AUGUST 22, 2011
NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET
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ISSUE 1134 AUGUST 22, 2011
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NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET
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Page16 NEWS
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ASICS Anti-Min Minimal Approach FOOT LOCKER, INC. Beats Fiscal Q2 Street Estimates CANADIAN TIRE Names New Forzani Management Team SPORTS AUTHORITY Snags Mile-High Naming Rights DICK’S SPORTING GOODS Sees Fiscal Q2 Profits Beat Estimates But Comps Fall Short MOVERS & SHAKERS HIBBETT SPORTS Q2 Earnings Jump 48 Percent, Upbeat on Back-to-School
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MINIMALISM DRAWS A CROWD Is a shakeout nearing for minimalist running footwear? CHARGE OF THE LIGHT BRIGADE! Spring 2012 will herald a wide range of new brand offerings in the minimalist category
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Cover photo courtesy of Kigo Shown is the Kigo Drive shoe Copyright 2011 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers & contributors to SGB WEEKLY are not necessarily those of the editors or publishers. SGB WEEKLY is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher. SGB WEEKLY is published weekly 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 1134 | SGBweekly.com
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NEWS
ASICS ANTI-MIN MINIMAL APPROACH The 33 by Asics collection represents Asics' approach to the minimal movement but just don’t call it minimal. By Thomas J. Ryan
In showcasing an expansion of the collection planned for Spring 2012, Asics brought international research consultant Simon Barthold to their New York City showroom last week to counter any confusion created by the minimalist movement and to debunk some of the theories being proclaimed by competitors. Brice Newton, Asics' running footwear manager, said that if a runner was looking for a true minimal product, the company would lead them to its racing shoes such as the Piranha and Hyper Speed. The 33 collection addresses those looking for a lighter weight shoe that encourages a natural stride but lends itself to an easy adjustment for the runner. "The Asics customer expects to take our product out of the box, run their 3, 4, 5, 6, 10 miles, and not have any issues," said Newton. "That's what we’re known for and we don't want to get away from that. We don’t want to put a disclaimer on the box that says, 'Be very careful in transitioning into this product.'" While lighter, the 33 collection still maintains 10 millimeter heel-to-toe drop ratio also featured in its traditional models such as the Kayano. Said Newton, "A lot of our competition is saying going to a lower-drop reduces injuries and it might work for some but it's not going to work for all." The 33 collection provides more options for the consumer's "bag of running shoes." While Asics has long encouraged runners to alternate shoes to avoid overuse injury, it felt consumers found the traditional models too similar to switch them up. Said Newton, "Now 4
SGB PERFORMANCE l AUGUST 22, 2011
the traditional Kayano user can get something lighter weight, more aggressive, with more fun colors... it just creates a nice package of alternating shoes for this consumer." The 33 collection enables Asics to be more creative in their designs to attract a younger consumer. "With the Kayano, we're on our 18th version. There's something that the consumer expects and we have to measure up to that expectation. With the 33 collection we can bring different designs and colors to attract the younger demographic." Newton said Asics may come out with a lower-heel drop product but mainly to help runners run faster. Said Newton, "It isn't about injuries at all. If you want to run faster, you want to be up on your toes. We agree with some of the stuff [around the
Asics Court Dress from their first tennis-specific apparel collection
Asics GEL-Neo33 MSRP $120
minimalist movement] but other stuff we don’t agree with. That's the great debate at the moment." GEL-Cirrus33 debuts as the flagship model of the 33 collection. At 11.9 oz (size 9), a two-layer midsole construction features a plush SpeEVA 48 upper above a denser Solyte 53 base to maintain a comfortable, stable ride. Said Newton, "It's a great combination and sticks with the theme of natural footwear. It's the most GEL we’ve ever put in a running shoe." GEL-Excel33 features the same two-layer construction with less cushioning to reach a weight of 9.9 oz. It stands out for its Propulsion Trusstic underneath for improved efficiency and go-fast feel appropriate for underpronators and mild overpronators. GEL-Neo33 for runners demanding mild stability weighs in at 10.2 oz. The midsole bottom features a bottom layer of supportive DuoMax Support System, positive medial flex grooves, and full ground contact to deliver versatile dynamic support. GEL-Blur33 at 9.88 oz, received a strong reception at mall specialty and sporting goods stores with its June introduction and will receive new color ways. A 33 trainer is also being introduced. Many of the traditional models are being updated with an overall focus on lightweight. Outside running, Asics showcased a much bigger tennis push, including its first tennis-specific apparel collection that follows expansion on the shoe side. The new ARD bra collection features fully-molded cups with convertible and adjustable straps for maximum support and comfort and is even stylish enough to be worn on its own. Asics overall collection features a much greater emphasis on color as well as mesh and piping details. Its graphic Ts and low-cut shorts in colorful prints are standouts. In golf, the lighter Match Play 33 embracing 33 technologies brings a more casual approach to the links. In track & field, the Japan Lite-ning 4 and Japan Thunder 4 join an overall apparel collection around the London Olympic games. Asics also unveiled its first watch line to be launched in the U.S. through a licensing agreement with Seiko.
