additive that
encourages anaerobic microbes
to biodegrade nutrients into reusable
byproducts. While Traditional EVA
midsoles can last up to 1,000 years in an
enclosed landfill, BioMoGo can biodegrade
in roughly 20 years when placed in the
same environment.
“Brooks is focused on providing cradleto-cradle sustainable product solutions,”
says Derek Campbell, materials engineer for
Brooks’ Future Concepts team. “That means
making sure BioMoGo breaks down into
reusable nutrients that can nourish the earth
for generations to come.”
While there is a growing population
of consumers who make their purchasing
decisions based on sustainability issues,
the vast majority of consumers will usually
choose a more sustainable alternative only if
price and performance are not compromised.
From a performance standpoint, Brooks
claims that BioMoGo provides “more
cushioning, more rebound, a softer first feel,
less wear, and consistent performance across
varied temperature ranges.”
So, according to Brooks, without losing
durability or performance, BioMoGo
significantly lessens environmental impact
once retired shoes hit an enclosed landfill. By
using BioMoGo in its shoes, Brooks will save
nearly 30 million pounds of landfill waste over
a 20-year period. In addition, the company told
PSR that the cost of all materials and energy
required to make shoes gradually increases
over time, but BioMoGo will never serve as
the sole reason for price increases of Brooks’
running shoes. As such, the price of the Trance
8 will only go up $5 to $140.
“BioMoGo offers runners uncompromised
performance and quality in their footwear
while also reducing the impact shoes
have on the planet,” says Pete Humphrey,
vice president of footwear research and
The Athlete’s Foot Sees Q3 Comps Decline
NexCen Brands, Inc. said domestic sales at The Athlete’s Foot were down approximately
7% year-over-year, reflecting the softness currently being experienced across U.S. retail.
NexCen acquired TAF in November 2006. On the brighter side, TAF’s international stores,
which constitute 62% of its retail base, posted an approximate
20% increase in comp store sales, much of it attributable to strong
demand, good operators and limited competition.
On a conference call with analysts, NexCen Brands
president and CEO Bob D’Loren said TAF entered into a
number of key agreements during the quarter including one
with Li & Fung USA to manufacture and distribute the TAF branded apparel line, Taftec.
The first shipments of Taftec are expected to reach retail in spring 2008.
TAF also entered into a definitive agreement with a franchisee to open twenty stores
in Mississippi and later this month, it expects to open its first TAF performance store in
Alabama, as well as its first TAF urban premium store in Cleveland. In addition, TAF
recently completed a ten store area development agreement in Sweden.
Overall, TAF, which has 325 franchised stores, plans to add approximately 180 stores
through the end of 2008. Overall, revenues for NexCen Brands increased 28% to $11.3
million. Net income improved to $117,000, or less than one cent a share, against a net loss
of $245,000, or a penny a share, a year ago.
development at Brooks Sports,
Inc. “Introducing BioMoGo
into our collection is just one
way Brooks is doing its part
to ensure our customers
have a healthy environment
for the long run.”
Although the application
of BioMoGo technology to
footwear involves valuable
intellectual property, Brooks decided at the
outset that it would treat its new midsole
discovery as an “open source” innovation.
“We strongly believe that by sharing
BioMoGo with other footwear companies,
and other companies in general, this
technology can make an even larger impact
on the world we all share,” said Jim Weber,
president and CEO of Brooks Sports, Inc.
BioMoGo will make its debut in the
Trance 8 on July 1, 2008. All shoes in Brooks’
performance running line will incorporate
BioMoGo by the end of 2009. BioMoGo is the
latest project Brooks has initiated to support
its sustainability focus. Other examples
include incorporating the CMP process,
introducing HPR Green rubber, reducing
PVC, developing a new environmentally
friendly shoe box, and scrutinizing its printed
collateral pieces and vendor partners for their
environmental impact.
InSport Lands $14 Million
Marine Contract
InSport was awarded a $14 million
contract to make running suits for the
Marine Corps. Insport will be outfitting
every Marine with this new addition
to the sea bag in early 2008. Marine
Corps officials estimate that 125,000
running suits will be produced in 2008,
and another 125,000 in 2009.
“We are simply thrilled,” said Peter Soorenko, general manager of InSport. “The fitness demands placed
on Marines are second to none. To be
selected to ensure that they can meet
these rigorous demands through this
specially designed training uniform
speaks volumes to the quality of our
work here at InSport.”
