SGB PERFORMANCE 1124

JUNE 13, 2011

NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

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JUNE 13, 2011

NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

Photo courtesy of Brooks

Editor In Chief James Hartford (704.987.3450 x104) james@sportsonesource.com Senior Business Editor Thomas J. Ryan (917.375.4699) tryan@sportsonesource.com Editor/Analyst Kyle J. Conrad (704.987.3450 x111) kconrad@sportsonesource.com Creative Director Teresa Hartford Graphic Designer Camila Amortegui Advertising Sales Katie O’Donohue (704.987.3450 x110) katieo@sportsonesource.com Sean Hall (704.987.3450 x107) shall@sportsonesource.com Circulation & Subscriptions subs@sportsonesource.com Technology Chief Information Officer, Mark Fine VP Research & Development, Gerry Axelrod Manager Database Operations, Cathy Badalamenti

SportsOneSource Publications SGB

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TEAM Business

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Sportsman’s Business The B.O.S.S. Report Sports Executive Weekly SGB Update Footwear Business Update PSR Update Sportsman’s Business Update

NEWS

4 NEWTON RUNNING Gets Cash And Talent Infusion 6 BY THE NUMBERS 7 MOVERS & SHAKERS

Team Business Update SGB Weekly Team Business Weekly Sportsman’s Business Weekly Footwear Business Weekly Outdoor Business Weekly

FEATURES

8 LESS IS MORE With the minimalism movement showing no sign of slowing down, new brand offerings of many shapes and sizes are hitting the market for Spring 2012.

14 SPORTS BRAS, PART 2: The Changing Business of the Sports Bra Industry.

DEPARTMENTS

18 I AM... SGB PERFORMANCE Rick Wilhelm, Brooks Sports, VP Sales, Specialty Retail Accounts SportsOneSource, LLC 2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203 t. 704-987-3450 • f. 704-987-3455 www.SportsOneSource.com

Cover photography courtesy of New Balance Copyright 2011 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers & contributors to SGB PERFORMANCE are not necessarily those of the editors or publishers. SGB PERFORMANCE is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB PERFORMANCE may not be reproduced in whole or in part without the express permission of the publisher.

SGB PERFORMANCE is published monthly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704-987-3450. Send address changes to SGB WEEKLY, 2151 HAWKINS STREET, SUITE 200, CHARLOTTE, NC 28203; 704-987-3450.

WEEK 1124 SGBweekly.com

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NEWS

NEWTON RUNNING FINDS A NATURAL PARTNER The man that once built Reebok into the world’s top athletic footwear in 2009 (Hudson Jeans), is an $80 million fund today. He explained brand in the 80s has set his sights on the natural running category that the firm looks at investments in the $10-$50 million range with an investment in Newton Running. The with companies with an enterprise value in the Boulder, CO-based Newton brand, which expects $20-$30 million range on the low side to the to see revenues jump 70 to 80 percent this year, $100-$200 million on the high side. “We invest will get an initial cash infusion of roughly $20 in things we know,” said Fireman. million from Fireman Capital Partners (FCP), the Fireman confirmed that Newton had sales of investment firm run by Paul Fireman, the former approximately $10 million in 2010 and should end chairman and CEO of Reebok International, Ltd., 2011 with $17 to $18 million in sales. He said and his son, Founding Partner Dan Fireman.

Newton is in 250 running specialty doors today.

Fireman sold Reebok to Adidas Group in early The Fireman Capital Partners investment 2006 for $3.8 billion. portfolio also includes Hudson Jeans, Evolution “Newton Running is the footwear partner we’ve Fresh, Serena & Lily, IdeaPaint and Pilla. FCP been seeking for quite some time. It’s a brand points to their rebranding efforts for Hudson Jeans that is disruptive in the marketplace, authentic an example of the firm’s expertise and unique and driven by technology,” said Dan Fireman in ability to help clients grow. a release. “This new investment speaks to the Breakaway Partners, which is managed by Paul Fireman, Chairman Fireman Capital Partners core of Fireman Capital Partners heritage and former Reebok executive Dennis Baldwin, is coexperience. We took Reebok from a fledgling UK running shoe brand investing in the transaction and working closely with the company on and built it into a multi-billion dollar global business. Our expertise strategy, branding and marketing. Baldwin and another former Reebok in design, development, sales and marketing will help bring Newton executive, Steve Liggett, who ran product development, manufacturing Running to the next level and beyond.” and marketing for 15-plus years at Reebok, will represent Fireman In an exclusive interview with SGB Performance, Dan Fireman said Capital on the Newton Running board. Baldwin was formerly chief that FCP, which was founded in 2008 and made its first investment marketing officer at Reebok and also SVP global footwear at Reebok.

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SGB PERFORMANCE l JUNE 13, 2011

​ Breakaway currently has approximately $50 million under management and ​provides venture capital and strategic branding and marketing services to high growth consumer brands. Other investments include Ruelala, Ideapaint, Mission, Truefit and Moobella. ​​ “I see the continued growth of natural running as a long-term trend, while minimalist shoes have a place in the market, they also ignore the issue of protection when running on hard surfaces,” explained Baldwin. “Newton’s differentiator is that its design promotes natural running form while providing energy return technology in the forefoot strike zone to reduce impact force and increase efficiency aka run faster with lower risk of injury.”

While Baldwin and Fireman both recognize the current opportunity in the natural/minimalist category, they see a particular advantage with Newton because it started in the category.

