Footwear Plus | March 2023

INTRODUCING THE SS23 CLARKS COLLECTIVE

SONNY HALL

JOURDAN DUNN

MARCELINO SAMBÉ

INTRODUCING

THE SS23 CLARKS COLLECTIVE

SONNY HALL

JOURDAN DUNN MARCELINO SAMBÉ

ROK n ROLL™ redefines comfort & supports you from the ground up. Like all Alegria footwear, the comfort story continues inside and out with a rocker bottom that has superior arch support and a slip-resistant outsole to keep you on your feet all day.

ROK THE DAY, YOUR WAY!

WE WOULD LIKE TO THANK ALL OUR FRIENDS IN THE INDUSTRY FOR THEIR SUPPORT OF OUR PLUS AWARD IN DESIGN EXCELLENCE - MEN’S COMFORT

By Greg Dutter & Bernadette Starzee

MARCH 2023

Publisher

Greg Dutter Editorial Director

Nancy Campbell

Trevett McCandliss Creative Directors

EDITORIAL

Kathy Passero Editor at Large

Kathleen O’Reilly Fashion Editor

Ann Loynd Burton

Contributing Editor

Melodie Jeng

Marcy Swingle

Contributing Photographers

ADVERTISING/ PRODUCTION

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Circulation Director

Catherine Rosario Office Manager

Mike Hoff Digital Director

WAINSCOT MEDIA

FEATURES

36 Artistic License Designers redefine the men’s work wardrobe with an emphasis on hybrid styling for greater versatility. By Kathleen O’Reilly

On cover: Torhill Hi ankle boots by Clarks

Photography by Jamie Isaia; styling by Nancy Campbell; fashion

editor: Kathleen O’Reilly;

model: Noah Hart/ One Mgmt.; hair: Vera Koumbiadis; photo

assistant: Rebecca Steighner; PA/styling

assistant: Eileen Viglietta.

Carroll Dowden Chairman

Mark Dowden President & CEO

Steven J. Resnick Vice President & CFO

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for

are sent at the

Belinda Pina

Suede 9-inch retro boot by Dingo.

chop shop

I EARNED MY retail chops (literally) working as a butcher’s assistant during my college summers in a small grocery in my hometown of Maplewood, NJ. For four years, four months a year (plus holiday breaks), often seven days a week, eight hours a day, and time-and-a-half on Sundays, I endured a baptism by hungry customers, bloody smocks, cold freezers, steamy dumpsters, crazy coworkers, cuts and nicks, and union rules. My tenure provided a crash course in learning how to “work,” from punching a clock to being the low man on the totem pole (hosing out smelly fat cans in 90-degree heat), following orders, and taking the high road—even when the customer wasn’t right.

The butcher shop is where I learned what I now consider the Golden Rules of retail. They’ve come in handy during my 27 years managing a retail trade magazine because, if the past three decades have taught me anything, it’s that retail is retail, be it a butcher shop or a shoe store. Aside from the blood and sawdust on the floor, the demands, challenges, needs, and physicality of those jobs are surprisingly similar. While I’d never call my rules gospel, I’m confident that anyone who’s ever worked a customer-facing job can relate and commiserate.

Rule 1. Retail is Hard Work. Our customers often came in waves, especially on weekend nights when commuters, returning from New York, poured off trains and dashed into the store to get something they could throw on the grill. Daytime weekends were no picnic either. Customers swarmed our glass counter like locusts, waiting for their ticket numbers to be called. They fired a barrage of orders for ground beef, patties, porterhouses, sirloins, flanks, ribeyes, filet mignon, chops, roasts, chickens (usually cut in eighths), kabobs, briskets, cutlets, handmade sausage links, tripe (yuck), smelt (worse), calves’ brains (why?), schools of fish, shellfish, etc. You had to know your cuts and move fast. You were on your feet for hours, with just two mandatory 15-minute breaks and a lunch hour. By the end of a shift, you were cooked.

Rule 2. Retail is Show Business. Running a retail operation is like staging a performance every day. Each morning, before our doors opened, we prepped for what would be an 11-hour show. Our audience could be demanding, but we strived to send them to the checkout aisles satisfied. That required trimming cuts just so and packaging orders neatly in butcher wrap. Our shop was all about the personal touch. Many customers were on a first-name basis with our butchers—a few would

wait until their favorite was free to help them. The shopping experience was a sharp contrast to the larger supermarkets nearby, where it was a self-service, cellophane-packaged exchange. That might have been a few bucks cheaper, but it was dull and impersonal.

Rule 3. Be Respectful. Perhaps the most valuable lesson I learned during my butcher shop days was to have empathy for anyone working in retail. While clerks are there to serve customers’ needs, they are not servants. These hard-working individuals should be treated with respect and decency. I don’t abide by the notorious “customer is always right” maxim. If someone has a bad day, it doesn’t give them license to take their frustration out on a retail employee. By the way, this rule works both ways: Retail employees must show respect and decency to customers, too.