Performance Sports RETAILER
contact one of our agents of style for promotional details | insport.com
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Specialty NEWSwatch
adidas Group Sees
Big 2008 Gains After Strong Q3
The adidas Group posted a decline in top-line sales for the third
quarter, but the numbers were greatly impacted by currency
fluctuations and continued declines at Reebok. The group again saw
a fairly healthy improvement in the brand adidas business in the third
quarter offset by declines in the Reebok
and TaylorMade-adidas Golf businesses. Still, the business was hampered by a
continued tough mall retail environment
in the U.S. and group management took
additional steps to re-position and reprice the iconic Superstar shoe.
Currency fluctuations had a negative impact on reported
revenues. Currency-neutral sales were up 3% for the period.
Another strong double-digit increase in the bottom line can
be traced to growth in the gross margin, which improved to
48.6% of sales. Net income increased 22.2% to $410 million
or $1.88 per diluted share.
North America sales declined 9.0% to $1.13 billion in the third
quarter. For the third quarter, brand adidas sales in North America
were down 2.9% to $465 million. The Sport Performance business
continues to carry the torch for the adidas brand, growing 4.4%
in Q3 to $2.18 billion. Management said that YTD growth was
driven by all major categories except football (soccer), with
“particularly strong” increases in running and training. Brand
adidas performance category backlogs in North America were up
Suunto Sees Strong Q3
A crowd shot from the pre-NYC Marathon party Brooks hosted
on November 3rd. The bash was in honor of the Hanson brothers.
No, not the dorky hockey brothers from the Slap Shot movie or
the Hanson kids who came up with the “MMMBop” hit, but the
two brothers who started the Hansons-Brooks Distance Project,
an elite running group sponsored by Brooks. Thirteen members
of the team competed in the U.S. Olympic Team Trials in NYC on
Saturday and nine finished in the top 30, including Brian Sell, who
finished third to earn a spot on the 2008 U.S. Olympic Team.
6
in double-digits at quarter-end. Owned-retail sales for brand adidas
were up 21.0% to $476 million. Based on the 16% currency-neutral increase in brand adidas
backlogs at quarter-end, which was said to be the largest backlog
gain in over nine years, management increased full-year expectations
for the adidas brand, now expected to increase revenues in the highsingle-digits for the year on a currency-neutral basis, compared to
previous expectations in the mid-single-digits.
Reebok division revenues were up approximately 0.8% to $1.00
billion from $992 million in the year-ago period. Reebok brand sales were off 0.7% in U.S. Dollar terms for the
period to $787 million from $793 million in the year-ago period. The
Rockport business was up 1.7% in U.S. Dollar terms to $115 million
for the quarter, compared to $113 million in Q3 last year. For the Rbk/
CCM business, which also includes Koho and JOFA, sales increased
10.5% to $96 million versus $87 million in the year-ago period.
Management suggested that the Foot Locker pull-back on forward
orders represented roughly eight points of the 22% currency-neutral
backlog decline for Reebok footwear in North America.
The group is maintaining its guidance for the Reebok and
TM-aG divisions, with Reebok expected to post a low-singledigit currency-neutral increase for the year. In 2008, adidas
Group revenues are forecast to increase at a high-single-digit
rate on a currency-neutral basis. Net income will grow at a
higher rate compared to 2007.
Suunto, a division of Amer Sports,
reported that third quarter net sales
increased 18% to $29.7 million on
strength in their wrist top computer
sales. This
growth was
primarily
driven by the company’s new T-Line
of training computers, their new
women’s specific line, and the new
Core line of outdoor computers. Sales
were strongest in the Europe, Middle
East and Africa region, followed
by the Americas and then by Asia.
Management said that Suunto’s
net sales are expected to increase
in 2007 following the new product
launches. The division’s earnings
increased 40% for the quarter to $1.9
million compared to $1.3 million last
year. Overall, Amer Sports’ net sales
decreased 2% to $636.1 million. In
local currencies, sales were flat with
the previous year.
Performance Sports RETAILER
Under Armour Inventory,
Slowing Sales Gains Create Angst
Under Armour, Inc. shrugged off a very
sharp increase in inventories at the end of the
third quarter as a strategic planned increase,
convincing Wall Street to give them some
more time to prove out their model that has
relied on very rapid
sales growth since
the company was first
founded. The overall
revenue growth trend slowed a bit in the third
quarter versus the third quarter results last
year, a 46.3% improvement this year versus
47.5% last year, but the trend resulted in much
the same -- increased guidance for the year.