Asics unveils their first watch line launched in the U.S. liscensed through Seiko
WEEK 1134 | SGBweekly.com
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NEWS
FOOT LOCKER, INC. BEATS FISCAL Q2 STREET ESTIMATES Foot Locker, Inc.'s fiscal second quarter profits vaulted six-fold as comps grew in the doubledigits for the second-straight period and gross margins expanded 260 basis points for the period ended July 30. On a conference call with analysts, company Chairman, President and CEO Ken Hicks noted that the results marked six consecutive quarters of sales and profit increases. While results were bolstered by robust footwear demand, particularly for running footwear styles, he believed efforts to differentiate banners, broaden assortments and turnaround apparel were working. "We continue to have broad-based success along a wide range of the athletic footwear and apparel marketplace, and we are showing that we can sustain our performance over time," said Hicks. Net income reached $37 million, or 24 cents a share, in the fiscal second quarter, up from $6 million, or 4 cents a share, in fiscal Q2 last year, and far above Wall Street's consensus estimate of 11 cents a share. Sales increased 16.3 percent to $1.28 billion and increased 11.7 percent on a constantcurrency basis. Comps jumped 11.8 percent. Low-double-digit gains were seen in both May and June, while July came in the high-single digits as a couple of promotional events were not anniversaried in the last month. All divisions posted a comp gain in July and so far in August comps are running up mid-single-digits, in line with expectations given strong yearago comps. Gross margins were significantly better throughout the quarter. Foot Locker’s international divisions delivered a mid-single-digit comp increase in the quarter, in line with expectations. Foot Locker Europe, its largest international division, was the strongest performer followed by Canada. The driver was again the U.S., with store comps increasing in the low-teens while its Direct-to-Consumer (DTC) segment, which also includes Eastbay, posted in excess of 20 percent comps for the second consecutive quarter. Within its DTC segment, store banner dot-com sites continue to deliver the strongest comparisons. Among store divisions, Champs saw the strongest gains with the help of a new campaign 6
SGB PERFORMANCE l AUGUST 22, 2011
calling the chain as the place to go for "Those Who Know Game." All divisions posted a comp gain in the quarter with the exception of Lady Foot Locker, which early in the quarter was up against significant toning footwear business from a year ago. Footwear, apparel and accessory comps were all up double-digits. Unit sales and average selling prices were both up again in the quarter. Within overall footwear, men's and kid's posted double-digits comps. Overall women's comps were up midsingle-digits with certain categories of women's footwear, especially technical and lightweight running, continuing to more than offset the impact of toning liquidations. Apparel, continues to accelerate from the first quarter, saw comps rise in the teens, and in the high-teens in the U.S. Looking ahead, Foot Locker is still planning mid-single-digits comp gains in the back half of the year, particularly given the challenging year-ago comparisons and in light of the uncertain economy. For the year, Foot Locker now expects highsingle-digit gains after the better-thanexpected first half.
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NEWS
CANADIAN TIRE NAMES NEW FORZANI MANAGEMENT TEAM Michael Medline, President Forzani
Robert Sartor formally stepped down as CEO of the Forzani Group, Ltd. Canadian Tire Corp. last week completed its $771 million takeover of the Calgarybased sporting-goods retailer and installed a new management team. Michael Medline, who led the Canadian Tire acquisition team and formerly served as president of Canadian Tire Automotive and Dealer Relations, was appointed president of Forzani. "Michael Medline is a natural choice as our lead executive to drive growth at FGL," said Stephen Wetmore, president and CEO of Canadian Tire. "We are combining Michael's passion for sports and experience in leading large organizations with a highly-talented executive team that brings the best of our organizations together." Former FGL President and Chief Operating Officer, Thomas Quinn, will continue to provide strategic counsel to the new FGL executive team in a consulting capacity. Sartor had been Forzani's CEO since 2003. Prior to that he had been the company's president of business support and chief financial officer for six years. During his time in those senior roles, Forzani evolved into Canada's largest independent retailer of sporting goods through a combination of acquisitions and internal growth. Among other appointments, Gregory Craig, Canadian Tire's vice-president of financial planning and analysis, has been appointed Forzani's chief financial officer, replacing Michael Lambert. Richard White becomes SVP and chief merchandising officer, adding responsibility for FGL's wholesale and private label divisions to his previous role with Forzani. Duncan Fulton, SVP of communications and corporate affairs with Canadian Tire, will take over responsibilities for marketing, advertising, e-commerce and communications at Forzani. Similarly, Kristine Freudenthaler, Canadian Tire's chief information officer; Doug Nathanson, its legal counsel; and Trent Holfeld, its VP of real estate, will extend their roles to Forzani. Former Forzani employees continuing in the same roles include Chad McKinnon, SVP, corporate operations; Jean-Stephane Tremblay, EVP, franchise; Keith Lambert, SVP, supply chain and merchandise management; and Matthew Handford, SVP, human resources. "We have appointed a great mix of skills and experience, coupled with previous executives from Forzani and new executives from Canadian Tire," said Wetmore. "I am confident that this is the team to lead Forzani on a path of strong growth." Canadian Tire earlier in August received Competition Bureau clearance for its takeover. It said last week that that 97 percent of Forzani's shares had been tendered to its offer of $26.50 cash per class A share by the Aug. 18 deadline. 8
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SPORTS AUTHORITY SNAGS MILE-HIGH NAMING RIGHTS Sports Authority has reached a tentative deal with the Denver Broncos and the Metropolitan Football Stadium District respective to the naming rights of Invesco Field at Mile High Stadium. "Sports Authority Field at Mile High," the official name of the iconic stadium, is expected to take effect in time for the Denver Bronco season opener on September 12, 2011. "A hometown team should have a hometown sponsor," is how Sports Authority's Chief Marketing Officer, Jeff Schumacher characterized the partnership. "With the Denver Broncos and the Stadium District we will work to preserve the traditions of Mile High while elevating the stadium and fan experience to new heights." "The Broncos are thrilled to have Sports Authority on the team. We have a longstanding and successful relationship with Sports Authority and look forward to working together to enrich the experience for our loyal Broncos fans," said Denver Broncos SVP Business Development Mac Freeman. Invesco, Ltd. has owned the naming rights to Mile High since 2001 with a contract set to expire in 2036. Under the Invesco contract the naming rights would last 25 years. Invesco entered into talks with Sports Authority earlier this year to explore a possible new deal to place in review with the Broncos and the Metropolitan Stadium District. Matt Sugar, Stadium District spokesperson said, "The stadium district has benefited from the Invesco relationship and looks forward to the same commitment Sports Authority has made to Denver and Colorado over the years.