“Newton’s advantage is that all it does is create shoes to promote natural running form,” said Baldwin. “We do not need to explain away decades of building high heeled running shoes that cause inefficient heel striking, pronation, excess impact force and injuries, etc.”

‘Why would Nike, or any other running brand, invalidate years of marketing and product development around motion control, stability or other technologies,” suggested Fireman when explaining the predicament other brands may find themselves in when talking to the consumer about natural running. “Newton’s advantage is they don’t have any history in those other technologies.”

Fireman said the opportunity for Newton also resides in the ability to create more visibility of the natural movement characteristics of the shoe. Fireman sees redesigning the shoes so the technology is evident, much like the Nike Air or Reebok Pump shoes. Reiterating comments made by his father in another published interview, Dan Fireman said the Newton product today tends to look like every other running shoe on the wall. “We will draw some technology out in the forefoot,” he said. “The design will better emphasize the natural movement aspects of the product as different and innovative.”

Speaking with SGB Performance, Newton’s CEO, co-founder an early investor Jerry Lee, confirmed he and Danny Abshire, who co-founded the business in 2005, will retain a majority stake in the company while also confirming the size of Fireman’s group’s investment.

Lee said that the company began exploring a possible equity investment in late 2010 as it sought a way to sustain the brand’s strong growth.

“As we continued to project our growth, there was a need for a tremendous amount of working capital,” said Lee. Equally important, however, Lee noted that he and Abshire had built the company themselves through a grassroots approache ​“and we were looking to add a partner with some experience in ​the footwear business to avoid those pitfalls that can be very costly. We were looking to bring an asset to the company as well as money.”

Jerry Lee, CEO & Co-founder of Newton

Lee also said Newton wasn’t looking for a larger shoe company because he felt ​​that a merger would likely ruin the culture of the brand and organization. “We have built the company with a lot of passion and strong beliefs but we’re also having a lot of fun and enjoying it. To turn it over to someone who doesn’t have that same passion, the whole vision had the potential to get lost.”

Lee said Newton came down to a limited number of suitors in the end and they grew increasingly comfortable with FCP. “Their expertise in the business immediately became clear and I also saw we shared an excitement for the company and I saw the passion that Paul still had for footwear,” said Lee. “As we explored how the partnership would develop we found we would be able to engage people who were very instrumental in the Reebok world.

Then we talked about philosophy and direction and we were all on the same page. It all came together.”

But, he said, Paul Fireman particularly shares a passion for the opportunity around natural running.

“We’re aging as a society and people that have been running for a long time are sustaining injuries,” said Lee. “The concept of natural running was basically unheard of before we started but now there’s books like Born to Run and all kinds of studies saying the best way to run with less injuries and less impact is the natural running technique. That’s something Danny and I started the company on and Paul shares the same vision.”

Moreover, he said Fireman will help broaden Newton’s technologies by introducing them at lower price points. The plan is to expand Newton Running’s product offerings to include lower-cost shoes in the $80 to $100 range. The company’s shoes currently retail for $135 to $175.

“It’s going to be less on performance and more about guiding the foot in the proper position as well as providing less impact on foot WEEK 1124 SGBweekly.com

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BY THE NUMBERS strike,” said Lee. The lower-price options are targeted to reach the market in late 2012 or early 2013.

Lee also said Paul Fireman, with his own charitable reputation, was a big believer in social responsibility and giving back to the community that has become an early hallmark of Newton.

Growing up with limited means in a family of 15, Lee considers himself “very fortunate” that someone helped his Dad buy his own house when he was young. After earning a good living in the real estate market, Lee became a dedicated advocate for affordable housing in the Boulder area. After Lee ​survived a prostrate cancer scare, Newton launched an initiative to raise $100,000 at the ​2010 Ironman Canada through Athletes For A Cure (AFAC). Newton also supports One World Running, which sends excess shoes to Haiti and Cuba as well as Trickle Up, a New York organization that advocates micro-loans to women in third-world countries. ​​Lee expects the Firemans will be totally engaged with the company. “Dan Fireman is the managing partner and watches over all investments and Paul is the chairman,” said Lee. “Paul has great passion and he will be very involved. We have had several meetings and we’ll continue to talk. This is something Paul knows and is very passionate about and he will be involved at that level guiding us. Paul is very visionary and that is what he is helping us with.”

No management changes are expected and the company will remain in Boulder, CO where its warehouse and R&D team are located. Said Lee, “It’s the running mecca of the world in our opinion and it’s where we belong.”

Regarding the sweeping natural/minimalism movement, Lee believes that although barefoot mania obviously speaks to its need and potential. P​eople need to better understand the challenges of running barefoot style “in what were calling the unnatural world.”

Barefoot running is relatively easy when running on trails in Africa or Mexico, but the majority of runners are dealing with concrete and asphalt, broken glass and other debris. That leads to injuries amid the phenomenon. Lee believes Newton Running, which provides both protection and 42 percent less shock upon impact, has the only shoe with the technology to resolve these issues and likes Newton being at the forefront of a movement enabling people to run healthier. “As long as you get the right running style and the right shoes, the opportunity for runners is endless as far as running injury free, recovering faster and enjoying running for the rest of their life,” said Lee. Looking ahead, Fireman told SGB that the walking and crosstraining categories would be good opportunities for the brand’s expansion.