The company increased overall revenue
expectations for the year to $590 million
to $600 million, an increase of 37% to 39%
over 2006, and $10 million more than the
previous forecast. Income from operations
is now expected to be in the range of $81.5
million to $83.0 million, an increase of 42%
to 45% over 2006, versus the previous forecast
that estimated operating income in the $79.0
million to $81.0 million range. Still, analysts
were a bit concerned with the slower growth
expectations for the fourth
quarter of this year, given the
fact that inventories had doubled
at the end of the third quarter.
The angst comes in part from
Under Armour’s forecast, based
on sales at retail in September
and October that would see fourth
quarter sales in the range of $158
million to $168 million, or growth
limited to a range of 17% to 24%
versus the 55% growth seen in
the fourth quarter last year.
For the third quarter, the
men’s apparel business was up
nearly 43% this year, versus 38%
growth in the year-ago period,
fueled no doubt by an expanding
business in Europe and moves
into new categories of business
such as golf, outerwear and
other outdoor apparel. Average
selling prices for the overall
apparel business were up 11%
for the third quarter.
Compression still continues
to grow at double-digit rates,
according to Under Armour
chairman, president, & CEO
Kevin Plank, but he also said that the men’s
training category grew faster than the overall
compression business, up nearly 60% year-todate, and the golf business was up more than
140% year-to-date. Still, the men’s apparel
business did make up a bit smaller slice of
the Under Armour pie in the third quarter this
year as the other genders and non-apparel
categories once again grew at a more rapid
rate this year.
Men’s apparel represented 60.5% of
total Q3 sales this year, compared to 62.0%
of overall sales in the year-ago period.
Women’s apparel, which also outpaced
growth from last year by nearly two
percentage points, represented 21.1% of
total UA third quarter sales this year versus
20.8% in Q3 last year.
Footwear was hardly mentioned on the
quarterly call with analysts except for talk
about the performance trainer launch scheduled
for late spring 2008. The accessories business
doubled this year, accounting for 4.1% of sales
in Q3, compared to 3.0% of total revenues in
Q3 last year.
Garmin Reports 24% Rise
in Fitness/Outdoor Sales
Garmin Ltd. said its outdoor/fitness sales
grew 24% to $88 million in the third
quarter and that retail orders indicated
holiday sales of personal navigation
devices, or PNDs, would be strong.
Outdoor/fitness
was the second
largest
and
third fastest growing of Garmin’s four
segments, which generated a 79% sales
increase to $729 million. The company
sold 2.7 million units during the quarter
with unit shipments up 97% year-to-date.
The company described its initial
order book for the holidays as strong
and said its research indicates it holds
50% of the U.S. market for PNDs.
The new eTrex and Rino products
drove growth in the outdoor/fitness
segment. Garmin also began shipping its
new Forerunner50 speed and distance
watch; its first fitness product to offer
wireless connectivity for downloading
workout information to Garmin’s fitness
website. The company expects year-onyear sales growth in the segment to slow
to 15% in Q4.
The company reported net income
rose 57% to $193.5 million, or 89 cents
per basic share. Gross margins fell
183 basis points to 47%, while selling,
general and administrative expenses
rose 31 basis points to 11.95% of net
sales. Executives said they expected
revenues to hit $2.9 billion in 2007 with
earnings per share to exceed $3.40.
Outdoor/fitness sales are projected to
grow 10% for the year, the slowest of any
of the company’s segments.
7
Specialty FEATURE
Growing the Roots of a Strong Running Community
8
Kevin Smith is Trying to Turn One of Americas Heaviest Cities into a Running Mecca,
One Pair of Shoes at a Time
By Kris Versteegen
I
n 1999, Kevin Smith was working for May Department
Stores. That summer, he ran his first marathon in honor of
his younger brother who had died from Leukemia four years
earlier. Smith suffered the entire time because, he says, his shoes
were not properly fitted, but he finished. Six months later he opened
the doors of his own specialty running shop, Elite Runners and
Walkers in Pittsburgh, PA.