DICK’S SPORTING GOODS SEES FISCAL Q2 PROFITS BEAT ESTIMATES BUT COMPS FALL SHORT Dick's Sporting Goods reported a higher-than-expected fiscal second quarter profit and raised its earnings forecast for the year but comps came in slightly lower than expected due to weakness in outdoor categories and an overall conservative outlook for the remainder of the year leading to a minor selloff of Dick's shares last week. "As we look at the balance of the year we're taking a cautious approach," said Chairman and CEO Ed Stack on a conference call with analysts. "The uncertain economic environment that has been exacerbated by the political gamesmanship in Washington makes it difficult to predict the future of consumer spending. Understanding and recognizing these challenges, we will concentrate on those elements of our business that we have demonstrated we can control to deliver steady earnings growth for the third and fourth quarters of 2011." In the second quarter, consolidated non-GAAP EPS grew 21 percent to 52 cents a share, exceeding the company’s original estimates of 47 to 49 cents a share. Second quarter sales increased 6.6 percent to $1.31 billion. Consolidated comps increased 2.5 percent, missing the 3 percent gain forecast at the time first quarter results were announced. Dick’s Sporting Goods chain's same-store sales increased 1.7 percent in the period; Golf Galaxy climbed 4.0 percent; and the e-commerce business jumped 31.9 percent. The increase at the Dick's chain was driven in part by a 2.5 percent increase in sales per transaction, partly offset by a 0.8 percent decline in traffic. Athletic apparel, footwear and golf drove the gains while outdoor declined year-over-year. Gross margins improved 130 basis points to 30.7 percent of sales, reflecting less clearance activity versus last year and a change in product mix with relative increases in athletic apparel, footwear and accessories and a decrease in
the outdoor categories which also includes the hunt & fish “lodge” business. SG&A expenses were reduced to 21.9 percent of sales from 22.1 percent a year ago, primarily due to a decline in store payroll and advertising. The quarter also recognized a $13.9 million gain when the company's shares in GSI Commerce were liquidated in connection with eBay's acquisition of Dick's e-commerce partner. On the call, Stack said the "strong results" came despite some challenges, including a shorter sports season in the Northeast, Midwest and Mid-Atlantic regions. Those regions "were blanketed by extreme cold and wet weather this spring," contributing to weakerthan-expected sales during May. In June and July, however, sales rebounded with both months comping above 3 percent. Stack noted that the Dick's chain also tested reallocating a portion of its marketing dollars from the outdoor area to footwear and apparel. Said Stack, "This definitely improved the footwear and apparel business which helped our overall margin mix; however, it had a bigger than anticipated effect on the outdoor business." For the second half, Dick's plans to renew its emphasis on outdoor category marketing and expects to regain any lost market share in the category. WEEK 1134 | SGBweekly.com 9
NEWS
MOVERS & SHAKERS OrthoLite has appointed Heather Row to chief financial officer. The company has also hired Caitlin Infantino as account executive. David Pfeiffer, who served as chairman of the board of directors of the National Sporting Goods Association (NSGA) from 1985-86, passed away on Tuesday, August 16, 2011. He was 81 years old. Holden appointed Ben Pruess as the company's first CEO. Most recently he was global VP of Adidas. K2 Skis appointed Kevin Lewis as its new U.S. sales manager. Jim Gabel has been appointed to the position of Adidas Group president, Canada. Gabel had previously served as president of Reebok North America. Oboz Footwear hired Sharon Gauding, effective immediately, to the newly created role of vice president of sales and marketing. Deckers Outdoor Corp. appointed Jake Brandman as the Sanuk brand president, effective September 1. Brandman joins the Sanuk team after serving as the VP of North American sales for Teva. Nautilus, Inc. promoted William B. McMahon to chief operating officer. McMahon has been a senior vice president at Nautilus since November 2009. Established Brands, the official outdoor gear and footwear licensee for Wenger, hired outdoor industry veteran Kenny Ballard as the new general manager of the company's outdoor gear business. Bob Krieger has been hired as chief financial officer Bearpaw Footwear. Zumiez reported Marc Stolzman has become its new chief financial officer and corporate secretary. 10 SGB PERFORMANCE l AUGUST 22, 2011
HIBBETT SPORTS Q2 EARNINGS JUMP 48 PERCENT, UPBEAT ON BACK-TO-SCHOOL Hibbett Sports, Inc.'s fiscal second quarter earnings jumped 48 percent as better-thanexpected sales growth delivered the retailer’s seventh straight quarter of improved same-store sales. The company also lifted its full-year outlook, calling for earnings of $1.90 to $2.00 a share and a same-store sales increase in the mid-single-digit range. Hibbett in May raised its full-year earnings estimate to $1.80 to $1.95 a share while forecasting a comp store sales increase in the low- to mid -single-digit range. Earnings reached 21 cents a share in the quarter beating Wall Street's consensus estimate of 19 cents. Sales improved 9.5 percent to $153.1 million for the period. Comparable store sales were up 5.9 percent on top of an 11.9 percent gain last year. Comps grew 6.6 percent in May, 7.1 percent in June, and 3.6 percent in July with the back-toschool sales shift from July to August. In the first 19 days of the current quarter, comps were up 7 percent versus double-digit comps last year. "Our store operations team continues to give great customer service with the number of items per transaction up 1.96 percent," said company President and CEO Jeff Rosenthal on a conference call with analysts. "The average