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SGB PERFORMANCE l JUNE 13, 2011

$2.13 billion

Under Armour’s targeted revenue goal by 2013. The lofty projection to reach the $2.13 billion mark, made by company Founder, Chairman and CEO Kevin Plank at Under Armour’s investor meeting on June 9, would assume a compounded annual growth rate (CAGR) of 26 percent. The growth plans will rely on continued growth in apparel and continued expansion in the direct-to-consumer (DTC) business through 2013.

Plank said the DTC business, comprised of Internet sales, outlet stores and brand stores, would reach 30 percent of the business by 2013 from 23 percent currently. UA will have 80 owned-retail doors this year.

The Direct business was said to be margin-rich, with gross margins in the 60 percent neighborhood.

10.2%

Jump in sales for Forzani’s Wholesale segment in Q1, which benefitted from stronger sales to third parties and franchisees. Total sales for Forzani inched up just 0.7 percent to $338.5 million for the quarter; however, as the company’s larger Retail segment saw revenues fall 3.5 percent due to cold weather, which delayed spring purchases, and tough comparisons against a year-ago period that was propelled by strong sales of high-margin Team Canada gear.

66.3%

Jump in Q3 sales for Skullcandy, Inc., which is in the midst of a $125 million IPO. The company said the increase includes a $4.9 million increase in international net sales and a $4.0 million increase in net sales to large national retailers, including Best Buy and Target, driven by increased volumes to existing retailers and the addition of new retailers.

19.0%

First quarter jump in same-store sales for yogathemed retailer Lululemon, which has also reported a 70 percent plus jump in profit during the period.

On a conference call with analysts, Lululemon CEO Christine Day said the quarter came in better than projected as the retailer was able to overcome low inventory levels. While February was strong, inventory constraints held back sales in March before April showed a rebound as the company successfully chased and refilled inventory levels. The improvement was also attributed to maximizing the productivity of the inventory on hand both in sales and gross profit dollars. With the focus on productivity, Lululemon’s trailing 12 month’s average sales per square foot in comp stores reached new highs, to just over $1,800, up from $1,428 in the year-ago period. “We believe there is room for continued productivity increases as we build our inventory position, invest in our stores and our people, and execute our strategy,” added Day.

MOVERS & SHAKERS Nuun & Co. appointed Mason Reay as its new president. In this role, Reay, who joined Nuun in 2010 as head of marketing, will expand his responsibilities to include oversight of finance, customer support, and business operations.

Matthew Rubel has resigned as director, chairman of the board and an officer of Collective Brands, Inc., parent company of Payless ShoeSource, Keds and Saucony, effective immediately. Michael J. Massey has been named the interim CEO and former Nike and Oakley executive Scott Olivet has been named the company’s non-executive chairman.

Suunto’s North American subsidiary has hired David Grayson as national sales manager for the U.S. Grayson was most recently national business manager at PowerBar. Footbalance, the maker of custom-molded insoles, announced that Matt Kaplan was appointed its president and managing director for its North American subsidiary. Kaplan most recently served as vice president and business director for Suunto North America, leading strategic planning and overall operations to drastically grow the sales force and distribution channels to achieve record sales and profits.

Teko Socks has hired Verde PR & Consulting as its agency, effective immediately.

Derek Kent, formerly the US media relations director of Nike, Inc., was appointed executive director, corporate and brand communications for the Canadian Olympic Committee. Kent will report to chief operating and chief marketing officer, Christopher Overholt, effective July 18.

Teva, which is owned by Deckers Outdoor Corp., has hired former Red Bull athlete manager Toshi Corbet as sports marketing manager and Mickel Tingley as new business development manager for action outdoor. The appointments follow Deckers Outdoor’s announcement last month that it is acquiring the surf brand Sanuk in a deal that will give it increased access to action sports channels.

Big 5 Sporting Goods Corporation appointed Boyd O. (“Bud”) Clark senior vice president, buying, effective August 1. Thomas J. Schlauch, who has served in that role for 19 years, has resigned from the position effective August 1.

Hincapie Sportswear (Hincapie), manufacturer and marketer of clothing for cyclists, announced the resignation of long-time marketing director, Steve Baker. Baker is leaving the company in June to pursue new opportunities personally and professionally.

Point6, the manufacturer of merino wool socks, hired Paige Boucher, who will handle the company’s public relations through the newly established PR and marketing firm, Inside Out. Her 23year career includes experience as PR director, marketing director, product development and founding member of Mountain Hardwear.

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LESS IS MORE WITH THE MINIMALISM MOVEMENT SHOWING NO SIGN OF SLOWING DOWN, NEW BRAND OFFERINGS OF MANY SHAPES AND SIZES ARE HITTING THE MARKET FOR SPRING 2012.

By Thomas J. Ryan

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SGB PERFORMANCE l JUNE 13, 2011

Photo courtesy of Mizuno

While all the talk of minimalism still has some worried about the running world’s collective feet, the category is proving to have legs.

With the running consumer’s fascination peaked, the last of the major running brands entered the natural or barefoot category over the last year with big plans in place for Spring 2012. Some early movers are looking to take their minimal offerings to the next level. Among the most-anticipated launches will be New Balance’s first zero-drop shoe and a minimal road running version from Merrell.

A few running brands claim they have long focused on natural running design and have found ways to also provide protection from the elements. While most running vendors quickly warn that zero heel-to-forefoot drop shoes are not for everyone, low-to-the-ground design is working its way into traditional categories such as neutral or stability. These promise svelte as well as supportive and cushiony models to encourage the foot to land on the midfoot - for the natural strike.