“I had this great epiphany that Pittsburgh needed a running specialty
store, because I suffered through my first marathon. The guys that sold
me my first pair of shoes were supposed to know something about fit
– they worked for a larger chain in the area, but they fit me based on
my body size, not my foot type,” Smith says. “I am a fitness enthusiast
and I used to run as much as I had to, to stay in shape. I always ran
when I played Hockey, so my running was a means to an end. I got
involved with long-distance running when my younger brother died
of Leukemia in 1995, and that’s when I got involved with Team In
Training. I am still heavily involved with the Leukemia Society today.
In fact, I now manage and own the second largest running race in
Pittsburgh as a result of my involvement there.”
Smith worked his way through many challenges and used his
retail experience with May Department Stores to build a community
around the running culture. Every weekend he would hit the road
and set up a booth at a local race to tell runners about his store.
Afterwards, he would drive back and open the store.
“The biggest challenge in opening a running store in this market
is that there really wasn’t a true running store here. Pittsburgh
didn’t have a running store that was all about the mechanics and
service and not about the price. There were a couple of chain stores
here that serviced runners, but they drove a lot of their business
on price, and they still do. So the biggest challenge for me was
establishing what a running store is,” he says. “So I spent a lot of
time training people to buy on service, not on price. Now that we
have that established, I run very few sales. We really have changed
the concept of how to buy shoes from ‘what’s on sale today’ to
‘what is the right shoe for me, no matter what it costs.’”
Smith faced a second challenge that arose from his location - big
box competition. “Dick’s Sporting Goods’ flagship store is about
a mile and a half from the front door of my shop and the corporate
headquarters are about five miles away. I actually have some of
the folks from Dick’s come in here quite a bit,” Smith says. “They
stop by to see what we’re doing. They tried to launch a running
specialty shop-in-shop in about 25 of their doors and most of them
were in the Pittsburgh market. It really didn’t impact my business
at all. You know, at first it was a hard challenge to convince people
Performance Sports RETAILER
“
“
His store focus is to service anyone coming through the door,
whether they are there because they are starting a
walking program or they are a high school kid coming
in to find shoes for the upcoming season.
– Rick Wilhelm
Brooks’ vice president of sales
to buy on service, but once they saw what we offered, they stopped
shopping anywhere else.”
Smith overcame both of these challenges, in part because of
the team he has assembled. “I hire the fast guys. I have on my staff
a gentleman who ran steeplechase for a Division I school, I have a
young lady who is the top runner for Duquesne University – I believe
she just qualified for Nationals last week, then her younger brother also
works for me and he runs for a DIII school here locally. The rest of my
part time staff are all marathoners or distance runners,” he says. “My
top employee is Justin DiIanni, he’s my store manager and then Mark
Tatum is right next to him. Those are the
two main people in the shop. However,
I really have trouble saying who the top
person is, because I rely on all of them in
different ways. Each of my employees
appeals to different people when they
walk in the store, so I really have a hard
time placing one above the other. Each
one fills a different niche and they are all
so different from me.”
Smith says that his most successful
marketing initiative has by far been his
involvement in races. “The first two summers, every Saturday and
Sunday I packed up my minivan at 6:00 in the morning and went out
to some race somewhere and set up a mini shop. I really got out into
the running community, in front of the runners and let them know
what I was doing and what my shop was about,” he says. “Then, just
one year into the business, I started organizing my own races. Each
year we’ve tried to add a new race or expand on one that we were
already doing. So, today we manage five races. We are also involved
with another 30 to 50 races that we are tied in pretty heavily with.
Then there are also all of the little races I am involved with where we
give out a gift certificate or some T-shirts. Every weekend there is a
race that I am somehow involved with somewhere in the city.”
Elite’s ability to build a community around running caught the
attention to the running industry as a whole. Brooks’ vice president
of sales, Rick Wilhelm says, “As his store name implies, Kevin
has been a great partner for Brooks, because he isn’t just a running
store. His store focus is to service anyone coming through the door,
whether they are there, because they are starting a walking program
or they are a high school kid coming in to find shoes for the upcoming
season. This broad range of customers makes Kevin a key specialty
dealer for Brooks, as he carries a wide breadth of our product line.”
Another area where Elite has seen success is in the medical
business. Smith says that the demographics of the Pittsburgh
Performance Sports RETAILER
area pushed him into the business. “I look at other running stores
around the country and each of them has their own demographic
challenges. Here, we trend towards being a little bit older and a
little less in shape. We are considered to be one of the oldest and
heaviest counties in the country. So, because of this, the medical
aspect of my business is huge. Keeping aging boomers in good
running shoes to keep them running is crucial.”