selling price per item is up 3.5 percent, and we are getting more traffic per door. Our merchants continue to improve our assortments by door and improve the age of inventory to the best it's ever been." He also noted that the company is still getting "significant sales lifts" from its new replenishment systems that are keeping stores in stock. Becky Jones, SVP of merchandising, said Hibbett's footwear, apparel and accessories drove the sales gains in the quarter. Footwear saw across-the-board gains but was led by the kids business. All genders capitalized on the lightweight running category. Said Jones, "Premier running is driving sales and we had a good sandal season. Reebok, Nike and Adidas had strong results." Active apparel delivered a "terrific double-digit quarter" in both men's and women's. Tees and shorts drove results with strong presence from both Nike and Under Armour. She said they were pleased with the sell-through of Under Armour legend tees, tech tees and Charged Cotton products. Licensed apparel grew in the high-teens, led by pro products. Said Jones, "NBA had a nice performance due to the headwear trend and the Maverick championship." College license sales were "good across all categories" due to strength in tees. Top supplier performances came from Mitchell & Ness and New Era. Equipment was flat overall. Baseball season wound down in the quarter with moderate growth over last year. Bags and helmets were particularly good. In the off-season, basketball performed well and soccer was down overall due to the anniversary of the upswing from the World Cup last year. Adidas was a standout in soccer equipment. Football was off low-single-digits for the quarter. The Accessory area posted another strong sales quarter with particular strength in socks, backpacks and sunglasses.
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SGB PERFORMANCE WEEKLY AUGUSTl AUGUST 8, 2011 22, 2011
Photo courtesy of Zoot
MINIMALISM DRAWS A CROWD Is a shakeout nearing for minimalist running footwear? By Thomas J. Ryan
The controversial trend toward minimal shoes has sent the running industry into another growth gear and opened up opportunities for older and newer players. Industry participants agree that it also continues to cast confusion in the marketplace and has led to a glut of brands attacking the opportunity. Sooner or later, they see an eventual shakeout in the industry. The wave of minimal and lightweight options were on full display at the recent Outdoor Retailer Show in Salt Lake City, UT. Along with a few traditional brands such as Brooks, New Balance and Saucony, trail running brands like Salomon, GoLite and Vasque, and lifestyle brands K-Swiss and Skechers, were all touting solutions to the less-is-more craze. Zoot, marking its first OR appearance since 2008, previewed its fast-looking Ultra TT 5.0 while Avia showcased its 7.4 oz Avi-Bolt III. Ecco launched its first BIOM trail shoe and a new BIOM Lite trainer that encourages foot and lower leg strengthening. Oversized approaches to the natural running movement came from Hoka One One and Tecnica. Newer brands addressing the minimal opportunity exhibiting at the show included Terra Plana, Inov-8 and Altra Zero Drop Footwear, which was recently acquired by fitness equipment giant Icon Health & Fitness. Merrell again saw a busy booth as it widely expanded its barefoot collection to cover road running, transitional shoes, water shoes, training and a Barefoot Life collection encompassing a slip-on moc, ballet slipper, Mary Jane and flip flop. New Balance introduced the first zero-drop version of the NB Minimus collection. Vibram, which partnered with both brands on their minimal approaches, also introduced new running and casual styles on its own. With steady growth in running participation, robust running footwear sales figures across channels and the minimalism chatter creating buzz, the running footwear industry by all accounts remains very healthy. "It’s a great category to be in," said Dave Jewell, footwear category manager at Zoot Sports. The explosive growth around minimalism footwear and the stream from entrants moving into the category had a few wondering whether the market is already too saturated to support the end demand for minimalist shoes. The industry recently learned how quickly trends can change given toning's quick rise and fall. "I think there is the concern in the industry," said Scott Briggs, president of GoLite Footwear. "Just like the whole wellness category that spiked so quickly and then imploded, I think people are looking over their shoulders and saying, 'Is this growing too fast?' 'Are too many people coming in here?' " Briggs believes the minimal trend has more reach than toning because it's backed by scientific studies and testimonials from elite athletes. "The health benefits are real on this," said Briggs. "A lot of companies on the toning side were making commitments that made people question whether a shoe can really do all that. There's a lot of proven testing around barefoot, barefoot running, neutral lasts, etc." And while GoLite Footwear has concerns over how minimal shoes will be able to handle rocks on the trail, Briggs believes the overall footwear industry has been enlivened by the natural running movement. WEEK 1134 | SGBweekly.com