Rule 4. There is No I in Team. I first heard this preached by coaches when I was a kid, but it applies to retail, too. A retail operation requires teamwork and following the chain of command. The staff must work in concert, each performing their roles, for a business to succeed. It only takes one bad smelt to stink up the whole operation. Of course, a good leader who communicates and treats employees well can prevent much potential trouble from happening. Three corollaries: Recognize, reward, and retain good employees whenever possible.

Rule 5. Retail is Essential. It took a pandemic to shine a light on how critical retail is to daily life. As soon as stores went into lockdown, society realized what it had taken for granted. And while online retailing helped fill the void and continues to serve a purpose, millions of consumers have returned to shopping in stores. It’s evidence that retail is much more than a transaction. It’s entertaining, informative, and helpful. It’s also experiential, supports local economies, is more eco-friendly than online sales, and, perhaps most important, enables much-needed human interaction.

You’ll find many more Golden Rules of retail in this issue, which celebrates the winners of the 24th annual Plus Awards. Featured are Lifetime Achievement award recipient Prasad Reddy, CEO of Twisted X Global Brands, whose shoe industry career spans 50-plus years (p. 12); Lori Andre, owner of Lori’s Shoes and winner of the Boutique category (p. 22), who is celebrating her chain’s 40th anniversary this year; the 102-year-old Chiappetta Shoes, winners of the Comfort Specialty category (p. 26); and many other industry standouts. The collective retail wisdom our winners have to offer is astounding. You might even say it rules.

Greg Dutter Editorial Director

French Dressing

Layered looks and chunky soles were à la mode at Men’s Fashion Week in Paris.

Photography By Melodie Jeng

Atlanta Shoe Market Cooking

THE LINGERING EFFECTS of the pandemic, like the virus itself, are certainly not over. But, for at least a few days, there was a welcomed air of business-asusual at The Atlanta Shoe Market last month. Masks were few and far between and the booths were abuzz with buyers, which is no small feat as this marked the largest Atlanta show—at 800-plus brands—in its 79-year history.

“Attendance surpassed our pre-Covid numbers, and we had retailers come from 42 states and 11 countries,” reports Laura Conwell-O’Brien, executive director of the show. “We attracted more company executives than ever before—even Steve Madden made an appearance.”

Marty Rose, distributor of All Black Footwear, credits the show’s ease of exhibiting as a key to its long-running success. “The Atlanta show is the most organized and easiest show to deal with from a vendor point of view,” he says. And even though Italy’s Micam show dates overlapped and impacted upscale buyer attendance, Rose reported strong traffic. “We still had an excellent show, and also opened several new customers,” he reports. “The response to our Fall ’23 collection was very positive based on orders. We also received a strong response to our Spring ’23 case packs.” Rose adds, “The general mood was upbeat. Retailers know what’s going on in the world but remain positive about their customer base and the constant need for freshness in footwear.”

Angela Paterson, director of Business Development for Only Partners, licensee for Soft Comfort and Enjoiya, reported a similar Atlanta show vibe. “We had a very successful show,” she says. “Attendance was definitely at high volume with buyers engaged in purchasing in-season goods as well as for fall.” The response to Soft Comfort’s casual styles was a particular highlight. “Comfort is still the king of categories, and our ultra-light covered wedge construction was on the top of the list for spring in-stock purchases,” she says.

Ditto for Kevin Bosco, president of Bos. & Co., distributors of Fly London, Asportuguesas, Ambitious, and Softinos, as well as owners of an eponymous brand. “Atlanta was a very successful show for our family of brands with three very productive days,” he reports, adding that the show continues to grow in importance. “Despite the times we live in, we found retailers open to view new and fresh looks for Fall/Winter ’23.” Bosco notes that Asportuguesas and Ambitious, in particular, received a strong response. The former’s sustainability story is in step with the times, while the latter nails that casual-yet-dressy sweet spot.

Robyn Shreiber, founder of Beautiisoles, sums up its second Atlanta show as a success, too. “Traffic was good, even though we were in the hallway between the Fashion Village and the main floor,” she says. “In many cases, we just reached out to passersby, and they were extremely impressed with our line, especially our eye-catching boots.” The exec adds, “Some placed orders on the spot, while boutiques with lower price points were more selective. But when the match was right, there wasn’t a price objection.” On that note, Shreiber didn’t hear much negativity related to the economy. “We heard a lot more about women who are ready for heels and dress shoes,” she says.