Elite also does a large portion of its business with high school
and college track & field teams. Smith explains how and why he
decided to go after the track & field market, “Right from year
one, we have always gone very hard
after the high schools. We believe
that if we establish running as a
lifestyle early, and we establish good
habits early, then we will create more
life-long runners,” he says. “Last
year we brought in close to 600
spikes. We go after cross country
and track alike. We also try to get out
into the community. Last week we
closed down for the cross country
championships and our whole staff
goes up there to cheer for the kids we take care of all year.”
Because of this type of dedication to nearly all facets of the
Pittsburgh running community, Smith has built a reputation that
has spread through several states. “We decided to try and make
one really great store that attracts people from all over. To an
extent we already do this. We pull people from at least a two to
three hour radius. People drive down from Erie; they drive up
from Morgantown, WV; they come in from Stubenville, OH. We
see people from as far away as State College, PA and Altoona,
PA,” he says.
The reputation has also helped the store grow. Right now,
Elite has a 900 square foot show room with about 1,200 square
feet behind. Next year, Smith will add a new section with another
1,200 feet of showroom and 300 square feet added to the back
room. “With the expansion I am hoping for about a 10% increase
in sales at first, and then we should ramp up with double-digit
growth each year after that,” Smith says.
With a strong presence in local events, track & field, and
a considerable amount of fit and medical experience, Elite
Runners and Walkers is addressing nearly every demographic
in the Pittsburgh area. With the expansion, Smith plans to attract
even more people to his store and to continue his efforts to keep
the city running.
9
Winter Apparel Gets Stylish
But Its Still All About the Performance
W
ith the days getting shorter and the leaves changing,
everyone’s thoughts go to long weekend runs on cool,
crisp fall days. Unfortunately, the bite of running in 10
degrees with a 40 mile per hour headwind is right around the corner
with winter weather looming. While most retailers change over
their floors from spring to fall in September or October, designers
are just finishing up next year’s assortment of apparel.
This year, many running apparel designers are opting for the
more breathable stretch-woven and soft shell outerwear fabrics
instead of waterproof-breathable laminates. While laminates are
great in full-on storm conditions, they tend to be too hot for any
conditions short of the most extreme weather.
The big trend in women’s apparel appears to be the knicker this
year, with several designers opting for the three quarter length cut,
which offers a more feminine look in the colder months.
According to many retailers and designers in the industry, style in
the men’s department is still very technology-oriented. If the apparel
shows off a new and effective visible technology, then it’s on-trend.
Light weight is another trend pushing innovation in the apparel
market, especially in men’s apparel, with designers finding new
fabrics that shave grams and ounces. This is an especially effective
story during the saddle months, when the weather can shift from 60
degrees and sunny to 38 degrees and raining in the blink of an eye.
The running consumer seems to be taking some trends from
the outdoor market in terms of fashion, and to some extent
performance. This year, insulated jackets are beginning to appear
in running stores as well. While this trend is somewhat driven by
fashion cues, there is also a performance story behind it. Quilted,
insulated jackets offer wind protection and warmth in a lighter
weight package than traditional fleece.
Specialty FEATURE
Brooks
The Aireplex Stretch Jacket is a lightweight, weatherresistant, stretch-woven jacket with built-in soft terry
wrist wipe. An MP3-ready pocket on the left arm and
two zippered side pockets for keys or I.D.’s complete
the package. The men’s Aireplex uses the same
fabric and features in a more masculine style.
The women’s Motion Stretch Knicker is a board
short-rise, stretch-woven “knicker” with side snaps
at hem for adjustable fit, and an invisible zip leg
pocket for keys and I.D.’s. Moisture-moving panels
at yoke and waist work with the Seattle Stretch
fabric to keep you dry. Saucony
The new women’s Optech Sportop is 100%
Polyester with a peached back fabric for next to
skin comfort. This 1/2 zip top works as a mid-layer
style with flat lock seams for added comfort or as
a stand alone piece.
The men’s Vapor-Dry 3D Splice Tight uses splices
of Vapor-Dry 3D at the back yoke and behind-knee
to move moisture away from hot spots. Small
details like a back center zip pocket for keys and
I.D.’s and reflective leg zippers with storm guards
complete the package.