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"It's woken up the industry to the benefits of what we’re really doing and providing," said Briggs. "I also think it’s been great for the consumer. It's making them challenge everything they’re doing and buying and it’s given a boost to the category. It's one of the reasons it's so healthy." Fran Allen, VP of global sales at Saucony, also does not see a "boom and bust" cycle with minimal akin to toning. "First, the growth has been more gradual," said Allen. "Secondly, this was a grassroots movement, created and fueled by consumers, in stark contrast to the heavily-promoted, overly-hyped toning category created by marketers. Most importantly, remember that this consumer movement demanding less shoe and desiring a more natural running gait has given the industry a wake-up call. We are now looking at different ways to construct running shoes, building a more neutral/natural foot position that requires less correction, less control, and providing consumers with shoes that will actually strengthen their feet, lower legs and reduce stress, pounding on the hip, knee and ankle joints. We don't see this as a fad." Overall, Allen, citing point-of-sale data he has seen and believes that the market for more extreme minimal shoes – the zero-drop, very-thin midsole like Vibram and Saucony's Hattori – is only as low as 2 percent at some run specialty stores to as high as 5 percent at others. Overall, that figure could climb to close to 10 percent but could also be smaller. On the other hand, he believes the market for the next level of minimalist offerings – including 4 mm drop shoes like Saucony's Kinvara Peregrine Trail shoes, and the Nike Free – could become bigger than the zero-drop, very minimal shoes because it more easily reaches a wider group of runners. "Our Kinvara could end up being our number one shoe in the near future," stated Allen. "Why? Because it is not as radical a departure from "traditional" running shoes, it doesn't require a slow build up in how much you can use it. Many runners can make the transition from a 12 mm drop shoe to a 4 mm drop without calf tightness and soreness from overuse, but going from 12 mm to zero drop requires a very slow build up in use." Moreover, he believes the influence that barefoot running and natural running has had and will have on running shoe design is significant and creating opportunities for traditional styles. Learning from its lessons making minimalist shoes, Saucony and New Balance lowered the heel-to-toe drop ratio on some of its traditional running shoes from about 12 to 8 for Spring 2012. Bryan Gothie, senior product manager for New Balance Outdoor, agreed that the lightweight and minimal trend does continue to strengthen and evolve a little differently for brands. "In addition to concepts that push the envelope such as our new NB Minimus Zero collection, which launches for spring 2012, we are looking more closely at our products across all categories to identify methods to reduce weight or create a more minimal experience. We are lowering the heel-to-toe drop in some of our performance 14
SGB PERFORMANCE l AUGUST 22, 2011
Alta Zero Drop Instinct
Zoot Ultra TT 5.0
GoLite Tara Lite
Nike Free Run+ 2
running shoes, including the 890v2 featuring REVlite and the 1080v2 to 8mm to encourage a more natural running motion. Motion control shoes that have traditionally been a bigger, beefier shoe, can still be improved with new materials and constructions that create a more lightweight experience without sacrificing performance - not necessarily lightweight, but lighter." New Balance is bringing this mindset to more areas, including apparel, where the brand will launch its NBx Minimus collection for spring 2012 with lightweight fabrics and trims, seamless construction and sleek, modern designs. Zoot's Jewell believes the evolution of the minimalist trend will continue to be positive for running. He pointed to a New York Times' article from July quoting SportScanInfo point-of-sales figures indicating that minimal shoe sales were up 283 percent. He believes the bigger opportunity is giving the industry a chance to rethink overbuilt traditional styles of the past. "The minimalist trend is clearly having an affect on how a running shoe should be built. What it looks like is more running shoes will start to get closer in minimalist construction to the minimalist shoes," said Photo courtesy of New Balance
Vibram FiveFingers SeeYa
New Balance Minimus Zero Road Photo courtesy of New Balance
Jewell. "There were a couple brands at OR already showing this." He expects the minimal category will continue to see growth but he is not sure if it will become a category of its own "or maybe running shoes meld with minimalism and they simply become the evolution of running shoes." Brooks Sports' President and CEO Jim Weber believes that the minimalism trend will eventually take a hit because many consumers are using the shoes for casual purposes. "We think lightweight is real and it's here to stay," said Weber. It's going to influence everything we build, including our PureProject collection that gets its inspiration from being in tune with your run and the whole feel is the real deal. We've seen this movie before. There are a lot of people merchandising this lightweight product and it's selling to a casual lifestyle - a lot of it is not being run on. That's a wave that is big right now but it's going to crest and break. They always do." Weber noted that a "massive" amount of new brands started appearing at running trade shows three years ago to capture the popularity around technical running. Now, the many new minimal/ lightweight brands coming in are facing an even more crowded running market. "I think the 'feel' running experience is real and we're staying very focused on the runner through this. A lot of casual lifestyle product is being sold alongside that product but not forever,� said Weber. Steve Tower, VP of sales for K-Swiss also said that like all trends, minimalist will be over represented. "The category is not well defined and the consumer is not sure how all the products fit into the traditional grid. The positive has been a lot of innovation. The real result is simple‌ "Lightweight." Core training will still be the most important category." Jared Aldrich, running specialty national sales manager at Merrell, sees minimalism as more of a "movement" than a trend. "Barefoot will be a core part of our Merrell business and is staged to grow more as we bring the benefits of barefoot beyond running and into other outdoor activities like water, train and life," said Aldrich.