Lester Wasserman, owner of Tip Top Shoes and West NYC in Manhattan, saw plenty of dressier styles as well as a lot of western looks. While that mirrors the migration to states where western fashion is everyday wear, he’s not all-in on a post-pandemic dress shoes boom just yet. “Western is valid,” he affirms. “And while vendors were showing more dress, I’m not sure the customer is there yet. But there was no shortage of white shoes and lots of lace-to-toe sneakers.”

The biggest show in its history lived up to the hype.

Enjoiya

Asportuguesas

Ecco Pseudo

Wolky

Lamo

Samuel Hubbard

Ambitious

Gaimo

LEADER. VISIONARY.

PHILANTHROPIST. TRUSTED PARTNER.

CONGRATULATIONS ON YOUR LIFETIME ACHIEVEMENT AND DESIGN EXCELLENCE PLUS AWARD IN THE WESTERN CATEGORY, PRASAD!

SALUTE TO ALL OF THE PLUS AWARD WINNERS!

The

24th

Annual Plus Awards

Twisted X® is dedicated to creating comfortable, quality, and innovative footwear. After ten years with over 1 million pairs sold, our “Original Driving Moc” still stands out in the western industry as the original standard of comfort.

Explore over 550 styles in casual, work, western and outdoor markets at TwistedX.com.

REDDY, WILLING AND ABLE

By Greg Dutter

ation of a temple in his then-adopted hometown of Grand Rapids, MI. Reddy’s impressive career includes C-suite stints at Wolverine Worldwide, Freeman Shoes, K Swiss and, for the past 14 years, leading Twisted X Global Brands (owners of Twisted X and Black Star and licensee of Wrangler Footwear). His career is the American dream epitomized—filled with a willingness to continually dream big, even when the risks seemed nightmarish. Taking risks has paid off, especially at Twisted X Global Brands (TXGB), which is on a 13-year run of continuous double-digit growth and profits, increasing by a factor of 20 times over that time span.

PRASAD REDDY GREW up in Chennai, India, with absolutely zero intention of working in the footwear industry. Yet, for the past 52 years—or 18,980 days, give or take a few—he’s done just that. That stretch represents his entire professional career, sans a few months in late 2008, when he oversaw the cre-

Not bad for a company that was in Chapter 11 when Reddy, who had earned a reputation as a company fixer, came aboard. Not only did he rescue the then four-year-old Twisted X, but he has since led its complete transformation, becoming a leader in the western and work categories, introducing revolutionary comfort technologies, and diversifying into rapidly expanding casual segments with an emphasis on sustainable manufacturing. Along the way, the company has built a tremendous reputation for giving back to a range of philanthropic causes. It is also one of the remaining few wholesalers that doesn’t sell DTC. Reddy’s willingness to go against the grain on that contentious issue is rooted in his steadfast belief in doing right by his retail partners—the ones most responsible for TXGB’s success. His approach to building a footwear company is steeped in decades of first-hand experience. He possesses an encyclopedic knowledge of sourcing, logistics, technology, operations, sales…the works. Yet he remains an eternal student of the industry, always seeking ways to learn, adapt, and innovate.

As a kid growing up along the humid shores of the Bay of Bengal, Texas cowboy country might as well have been on another planet. Never in Reddy’s

Prasad Reddy, president and CEO of Twisted X Global Brands, is doing what he’s done for 52 years and counting: making great shoes, building successful brands, sharing the blessings, and loving every minute of it.

wildest dreams would he have envisioned being CEO of a western boot company, let alone living happily near its home base of Decatur, which is just outside of Dallas. So, just how did he get here?

BY

THE NUMBERS

It all starts with an aversion to blood, really. Reddy’s father gave his son two choices: become a doctor or an engineer, like him. Reddy chose the latter. After

earning an engineering degree in India, Reddy attended Ohio University for his master’s degree. As fate would have it, the school was located near Nelsonville, OH, home of Rocky Brands, then known as William Brooks Shoe Co. During Reddy’s studies, a professor was consulting on inventory planning for the company and tapped Reddy to help with the presentation. It was step one in Reddy’s lifelong career in the shoe biz.

“I didn’t have a specific industry I wanted to work in, or a particular place I wanted to live then, but I was always interested in statistics and mathematics,” recalls Reddy. “It just so happened that my first job was working for a shoe company.”

While Reddy was finishing his degree, he came across an ad placed by Wolverine Worldwide seeking a systems analyst. He got the job. “They were looking for people to help develop an ERP system,” Reddy recalls. “Fortunately, I already had some experience in supply chain management and forecasting. That was 1971.”

Reddy immediately made a good impression with his ability to develop data processing systems, product schedules, inventory management, forecasting models, etc. Wolverine’s then-chairman, Tom Gleason, was quite pleased with what became the industry’s first-ever ERP system. He saw enormous potential in Reddy. In 1974, the exec offered the up-and-comer a job in the operations side of the company to work with the factories, warehouses, and sales divisions. That’s when Reddy was really bitten by the shoe bug.