The women’s Cha Cha Pant uses Power Knit fabric
for a soft, wicking, compression performance feel
with stretch support and recovery. A smooth front
waistband adds to the comfort and styling.
The new men’s Headwind Plaid Jacket uses
Saucony’s proprietary SonicLite fabric, the
brand’s lightest weight wind and water resistant
fabric. This style offers performance with the
added lifestyle element of the plaid.
10
Performance Sports RETAILER
Zoot
The new WRKS Long Sleeve Tee
uses Thermalzone technology with
strategically placed three-layer
wind and water protection panels
to shield runners from the elements
while offering core warmth where
it’s needed most.
New Balance
The Train Zone Seamless Top is made
with meryl skinlife nylons which prevent
odor by maintaining a natural balance of
bacteria on the skin. A super soft hand
prevents chafing in any physical activity
Sugoi
The Helium uses ultra-lightweight
woven polyester that results in a
jacket that weighs only 3 oz. and
still maintains high water and
wind repellency while maintaining
breathability. The jacket includes
a 3M Scotchlite reflective band
down the front to maintain visibility
in poor or dark running conditions.
In addition, the jacket features a
zip back pocket, ideal for portable
electronics.
The new Reversible Quilted Jackets for
Men and Women are ultra thin, quilted,
reversible, and wind resistant for the
coldest running days. The outer shell has
360 degree reflectivity and side pockets
as well as thumbholes for secure fit.
Craft
The Elite Softshell Jacket was
designed to offer total freedom of
movement while providing a micro
climate during winter workouts.
Two elastic polyester fabrics are
laminated together and combine
to provide full stretch, moisture
transport and water repellency
with 3D-construction and preshaped arms.
The Elite Run Tight uses an
ergonomic shape and cut with
bonded seams to create a flat look
and feeling. The tight compression
fit with 4 way stretch also gives
total freedom of movement.
Performance Sports RETAILER
11
Specialty FEATURE
Winter Running Apparel
Sees a Short Selling Season
12
W
ith the active lifestyle making headlines on television
and in magazines across the country, specialty running
retailers are seeing their business grow at rates
comparable to the golden age of running retail in the 60’s and 70’s.
At the same time, many specialty running retailers are trying to
diversify their businesses to rely less on footwear sales to drive
their growth. To do this, retail owners and buyers are looking to
increase apparel as a percentage of their sales.
According to data collected by SportScanINFO from over 17,000
retail doors, running apparel sales have increased in the mid-teens
for the year-to-date through November 8, 2007. However, in the
winter, selling anything can be a challenge, as many runners seem
to hibernate through the coldest months. However, for the truly
committed athletes, weather does not pose an obstacle, assuming
they have the right gear.
Because of the limited market for winter running apparel, the
selling season can be remarkably short, lasting a little more than two
months for some key items. Looking at sales on a weekly basis, it
become clear that running tight sales ramp up earlier in the year than
other items (see chart below), and the selling season lasts longer.
While the initial upward trend in all three categories begins
in September, the first real spike in sales only impacts tights and
long-sleeve performance tops. This spike occurs
in mid-October, which likely coincides with
the first real cold snap. The second and more
dramatic spike in sales is clearly due to the
holiday season with sales returning to more
normal levels by New Year’s Day.
From the end of the Holiday rush, sales for
tights flatten out until mid-March, when clearance
sales cause a slight spike before dropping off
rather dramatically into the spring. Long sleeve
tops do not see the same dramatic drop off, but
rather taper off throughout late winter until there
is a minimal presence in March. Performance
outerwear sales see strong activity in the preholiday and holiday period, with minimal activity
in the late winter and spring.
Performance Sports RETAILER
A multi-channel round-up of the
running business published
monthly by:
The
Report
and
SEPTEMBER 2007
MARKET OVERVIEW
x For the five-week fiscal September period, Running Footwear sales increased in the low-teens in dollars and mid-singles in units in the Sports
Retailer trade channel.
x Road running product sales increased slightly above the overall trends, while trail running was slightly below.
x Women’s Running sales, which account for approximately one-third of the market, were up in the high-teens in dollars for the fiscal month, but
men’s sales fell in the mid-singles in dollars and mid-teens in units.