Avia Avi-Bolt III
Merrell Road Glove
Brooks Pure Cadance
"We are going to show a commitment to the run specialty channel with a dedicated sales team." But he recognized that the rising number of brands entering the minimal category will be a challenge for retailers deciding on what minimal styles make the cut. "We believe Merrell has a spot on the selling wall based upon our core beliefs and our early adoption into the barefoot category. Our core beliefs would consist of education being a top priority, true barefoot shoes equaling zero drop, and a focus in creating the transitional or minimalist shoes." WEEK 1134 | SGBweekly.com
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Photo courtesy of Pearl Izumi
Aldrich said the biggest side effect is runners rushing into more minimal shoe styles without the proper education. For this reason, Merrell launched an educational microsite and partnered with key ambassadors to develop Merrell BareForm training videos that teach runners the necessary steps to transition to barefoot running. "We will continue to develop our educational assets so our customers and the consumer have what they need for a fun and healthy barefoot experience," said Aldrich. "This side effect will also justify a line of “transitional shoes” that we will launch in Spring of 2012. These shoes will feature less of a drop than traditional shoes while maintaining a level of cushioning that customers are familiar with." Rachelle Kuramoto, co-founder and director of marketing for Kigo Footwear, an eco-friendly minimalist footwear line that marked its second OR show, agreed that while minimalist shoes have proven they can reduce injury, it's not "a panacea for injury or magic performance enhancer." She added, "I think we will see more serious training and education programs, as well as more lifestyle offerings that allow people to walk, play, work, etc. in their minimalist shoes in order to strengthen and prepare their bodies to benefit from natural motion." Kuramoto also believed that the minimalist market will saturate over the next 12 to 24 months, and will start to show a settling with respect to the brands that have lasting power. "Obviously, the larger, more well-funded and more historically relevant brands are positioned for success because the general consumer who is looking to try a minimalist shoe will likely look to a brand they have worn before and have liked," admited Kuramoto. "There are more than a few smaller brands (like Kigo Footwear) that are building slowly and certainly with less fanfare, but that are building specifically minimalist lines for a consumer who is educated and who has selected a brand based on technicality, appearance and versatility. In this timeframe, I believe a few smaller, specialist companies will survive and find a lasting place in the market." She also does not see it as a trend due to the mounting scientific evidence behind its benefits. Said Kuramoto, "I think, rather, that it will evolve to become another sub-category of running and outdoor specialty footwear, designed for people who want – and are trained for – natural motion footwear. I see that it will have use as an athletic lifestyle shoe, a training shoe, and for some, an actual running shoe." Luke Rowe, VP of Business Development at Fleet Feet, Inc., who attended the OR show, agreed that the minimalism/lightweight talk has breathed life into an otherwise stagnant running category. Joked Rowe, "Let’s face it, things were getting pretty boring." He said that having so many brands is fine if they were all developing good product with a meaningful point of view but added, "So many brands are trying to dissect the category and create product that goes beyond what a typical employee of a running store can even discern. Many try to position their product by blasting away against tried and true products. Again, not a bad thing, but difficult for most folks to determine what is real and what is fiction." He added that while new brands can breakthrough, Fleet Feet will likely partner with heritage brands as long as they continue to focus
Hoka One One Bondi B
on improving their product. "We need partners we can count on and with my background on the vendor side I know firsthand how difficult it can be for small brands to deliver anything beyond the product itself," said Rowe. "Established brands have the ability to support our business with reps in the field, experienced marketing teams, and resources that they can apply to our core business needs." He also said Fleet Feet is not convinced the industry will see huge growth across so many minimal styles. "Folks tend to come back to what they know and eventually understand that footwear is an important part of the equation but not more important than nutrition, hydration, rest and recovery, to injury prevention. We see core product getting lighter, but retaining its durability features and we see folks getting more interested in hydration, compression, nutrition and products that support their running,” said Rowe. ■
Where Strategic Decisions Begin SportScanInfo.com A Service of The SportsOneSource Group
Darcy Africa Photo Pearl Izumi 18courtesy SGBofPERFORMANCE
l AUGUST 22, 2011
CHARGE OF THE LIGHT BRIGADE! Spring 2012 will herald a wider range of lightweight running footwear styles as major and minor brands purse their different takes on the minimalist movement. Here, a roundup of several key brand offerings for Spring 2012. By Thomas J. Ryan
ASICS For Spring 2012, Asics will build on its launch this year of its 33 by Asics collection, named after the 33 joints in the foot that allow more efficient movement. Although Asics said it has been encouraging natural foot movement with their Impact Guidance System (I.G.S.) for years, 33 by Asics marked its first approach to the newfound minimalist movement. Debuting December 1 at specialty run accounts, the GEL-Neo33 promises to tell a new lightweight stability story. Said Brice Newton, footwear manager-performance running at Asics America, "It will feature full-ground contact on the outsole to stabilize the foot, positive flex grooves to reduce compression at toe off, and DuoMax on the medial side within the bottom layer of the midsole material providing stability, but not adding weight to the shoe. Runners who need a bit of stability can now join the lightweight running craze." Additional styles in the 33 by Asics collection will include the GEL-Cirrus33 and GEL-Excel33. Also in the lightweight category will be the GEL-Speedstar 6 and a new trail shoe, the GEL-Fuji Racer, debuting at 8.7 oz for a men's size 9. The Asics stability category also gets a big makeover with the new Kayano 18 and GT-2170. Said Newton, "Both new models have increased performance through dramatic weight reduction while maintaining the perfect combination of stability and cushioning."