“We are definitely seeing a trend toward lightweight, more purposeful design both across our running line as well as in the running footwear category as a whole,” said Tom Carleo, New Balance’s general manager of running/outdoor. “New Balance is taking a long, hard look at everything we add to our shoes and asking “Does that really need to be there, does that add value to the runner’s experience?” I​f it does not we remove it. This is not just happening in our NB Minimus line. In almost all of our shoes we are taking the philosophy of less is more, intelligent and purposeful design.”

But with non-running brands such as Champion, Skechers and Fila joining a host of launches by traditional and newer running brands targeting the category, the months ahead will test whether the apparent high level of demand measures up to an outsized supply.

“The brands that were slow to this have all been playing catch up and the established brands, who have been working on minimalism for a long time, will probably have a little bit of a competitive advantage,” said Patrick O’Malley, SVP of global product at Saucony. “I think the market place is going to be flooded with minimalism shoes - maybe too many. It’s going to come down to the best shoes win.” ​As part of a two-part series on Spring 2012 offerings, the following is a roundup of a several key brands. ​

NEW BALANCE New Balance said the decision to launch its NB Minimus Zero collection followed a throng of consumer calls for a fully neutral platform, minimal shoe after the launch of the first NB Minimus 10 series collection.

“Key to the NB Minimus Zero collection is the use of a new last, the NL-Zero, which mirrors the original NL-1 last used in the initial NB Minimus collection, but eliminates the drop from heel to forefoot (the NB Minimus 10 series features a 4mm drop), positioning the foot in an even more neutral stance, promoting a more natural stride, and encouraging a mid-foot landing,” said Carleo. “The new NL-Zero last also provides increased width in the forefoot that allows the foot to expand laterally on impact.”

Minimal construction reduces weight (each NB Minimus style in men’s size 9.5 weighs less than 7 oz.; women’s size 7 weighs less than 5 oz.) and all of the shoes offer barefoot friendly interiors and no insert to encourage sockless wear.

Another key launch for Spring 2012 is the 890v2 from its NBx performance running line. Built on New Balance’s Natural PL1 last, the collection brings lessons in creating natural footwear with its NB Minimus collection to broader audiences. The shoe features an 8mm drop from heel to forefoot (down from a 12mm drop in the 890). At 9 oz., the 890v2 is about a half-ounce lighter than its predecessor.

“With careful craftsmanship, a few changes to the detailing and grooving were made on the midsole, composed of REVlite foam, to create a more lightweight package, without sacrificing cushioning, stability or durability,” said Carleo.

At the ultra-tech level, the 1080v2 will feature the brands’ new N2 cushioning technology in the heel and forefoot. N2 tech – featuring a TPU material that has been infused with nitrogen that gives the resulting plastic material pliability - allows for less material underfoot, while delivering cushioning comparable to models with a higher midsole heights and heavier weight.

3 1 4 2

New Balance 890v2 Built on New Balance’s Natural PL1, the 890 v2 features an 8mm drop from heel to forefoot (rather than the previous 12mm drop in the 890), putting the foot in a more natural position. With careful craftsmanship, a few changes to the detailing and grooving were made on the midsole, composed of REVlite foam, to create an even more lightweight package, without sacrificing cushioning, stability or durability. MSRP $100 New Balance Minimus Zero Road The New Balance Minimus Zero collection features a new last, the NL-Zero, which mirrors the original NL-1 last used in the initial New Balance Minimus collection, but eliminates the 4mm drop from heel to forefoot.

The new NL-Zero last also provides increased width in the forefoot that allows the foot to expand laterally on impact. MSRP $110

“It’s never been more important to bring technical innovation to our statement (high end) price-point products,” said Carleo. “New Balance believes that the N2 technology is something distinctly different than anything else in the market and we feel it is important to offer game-changing technologies to the consumer.”

BROOKS​ F​ or Spring 2012, Brooks launches include the Adrenaline GTS 12, Ravenna 3, and a super-plush Trance 11. The company hopes to build on the momentum of its new lightweight PureProject collection, which hits retail on October 1, with a host ​of new colors to follow in the Spring.

“The PureProject line has given us the ability to push the envelope with biomechanical innovation,” said Carson Caprara, Brooks’ footwear product line manager. “We will introduce five new technologies that allows the product to deliver more with less, and a more connected running experience, while maintaining our commitment to injury prevention.”

The Ideal Heel, the cornerstone of the technologies, promotes a more aligned footstrike by shifting the point of force application forward 3 cm. The Toe Flex is a groove into the midsole separating the big toe area from the rest of the midsole and outsole, optimizing forefoot flexibility that works naturally with the body. Some reviewers see the most critical innovation in the midsole. BioMogo DNA promises to deliver a completely adaptable cushioning that responds instantaneously to each individual’s cushioning needs.