RUNNING FW MARKET SHARE ($)* -- Sporting Goods
SEPTEMBER
This Yr*
Point Chg
YTD
NIKE
63.5%
+14.53
NIKE
ASICS
12.3%
-1.97
AMERICAN S.G.
0.4%
+0.22
x In the
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NEW BALANCE
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TOP SELLERS -- RUNNING FOOTWEAR -- Sporting Goods
Top Sellers for SEPTEMBER -- Units
Rank
Brand
1
NIKE
2
ASICS
3
NIKE
4
NIKE
5
ASICS
6
ASICS
7
NIKE
8
NIKE
Style
Top Sellers for SEPTEMBER -- Dollars
ASP
Rank
$27.17
1
NIKE
M GT-2120 WHT/NVY/GLD
$84.04
2
ASICS
M GT-2120 WHT/NVY/GLD
$84.04
W DART V EXTRA WHT/ROSE
$42.79
3
ASICS
W GEL-2120 WHT/PLAT/NVY
$87.58
M AIR MAX TORCH BLK/BLK/SLV
$74.12
4
NEW BALANCE
M992GL D
$125.02
W GEL-2120 WHT/PLAT/NVY
$87.58
5
NIKE
M AIR MAX 90 LEATHER BLK/BLK
$87.82
W GEL-1120 WHT/BLU/BLK
$70.31
6
NIKE
M AIR MAX 90 LEATHER WHT/WHT
$88.46
W AIR TRI-D BLK/PNK
$56.66
7
NIKE
M AIR MAX TORCH BLK/BLK/SLV
$74.12
W SHOX CLASSIC WHT/GREY
$107.26
8
NIKE
M SHOX CLASSIC WHT/WHT
$109.01
K ATTEST VIII WHT/RED/NVY (GS)
Brand
Style
W SHOX CLASSIC WHT/GREY
ASP
$107.26
9
NIKE
M AIR MAX 90 LEATHER BLK/BLK
$87.82
9
ASICS
W GEL KAYANO 13 WHT/BLK/SLV
$120.59
10
NIKE
M AIR MAX 90 LEATHER WHT/WHT
$88.46
10
ASICS
W GEL-1120 WHT/BLU/BLK
$70.31
The Running Report is produced each month by analysts and editors at The
SportsOneSource Group exclusively for SportScanINFO subscribers and retail
reporting partners. All data is compiled utilizing SportScanINFO’s comprehensive platform that presents weekly retail POS data across the Footwear. Apparel,
Licensed Products, Hardgoods, and Outdoor market segments. For more information regarding Custom Reports, contact your Regional Business Manager or
contact us directly at [email protected].
* Important Market Share Note:
SportScanINFO has added a large number of reporting retail rooftops
for 2007 which may make year-on-year comparisons of market share
difficult without utilizing additional data.
Please talk to your regional business manager with any questions on
the new expanded system.
Specialty MARKETwatch
Can Certain Running Shoes Convert
Heel Strikers into Forefoot Strikers?
14
By Paul Langer, DPM
I
f it hasn’t happened in your store yet, it
will soon and with increasing frequency.
Runners will come in asking for those
shoes that “make you run on your forefoot”
or “are like running barefoot.”
The latest marketing trend in running
shoes is about promoting a more natural gait
and mimicking barefoot running. This is
a significant departure from the messages we are used to hearing
about how runners need as much cushioning, support and energy
return as could be crammed into a shoe. The marketing messages
are starting to catch up to what gait research uncovered ten to
twenty years ago. Specifically, the cushioning and motion control
features of running shoes haven’t proven to be beneficial and that
barefoot running is more efficient than running in shoes. That’s
good news, but just because a shoe is manufactured with a less-ismore philosophy does not mean that it automatically helps runners
move in a more efficient manner.
Long before footwear was invented our ancestors were all
running on their forefoot (or midfoot) while they tracked and
killed game. We, on the other hand, live in a world where we wear
shoes before we can even walk and are surrounded by concrete and
asphalt. So our weak feet have become dependent on shoes and our
hard environment requires us to use some form of protection on
our feet. Our gait has changed because of this.
I want to preface the rest of this column by making a statement:
World Class runners are not efficient, because they run on their forefoot.