Asics GEL-Cirrus33
Asics GEL-Fuji Racer
Asics GEL-Cirrus33 the flagship model to the 33 by Asics collection, sets the new standard for cushioning in the lightweight category. MSRP $150 Asics GEL-Fuji Racer will debut as the lightest shoe in the Asics trail line. MSRP $110 Asics GEL-Neo33 is a lightweight, high mileage trainer. MSRP $105 Asics GEL-Neo33
WEEK 1134 | SGBweekly.com
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toe-off, the real “technology” is the way the Sprintweb construction in the upper minimizes layers to peel away grams without sacrificing fit or durability. "Our Lightstrike EVA compound is chemically formulated to reduce weight without sacrificing compression set or function," added Peveto. "Our adiwear outsole has been designed to reduce weight without giving up durability. With adiZero, it wasn’t about taking a shoe and stripping away things - it was about building from zero up."
PUMA
adidas adiZero F50 ultralight trainer with the lightest Formotion™ unit, 235 gms of adiZero™ cushioning, support and performance. MSRP $100 adidas Supernova Sequence men’s running shoe with external heel stabilizer and promoderator+. Dependable, proven performance with the right mix of cushion and support. MSRP $110 adidas ClimaCool Ride offers clean, simple lines sophisticated running style. Minimalist upper promotes optimum ventilation and flexible tooling provides comfort and freedom of movement. MSRP $95
ADIDAS The Adidas brand has undergone a resurgence in the running category. In the first quarter of this year, their running footwear sales were up 30 percent led by the adiZero F50 Runner and ClimaCool Ride. In the U.S., running sales catapulted 65 percent with the help of launches such as ClimaCool Ride. Mikal Peveto, Adidas America's head of running, said the brand has benefited from revamping its entire running line all the way up to its Super Glide 3 gaining traction in run specialty. "The single biggest reason for our renaissance is our focus on building product around tangible benefits of faster, cooler, stronger, smarter, and natural. This approach allows us to introduce meaningful product over the long term," said Peveto. For Spring 2012, the big focus will be on adiZero, a collection the company hopes "becomes the most trusted, go-to collection for runners of all types seeking minimal, lightweight shoes." Peveto said that while Adidas' upcoming Spring 2012 lead adiZero style features Sprintframe technology that energizes each 20
SGB PERFORMANCE l AUGUST 22, 2011
For Spring 2012, Puma will be building on the success of their Faas lightweight running collection, which has been checking briskly since its debut this spring. The offerings will be supported by a fullyintegrated marketing campaign featuring Usain Bolt, according to Tara McRae, VP of marketing for Puma North America. From a product perspective, the Faas 800 Stability Trainer represents "the highest on our cushioning scale that we’ve released thus far," said McRae. Featuring the brand's BioRide technology for a smooth heel-to-toe transition, the shoe is absent of any gimmicks in keeping with the minimalist design across the Faas range. "The stability provided is driven purely by the geometry of the shoe, from its one-piece midsole," said McRae. "The look is great, too. It has a breathable mesh upper that’s in-line with the shoe’s status as a performance runner, a one-piece formstripe, caging unit detailing, reflective elements for nighttime runs, and then some." A new lightweight training shoe providing enhanced agility and mobility that supports side-to-side movement will also be introduced as part of the Faas range and will likewise receive marketing support. Noted McRae, "A great option for a workout class." Other newer styles include the Complete Vectana 3 stability shoe that has shaved off an ounce from the previous version. The upper has also been re-tooled for a much more modern, streamlined look. Based on studies of Jamaican athletes, the Faas 250 TR lightweight trail shoe is also getting attention from buyers. Said McRae, "We’ve done it in a water-repellent performance upper, plus a directional lug outsole for traction. It’s essentially a racing flat, gone off-road."
SAUCONY Saucony for Spring 2012 will be updating its franchise models – the Guide, Triumph and Hurricane – with lessons learned from its experience creating minimalist shoes. Said Patrick O’Malley, Saucony’s general manager of footwear, "It's for the everyday runner who has been running in the Triumph, Hurricane, Guide or other traditional running brand, but with the advantage of using engineering and geometry to create a different feel and running experience." Saucony's minimalist models are also being updated. The Hatori AW (All Weather) shoe features an exterior material for warmth and protection to create a year-round minimalist shoe. The Mirage will be updated to feature "a little bit of extra integrity to the medial side on the midsole" for more guidance, said O’Malley. Its Peregrine trail-running minimalist model will also be updated.
Among its launches this year, the Fast 2 Ride neutral model is generating "double-digit sell-through weekly" while its lightest, lowest profile shoe. Flow, is also being recognized "as a great balance of minimalism without the pain."
K-SWISS While the foundation built on models such as the Blade-Light Run and Kwicky Blade-Light over the last three years, K-Swiss is hoping the Spring 2012 launch of the Blade-Max will bring the brand "back into the mall, back into the better sporting goods distribution channels and become that signature performance characteristic for our brand," said Mark Sheehan, K-Swiss' director of performance footwear.
Saucony ProGrid Mirage 2 is minimally constructed, lightweight, responsive and provides a touch of guidance for the neutral to slight overpronator. MSRP $105 Saucony Hattori offers a zero mm heel-to-toe ratio. The toe box gives room to naturally arch, grip and push off. The sole has a visible flex groove in the back of the toes and front of the metatarsal. The sculpted foam of the sole includes strategically placed impact cushioning and delivers a piston effect without compromising natural motion. MSRP $80
O’Malley believes the minimalist movement will be around for awhile, in part because demand came from the running community. "I think minimalism is here for the long haul and the reason is I think there's some real science behind it. There is some real proof that this stuff works for a lot of runners. Not every runner but for a lot of runners, it does work."