As part of its PureProject launch, Brooks will be preaching its new product spectrum around two distinct running experiences: 10

SGB PERFORMANCE l JUNE 13, 2011

Brooks PureCadence delivers more support through smart, streamlined features such as a wider Nav Band that is locked into the lateral strike pod. A reinforced heel counter secures the foot and the internal PDRB helps prevent overpronation. Gives runners who need more stability the chance to experience the feel of a natural foot strike with a lightweight, breathable shoe. MSRP $120 Brooks PureConnect Neutral runners who crave less shoe and more freedom will love the maximum breathability of an open mesh upper built on a slim and nimble underfoot. A split toe groove extends through the forefoot allowing the runner to engage the foot and get a greater sense of connection to the ground. A shoe for those who want as little as possible between them ​and the road. MSRP $90

Float and Feel. The Float category showcases Brooks’ core product offering while Feel covers the new PureProject close-tothe-ground collection.

“We found that many runner’s are looking to experience running in new ways,” said Caprara. “Some want to tune into the run and feel the ground. They have a product expectation that delivers that experience. We also found that many runners are in search of a soft, plush, floating experience. They too are in search of product that delivers this ultimate ride. We feel strongly that we now have a product that gives the consumer the choice on how they want to run - Float or Feel.”

MIZUNO Celebrating the 15th anniversary since the launch of its Wave technology, the Wave Rider 15 will debut November 11 in time for the NYC Marathon. Rod Foley, director of marketing, running footwear at Mizuno USA, said the collection will encapsulate the “just as much shoe as you need, and nothing more” ethic that has continually landed the Wave Rider as the first or second moderate neutral shoe in run specialty.

“Mizuno spent the first decade of this century resisting the tendency of making shoes bulkier and cushier,” said Foley. “We believe through restraint and an attitude of ‘just enough’ that we can make shoes that work in harmony with your body and therefore run more naturally. The Wave Rider ​15 manifests this philosophy in a very compelling way.” ​ For the first time, Mizuno is also extending its SmoothRide

Mizuno Wave Rider 15 for neutral runners, will be the first series to feature SmoothRide technology, minimizing the rapid acceleration and deceleration of the foot during transition. Also featuring Mizuno’s Wave plate. MSRP $115 ​ Mizuno Wave Prophecy​ Mizuno’s first running shoe engineered with full-length Infinity Wave technology, the Wave Prophecy also features Dynamotion Fit that delivers comfort with an upper shoe-fit that wraps the foot securely from heel-landing to toe-off. ​MSRP $200

technology on its top-end shoes - Wave Prophecy, Wave Creation and Wave Nirvana - down the ​pyramid to the Wave Rider 15, as well as to the Wave Inspire 8 and the Wave Elixir 7. The technology includes its forefoot flex controllers, which allows the flex of the shoe to better match the flex of the foot, therefore moving more naturally.

“With all the talk in the market around ‘natural running,’ SmoothRide is a concept that people can understand and appreciate when they take a run in our shoes,” said Foley. “When we get the runner comments of ‘When I run in your shoes, I never think about what is on my foot’ or ‘Running in your shoes is like running with nothing on my feet (in a good way),’ they have a lot to do with SmoothRide and how we engineer our shoes.”

Among other models, the Wave Prophecy, which just hit the market to a stellar response, will update for Spring 2012 with a new color. The Wave Creation 13, Mizuno’s fastest growing model over the last two years, gets lighter and fits more glove-like for Spring 2012.

Foley said all the increasing discussion around lightweight/minimalism/natural running plays to Mizuno’s long-term strengths.

“Runners will rely less on overly cushioned, controlling products and look for products to work in harmony with their natural movements,” said Foley. “We believe we have been in that space for a very long time, and will continue to provide products that are not afraid to be just enough.”

NEWTON RUNNING At Newton Running, the big news is the launch of MV2 Speed Racer, its first true lightweight racer.

The MV2 features its patented Action/Reaction Technology but newly developed manufacturing techniques and technology advancements allowed the company to include five actuator lugs (instead of the four-lug design used in all other Newton shoes) and brings the medial and lateral lugs to the outer edges of the shoe, according to Ian Adamson, the brand’s director of research and education. The wider lugs provide more surface area in contact with the ground, and the inclusion of an articulated biomechanical top plate under the actuator lugs allows more natural foot movement.

While proving to be a “true racing flat with exceptional efficiency, longevity, afferent feedback and light weight,” the MV2 Speed Racer is also flexing its muscle as a distance and trail running shoe. Most wear testers who run the ​​technical trails around Boulder are raving about its responsiveness and stability, he noted.

“So far the shoe is holding up for several hundred miles for efficient runners, compared to 25 to 50 miles for most racing flats,” said Adamson. “Our analysis ​shows the shoe has very little loss of cushioning and efficiency after 250 miles for a 170 pound runner on all surfaces. Commensurately, the cushioning and efficiency is far superior to traditional foam shoes of similar weight.”

Newton Running MV2 Speed Racer Pronounced "M V squared," the MV2 Speed Racer is zero-drop shoe featuring race-specific Action-Reaction Technology that protects and cushions the foot while providing superior energy return compared to other race flats with a thin EVA midsole or "barefoot" shoe with no midsole. At 5.8-ounces, the race-specific shoe also features Met-flex enhanced forefoot flexibility, ETC anti-friction and antibacterial sock liner, and a water drainage system. The outsole features a high traction five-lug pattern, and high-density rubber in the heel and toe. MRSP $125

Newton Running Momblk_11 The Momblk_11 is a new colorway for the Men’s Terra Momentus All-Terrain Trainer, which recently won the award for “Most Innovative Product of the Year” from Tri America. The outsole features a protected membrane and more traction, while the upper is made with a protective mesh to keep out debris and webbing to provide more upper stability. This low profile, high-durability shoe allows you to run naturally on the trails. Recommended for all distance and terrain also great for walking & hiking. MSRP $139

Reebok ZigNano Fly 2 offers a low cut profile for added mobility. Synthetic mesh upper for comfort, fit and durability with reflective material for night visibility. Removable PU sockliner. Responsive cushioning accommodates orthotics. Carbon rubber heel strike for durable traction. MSRP $105

Across the board improvements for Newton shoes in 2012 include an advanced lighter weight foam, reduced upper foam package (lighter weight, more breathable), more anatomical upper design and improved main upper mesh.