They run on their forefoot, because they are efficient. I emphasize
this, because the marketing messages coming from some footwear
manufacturers make it sound as though we can all magically change our
running style by simply putting on a particular pair of shoes. Bloggers
and internet chat rooms take this misconception and exaggerate it further
to the point where unrealistic expectations are touted as facts. In clinic, I
have to explain to some of my patients that expecting the shoe to instantly
make you a better runner is like a basketball player expecting a new shoe
to improve his jumping ability. If you lack the strength, biomechanical
efficiency, and conditioning to develop a forefoot strike pattern then the
shoe cannot instantly do it for you.
Performance Sports RETAILER
“
“
Is a forefoot strike running pattern more efficient
that a heel striking pattern? Under certain conditions it is.
But there are some important factors to consider that can
shed light on the contrast in different running styles.
Performance Sports RETAILER
this means is that it does not matter what kind of running
form the current marathon world record holder Haile
Gebrselassie runs with, if I mimic his running form I
would likely work harder than if I ran in the way that my
body prefers. With work however, my body’s preferred
movement pattern would evolve so that my running gait
might have some similarities to better runners.
Nike’s Free in the 7.0, 5.0 and 3.0 models are
progressively lighter, less stable, more flexible and less
cushioned. This might provide a way to gradually build
strength and running efficiency as a runner graduates from
the 7.0 to the 5.0 and then to the 3.0 over the course of a
few months. (some larger runners may not be able to run in
the 3.0) Newton, a new footwear manufacturer based in
Boulder, CO, has created a buzz in the triathlon and running
communities with their shoes, which they publicize as
“promoting the natural and more efficient forefoot strike
of barefoot running.” In addition, low profile trail running
shoes like those made by Inov8, are made with minimal
support and cushioning since trail running requires less
from the shoe and more from the runner in terms of balance,
agility and a forefoot running gait. These types of footwear
designs, used over a period of time can facilitate a more
natural running gait and help build strength.
So, for the runners seeking a shoe to instantly change
their running form, tell them that none exists. But if they
want to invest some time and effort, they can develop
a more efficient gait by making use of some unique
footwear innovations.
Specialty MARKETwatch
Notice I said “develop” a forefoot strike pattern – most
runners who are forefoot strikers become so as they improve
their running economy and increase their speed. (For the
sake of simplicity I will use the term forefoot striker when
referring to midfoot/forefoot landing pattern during running
gait.) Eighty percent of recreational runners land on their
heels when they wear running shoes but no one lands on their
heels when running barefoot, because it hurts to land on the
heel without shoes. According to the running coach, footwear
designer and author Robert Lyden, when running faster than
6:00 minutes per mile all runners become forefoot strikers.
Those of us who rarely run that fast may become forefoot
strikers by training consistently and allowing our running
gait to evolve – not by buying a certain shoe. However, there
are certain types of footwear that may be useful in terms of
helping us to build strength and efficiency.
The best way to make use of shoes designed to promote
a forefoot running style is to use them as a supplement to
conventional running shoes and not as a replacement. Nike
makes a point of describing the Free as a training tool and
not a panacea for faulty biomechanics. Used for shorter
weekly workouts, they can help develop a more efficient
running technique. Trail running and barefoot workouts on
grass or sand have been used for decades by many college
and world class coaches as a means for developing strength
and avoiding artificially hard running surfaces.
Is a forefoot strike running pattern more efficient that
a heel striking pattern? Under certain conditions it is. But
there are some important factors to consider that can shed
light on the contrast in different
running styles. A recreational
runner who averages 25-50 miles
per week and weighs 180 lbs. is
never going to have the same
running gait as a world class runner
who runs 100-150 miles a week
and weighs 130 lbs. In addition
to size/mileage differences, a less
obvious difference between all
runners is that our bodies selfselect the running pattern that is
most metabolically efficient for us.
Anything that causes a significant
change in that pattern will cause
our body to fatigue sooner. What
Paul Langer is a podiatrist and serves as
a clinical faculty member at the University
of Minnesota Medical School. He is a
memberof the Clinic Advisory Board of
the American Running Association and is
the author of Great Feet For Life: Footcare
and Footwear For Healthy Aging.
To order Great Feet for Life in your shop
visit: www.GreatFeetForLife.com.
15
Performance Sports Retailer 2007:Layout 1
4/12/07
4:42 PM
Page 1
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• Dramatically elevate your service • Incorporate state-of-the-art technology into your business
• Offer unique products, custom selected for your customers’ footcare needs
• Thrive in today's competitive marketplace by being better than your competition
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