KARHU Karhu will be introducing the next generation of its Fulcrum technology across its collections. Fulcrum design minimizes vertical oscillation and translates more energy into forward momentum. Jay Duke, president of Karhu North America, said the Finnish brand continues to gain ground since its U.S. launch in 2009 because Fulcrum is not an extreme technology that requires the runner to adjust their running form, is not a foot muscle-building shoe, is not a flat shoe that can damage a runner's Achilles, and is not a soft cushioning shoe that creates braking forces. Said Duke, "Karhu running shoes help runners run efficiently and in proper body position to avoid injuries. It is the balance of all the extreme ideas."
Karhu Flow Fulcrum Ride - For the runner seeking speed and response with minimal support and low-profile. Open-face air mesh vamp and closed-face ballistic mesh construction. Three-part molded EVA, compression molded rubber outsole and Ortholite insole. MSRP n/a
K-Swiss Blade-Max™ Glide a neutral running shoe with maximum cushioning featuring GuideGlide construction and breathable, lightweight upper with SeamFree™ technology. MSRP $120 Blade-Max™ Stable is a stability shoe featuring a medial post and GuideGlide™, a unique midsole construction that centers the foot from heel-to-toe. Supportive upper featuring heat welded SeamFree™ technology and an external heel counter for unparalleled comfort and fit. MSRP $125
The collection, arriving in Stability and Glide (neutral) models, features a bigger and more progressive cushioning system designed for higher-volume running. The shoe's GuideGlide sole's dual-density construction provides the ability to tune the hardness to create a more responsive ride in more stable shoes and a more soft-pillowey ride in cushion versions. At the same time, its distinctive "maximum" look helps the Blade-Max stand out. Said Sheehan, "It looks very substantial in your hand but on your foot, it is very lightweight and responsive. It's not your typical high-volume training shoe." On a smaller scale, K-Swiss will be introducing the Blade-Foot, a zero-drop, heel-to-toe shoe as a training tool. K-Swiss will be recommending new runners start using Blade-Foot once or twice a week at around 400 meters to stretch the calf and Achilles tendon. ■ Note: Part Two of the series on the minimalism movement for Spring 2012. To read Part One, "Less is More," log on to SGB Weekly.com / Issue 1124 / June 13. WEEK 1134 | SGBweekly.com
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I AM... SGB PERFORMANCE
JULIE BAXTER Vice President, Moving Comfort
WHAT WAS YOUR FIRST JOB? My dad owned a shoe store in Vancouver, WA. I’ve pretty much been in retail from birth. We sold everything from baby shoes to cowboy boots, nurses shoes, construction boots, and athletic shoes. It was a great learning experience and it gave me the opportunity to learn all facets of the retail business. From there I moved to Seattle and went to work for Jay Jacobs as a junior fashion retailer. I worked there 10 years and then moved over to REI. In my 20-year tenure at REI, I worked in several different roles and departments, my last position being in their private label division.
WHAT DROVE THE MOVE TO REI? I was in my mid-to late-20s and I had been
thinking I looked ridiculous trying to wear the clothes for the teenage girls I was buying for. Plus, junior fashion is a hard place to work. After a hard day at work, I picked up the newspaper, looked at the classifieds and REI had a job opening. The next thing I knew I was working there at a time when REI didn't hire many people from outside the company. Moving from junior fashion to the active outdoor industry was an adjustment, but REI changed my perspective.
IN WHAT WAY? I wanted to connect personally with how I was spending my
time at work. I’ve always been active, enjoy the outdoors, and especially like to ski. It wasn’t long after I went to work for REI that I started to develop even more interests. I took up cycling, which has truly turned into a passion for me. I also started doing runs and worked up to triathlons. Plus, all my work friends were equally interested in outdoor activities and it just became the
normal way to spend time together outside of work. I definitely made life-long friends there not to mention it’s where I met my husband.
WHO DO YOU CONSIDER YOUR MENTOR? There are a few people over the
years who stand out. Certainly Mr. Jacobs, who took me under his wing and offered me the opportunity to learn first-hand what it takes to run a retail business. And it was my time working for Bob Corbal at REI where I learned that you only perform as well as the people you surround yourself with. He taught me a lot about how to treat people—an important lesson for me at that point in my career. Now I have the pleasure of working with Jim Weber, CEO for Brooks Sports, who has taught me so much about culture and about the financial world. As you see, I don't really have one specific person. I've had a whole board of directors!
WHAT DO YOU DO FOR FUN? My husband and I love to cycle, run and do
triathlons together. We enter a couple of races every year. We recently ran the Seattle Rock 'n' Roll Half Marathon. We have three Labrador Retrievers and spend a lot of time walking and exercising them. I also love a great vacation - like Hawaii. If I wasn’t working right now, I'd be on the beach or on a lounge chair by the pool. WHAT ADVICE WOULD YOU OFFER SOMEONE LOOKING TO GET A JOB IN THE RUNNING OR SPORTING GOODS INDUSTRY? Finding a connection between what you enjoy doing for fun and work is key. When I made the decision to try to connect what I love to do with my career, it certainly made a difference in my motivation.
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SGB PERFORMANCE l AUGUST 22, 2011
A layered approach to comfort and durability. T
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Get comfortable at cordura.com/apparel. © 2011 INVISTA. CORDURA® is a registered trademark of INVISTA for durable fabrics. Property of INVISTA.
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