Adamson said burgeoning minimalist growth validates what Newton has been doing for the past 4 1/2 years, and the brand is seeing a flow back from people attempting to adapt to barefoot/ minimalist footwear.

“Many realize that physiological adaptation of the fine bones of the forefoot to a minimal cushioning on hard surfaces is difficult, prolonged and may even be impossible,” contends Adamson.

“Newton shoes are the only shoes that currently bridge the gap from traditional (big, bulky) running shoes to minimalist shoes.”

REEBOK Reebok will continue to build on the renewed momentum it’s gained in running with its ZigTech and RealFlex series. The men’s side will continue to focus on flexibility and energy with a major launch planned around the Zig Nano, its low profile running offering.

“The upper construction has taken a significant leap forward with more technical meshes for better fit, increased comfort, breathability and lightweight,” said Paul Froio, Reebok’s head of men’s marketing and merchandising. “This model is also offered as a dual density posted option for the runner who needs a more stable option.”

Also in men’s, The RealFlex Transition training model features 53 strategically positioned independent sensors, down from 76 on the RealFlex runner, for increased stability and traction for lateral mobility while maintaining the flexibility and lightweight attributes of the original RealFlex running model.

“It’s molded midsole and upper construction allows for additional lateral support and offers everything that running does with increased versatility,” said Froio. ​In women’s, the RealFlex series will be extended with the YourFlex Run and​the Trainer. Other women’s launches include the ZigNano Fly 2 and the RunTone +, a hybrid toning/running shoe.

Kristen Olson, head of women’s marketing and merchandising, said Reebok’s Our Plus technology, being offered in EasyTone, RunTone and our EasyTone Flip uses Reebok’s 3D Ultralite technology which is 12

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Pearl Izumi Kissaki The Kissaki is minimal by nature and light weight because it has been stripped of all unnecessary parts. It features the newest 1:1 bonded,​seamless upper with interior seam taping and seam-free, breathable upper. The shoe also features a 1:1 energy foam heel crash pad and memory foam collar. MSRP $130.

the same material found in its successful Zig and Flex products. She adds, “By using 3D Ultralite, we are able to reduce the weight of our EasyTone shoe by 24 percent and RunTone by 9 percent. In addition to being lightweight, 3D Ultralite increases softness.”

PEARL IZUMI At Pearl Izumi, the big story is the launch of the Kissaki, a new minimal shoe that marks a continuation of its Pure performance mentality and approach to shoe design.

“It is minimal by nature and it’s lighter weight, because we have stripped away ​unnecessary parts,” said Scott Tucker, director of run.

The Kissaki takes the same approach as the Streak II, its race shoe that has enjoyed strong success. The Kissaki is a more versatile, durable, and protective product while remaining light enough for most people’s race-day needs.

The shoe’s seamless upper technology also offers a new level of breathability and stitch-free comfort while providing a neutralcushioned ride.

“The Kissaki is an execution of how we have worked-in our apparel welding techniques to the inside of the shoe for a smooth transition between very breathable mesh in the forefoot to more abrasion resistant fabric in the midfoot and heel,” said Tucker.

Tucker said Pearl Izumi’s neutral-to-mild stability categories are also seeing strong demand for 2011 and 2012. Said Tucker, “The Fuel II and the Float IV are complimenting our newer neutral offerings and the upper updates for 2012 are receiving rave reviews.

Comfort, style, and color; bold and beautiful.”

But Pearl Izumi believes minimalism in road running shoes can only go so far.

“Barefoot can feel natural on grass and sand, but unnatural on pavement,” said Tucker. “With the cushioning and protection requirement, our goal is to deliver a natural platform with the least amount of material underfoot that could impose unnatural sensations, posture, and mechanics.”

Note: Part two of the series on Spring 2012 “Less Is More” minimalism movement will feature Adidas, Saucony, Asics, Puma, Karhu, among others.

Where Strategic Decisions Begin SportScanInfo.com A Service of The SportsOneSource Group WEEK 1124 SGBweekly.com

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A

THE CHANGING BUSINESS OF THE SPORTS BRA INDUSTRY WITH BETTER DESIGN AND SELLING TECHNIQUES, THE SPORTS BRA BUSINESS WENT FROM AN AFTER-THOUGHT TO A BOOMING BUSINESS. Note: This is part two of a two-part series

By Mackenzie Lobby

Photo courtesy of Kalyx

s the functionality of sports bras have improved since the first JogBra was created in 1977, fashion has followed. The approaches used by manufacturers and retailers to sell these garments have, in turn, also evolved. Today’s sports bra industry is a whole different ball game than it was in the beginning.

“I think women are getting smarter and are demanding that we come up with something that’s really going to work for them as individuals,” says Renelle Braaten, Founder and President of ENELL. In addition to better bra stylings, retailers are becoming savvier in their selling tactics, offering consumer education and individual fitting assistance. No longer are women expected to choose a bra off a rack at random; now they enter specialty stores expecting advice and measurements to insure they leave with the right bra.

A renewed vigor in the designing and marketing of sports bras has been spurred as a result of this shift. In addition to highlighting the fashionable elements of bras, manufacturers and retailers are bringing attention to the entire fitting experience. “It’s just like finding your favorite running shoe,” says Julie Baxter, Vice President of Moving Comfort. “Once you find your favorite sports bra, you’ll be completely loyal to it.”

FASHION FORWARD In the world of sports bras, aesthetics is becoming an increasingly important selling point. Kalyx, a relatively new player in the industry, has largely relied on good style and quality to get them through some of the most challenging economic times. “What I feel we do best is to marry fitness with fashion,” says Kimberly Cayce, CEO of Kalyx. “Our sports bras are designed for the modern woman.”

Among the hottest trends are contouring and shaping qualities that make women both look and feel better during activity.

Baxter says they have seen a big demand for designs that provide a more flattering shape. “Women want to look good in their workout clothes, but also want to be modest,” she says. Part of this trend has been driven by the latest in construction methods. Today there exists gluing and bonding techniques that create strong seals without sewing, giving a sleeker overall finish.”

“Companies have begun to recognize that women prefer not to have seams across the breast,” says Bonnie Dau, Co-Owner of Revel Sports in Schofield, Wisconsin. “They want a bra that performs great, but also one that looks just as great.”

Bolder colors and patterns characterize the new era of sports bras.

“Originally there were black, white, and maybe nude sports bras and now there are far more choices for colors and prints than ever before,” says Sarah Clark, Product Line Coordinator for Patagonia.

“We have especially seen a lot of younger girls in cross country and track who want something that’s going to be cute and fun,” notes Jillian Wieder, Brand Manager for Fleet Feet Inc. Sports bras have gone from being purely a piece of equipment, to a being an actual fashion item. “Women like to coordinate the bra with the entire outfit because you sometimes take your top off when you’re working out,” says Baxter. “There is a very big fashion element to the business now and that is a huge change.”

Clark mentions that Patagonia has also gotten many requests from retailers for colors and prints. “Retailers want that full story because it creates a better presentation at retail.” As a result, they work to match specific sports bras with certain sport apparel collections. This makes for a more appealing look on the sales floor, as well as a more stylish line of products for the consumer.

Wieder echoes this point, saying, “for merchandising purposes, the stores want something that looks good on the hanger, and with bras, that’s not always easy.” As a result they try to put certain bras on bust forms rather than hangers in order to highlight the style of the bra. This makes for a better presentation and a more appealing product to the consumer.

ON RETAIL FLOOR With the advent of better design, technology, and higher style, the buying and selling of sports bras has become increasingly complicated. Most agree that specialty stores have an advantage in this business. “While big box stores are big and may offer some variety, generally speaking they do now always provide the best technology,” says Dau. “To find the best that is available, women will have more success shopping at a specialty store.”

Along with better quality, women are looking for a better shopping experience. They want individual advice and assistance

Photo courtesy of Moving Comfort

to insure they walk out of the store with the best bra for the job.

This also translates into a need for a greater variety of options at retail locations big and small.

“It used to be one little rack in the back of the store with a small number of choices,” says Clark. “Now you walk into a store and there are whole walls of bras and body forms with every size and color. It is definitely now a serious business and stores are merchandising as such.”

“As more women have gotten into sports and demanded better products, it has forced all of us to do a better job and really understand what women need,” adds Wilson.

Baxter agrees. “From a brand perspective, there is a lot more competition out there and I think that makes us all do our jobs better,” she says. “When you know there are people out there watching you and trying to build the next best sports bra, it keeps you on your toes and moving forward all the time.”

In the end, the consumer is the big winner. As competition has become more heated among manufacturers, retailers are also looking for ways to appeal to consumers. This has made for better-informed staff who are familiar with the various brands and how to fit them.

CONSUMER EDUCATION Bra fitting advise has become expected among many women who set foot in any sporting goods stores, especially the running specialty channels. Despite all the late and great options, many women still WEEK 1124 SGBweekly.com

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CW-X VersatX Support Bra This bra balances comfort and support with adjustability and a flattering silhouette. Featuring a seamless front panel with a 5-point CW-X Targeted Support Web in each cup, it is reinforced with an extra internal web layer. A LiteStretch mesh back, mesh under-cup channels, and Coolmax/Lycra tricot construction for ultra-quick wicking. MSRP $65

FLEET FEET’S DIVA NIGHTS Fleet Feet has found great success in designating special ladies shopping nights, dubbed “Diva Nights,” to assist women with sports bra fittings. “We train people to run everything from the 5k to the marathon,” says Jillian Wieder, Brand Manager for Fleet Feet Inc. “At bra fit nights women can learn about the differences in sports bras and how they should fit.”

Following the Moving Comfort fitting process, Fleet Feet staff assists in measuring women for bras and selecting appropriate sizes and styles. Once a woman gets the bra on, they are there to help with adjustments to make sure it fits appropriately. “A lot of it is simply about education,” explains Wieder.

While the Diva Night began as simple bra fitting clinics, it has become a full-fledged Ladies Night Out. By bringing in local vendors to do everything from neck massages to manicures, the stores have created a fun and relaxed atmosphere for women to feel comfortable.

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SGB PERFORMANCE l JUNE 13, 2011

Patagonia Switchback Bra New for 2011, the Switchback bra adjusts for a perfect fit. The quick-wicking recycled poly/nylon/ spandex blend material and super soft construction make this bra perfect for a C/D cup.

MSRP $59

don’t know exactly how a sports bra should fit. This is where education becomes important, especially at the retail level. “A lot of women don’t know their regular bra size and have never been fitted correctly for a regular bra, let alone a sports bra,” says CW-X COO, John Wilson.

“There is a lot of education that goes along with the process.”

Fleet Feet stores encounter hoards of new runners every year and are charged with assisting them with everything from shoes to sports bras. “We train the staff on how to take the two measurements [ribcage and bust] and how to make the customer comfortable during the process.” Taking things one step further, Fleet Feet also has webinars and online training tools for their employees to access if they are in need of tips on how to fit customers.

Moving Comfort is creating tools that even the big box stores can use. Bra brochures in dressing rooms allow women to oftentimes answer their own questions. Cayce says that Kalyx has learned the importance of educating everyone involved, saying, “To both design and merchandise a sports bra successfully, you really have to understand what your customer wants and needs; support and style are equally influential over purchasing decisions.”

Similar to Moving Comfort, ENELL provides retailers with tools to assist in fitting women of every age, activity, and body shape. “All of our retailers go through a ‘boob camp’ program,” explains Braaten. “We send them a CD and then go over it with them to train them on how to ask the right questions, use our size chart, and properly fit every woman.”

While many women are drawn to the aesthetic qualities of a bra, most retailers say that once they find something that is comfortable, style becomes less important. “A lot of women just don’t realize how a sports bra is supposed to fit,” explains Wieder. She says she is constantly amazed at the sense of joy and relief displayed by women who are finally directed to a properly fitting sports bra. “When I go to some of these expos, women are jumping for joy because they have finally found something that fits. I think it’s just one of those things women don’t realize they can be comfortable during activity when they have a good bra.” ■

I AM... SGB PERFORMANCE

RICK WILHELM

Brooks Sports, VP Sales, Specialty Retail Accounts

WHAT DID YOU WANT TO BE WHEN YOU GREW UP? My dad was always an

L.A. sports fan. I grew up thinking about playing or managing for the L.A. Lakers.

FAVORITE SPORTS GROWING UP? Growing up in Alaska my favorite

sports were cross country and track. I tried Nordic skiing but was not thrilled with training in -30°F. When I finished last in a race, I decided that running might be more my thing.

WHEN DID YOU GET THE RUNNING BUG? Entering high school I had some

height challenges being 4’10” and 90 lbs and lost interest in playing basketball and volleyball. My dad suggested I go out for the Harrier team. To be honest, I didn’t know what a “Harrier” was but after some initial success in early season cross country races, I became a lifetime runner and eventually grew a foot taller.

HOW DID YOU WIND UP AT BROOKS? After 6+ years at Super Jock n Jill, I

wanted to try something new and without even thinking it was time to leave, Brooks called asking if I knew of anyone that could be a tech rep. After several interviews, I became that new Brooks’ tech rep. ​ OES YOUR CAREER HAVE A TURNING POINT? When Brooks decided to D focus on the specialty run channel in 2001 it allowed me to focus on a retail channel that I knew well and to work with buyers and owners that I had​ known for years.

WHAT’S GREAT ABOUT WORKING FOR BROOKS? You get to be yourself. We all have mutual respect for one another and love to celebrate the wins as a team but nothing is out of bounds.

YOUR ADVICE TO SOMEONE LOOKING TO WORK IN THE RUNNING INDUSTRY?

PROUDEST ATHLETIC MOMENT? When I realized I could compete at a Division

Go work at a great specialty run store. The knowledge you can gain from working at retail about customer service is invaluable.

HOW DID YOU GET STARTED IN THE INDUSTRY? After graduating from UC

NAME SOMETHING THE INDUSTRY MIGHT BE SURPRISED TO KNOW ABOUT YOU? I wish I were a cyclist and not a runner. I found cycling late but I have

I collegiate level in California regardless of my limited exposure in Alaska.

Irvine, I moved to Seattle and needed a job. Still wanting to run and train for the Olympic Marathon Trials, I went looking for work at a running store.

Luckily, I gave a decent sales presentation when interviewing with Chet James at Super Jock n Jill and he hired me in 1990.

WHO STANDS OUT AS YOUR MENTOR? Chet James. He never limited my

growth or capabilities. While I was hired to work the retail floor, I was also able to assist him with buying footwear and apparel. He also taught me to never allow a job title to get in the way of taking care of the customer.

Fortunately, I work in this same type of environment at Brooks.

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a blast going up mountain roads on a road bike.

DREAM VACATION? Ride the Tour de France FAVORITE MOVIE? Prefontaine. I had a great summer being an extra and appear in the movie about 10 times.

WHO WOULD PLAY YOU IN THE MOVIE OF YOUR LIFE AND WHY? Jack Nicholson. He appears to really enjoy life and I hope he would let me sit courtside next to him at all home LA Lakers’ ​games.

EVERY JOURNEY BEGINS WITH A GREAT JOB.

HAVE YOU LANDED YOURS?

CONTACT MATT MCCREARY 704.987.3450 ext 108 SPORTSJOBS@SPORTSONESOURCE.COM

JOB

.COM