“I knew then that I was going to be in the footwear industry for the rest of my career,” Reddy says. “This industry is just so much fun. I can always keep innovating with new styles and technologies, and whenever I see one of our products on someone’s feet, I feel so proud.”

Over the ensuing 13 years, Reddy steadily climbed Wolverine’s corporate ladder, eventually becoming Group Vice President of Operations. As head of sourcing, he helped move production offshore, including to Brazil, Taiwan, and China. In fact, Wolverine was one of the first footwear companies to make forays into China—although the initial

Happy Trails: Prasad Reddy, president and CEO, Twisted X Global Brands.

test wasn’t a home run. “An agent sold us a bill of goods that he could get casual shoes made for 90 cents per pair,” Reddy remembers, noting it was around the Ping-pong Diplomacy era. “We were so enamored and placed an order for 50,000 pairs and, 18 months later—and 15 months late—they arrived. And we had to reject 45,000 of them because they weren’t up to our quality standards.”

Live and learn, and Reddy always has. His successes at Wolverine far outnumbered his mistakes. By 1987, he could have coasted into a cushy retirement. But that’s just not how Reddy rolls.

THE ENTREPRENEUR ERA

Reddy decided to leave the cozy confines of Wolverine’s C-Suite to take the reins of Freeman Shoe Company, which included the French Shriner label. The men’s dress company was a partnership venture with Neil Harvey, a former Wolverine boss, and venture capital. As a highly leveraged buyout deal, there were signs of trouble, but Reddy was eager to give it a go, fueled by a burning desire to be the primary decision-maker.

“There’s just something about doing something independently, and I wanted to be able to make a difference,” Reddy explains, noting that in a large corporation that’s not easy to do. “There are lots of layers, and you must justify every move. You can’t make decisions fast.” Reddy also sought fewer politics. “Like in many publicly owned corporations, you have to constantly keep selling yourself more than just doing your job well. I was done with that, but I was blessed that Tom [Gleason] allowed me to get to a stage where I believed I could go on my own.”

Over the next five years, Reddy got to test his leadership skills while navigating the competing interests of the company’s various investors. It wasn’t easy. “Wisconsin wanted to keep the factories open for jobs, whereas the venture capitalists wanted to cut costs and sell assets, so growth was not their main goal,” he explains. “And I just wanted to make the most comfortable shoes.”

Reddy did achieve his product goals. During his Freeman Shoes tenure, the company introduced the French Deck construction, consisting of a PU outsole that looked just like a leather sole, and the FreeFlex sole, considered another comfort breakthrough in men’s dress shoes. In addition to Wisconsin, shoes were sourced in Italy, Taiwan, and Costa Rica, while some uppers were imported from India. The made in the U.S.A. component even caught the attention of President Reagan, whose staff invited Reddy to present a pair at the White House in 1987. However, a flair-up in the Middle East put the kibosh on that meeting. Reagan did receive a pair by mail, and he sent a note saying how comfortable the shoes were. “We really developed the most comfortable men’s dress-casual shoes at that time,” Reddy says proudly.

By 1992, however, Reddy had had enough of the internal friction and left to join K•Swiss, which was then owned by his good friend Steve Nichols. Reddy became president of its international division for what was meant to

Zero-X

proves green is good and good looking;

Original Chukka Driving Moc by Twisted X, a perennial hybrid hit.

be an 18-month stint but stretched into 10 very successful years. Reddy, first based in Hong Kong and later in Taiwan, lived up to his job title. “I traveled 20 days a month to establish subsidiaries in Japan, Australia, and Taiwan, as well as developing distribution deals all around the world and finding sourcing partners in China, Indonesia, and Thailand,” he says. “During that time, I visited about 35 to 40 countries.” Eventually, though, Reddy’s wife grew tired of her husband traveling “all the time” and the couple decided to move back to their adopted hometown of Grand Rapids, where many of their friends resided.

Reddy became a consultant, whose clients included Rugged Shark and Phoenix Footwear Group. The latter asked him to move to San Diego and join full-time, but he declined, preferring to stay put for a while. Instead, he took a nine-month sabbatical, donating his time to oversee a “dream project”: the construction of a temple in Grand Rapids. “We built it from the ground up,” he says.

Soon, however, fate steered Reddy back to the footwear world. On the very day of the temple’s completion, Sept. 17, 2008, he received a call from an industry friend in need of his fixer expertise. The friend had invested a lot of money in Twisted X, which had recently filed for Chapter 11. Together they went to Texas to take a look, and Reddy knew instantly there was “something here.” Over the next four to six weeks, he did a deep dive analysis to pinpoint the best way to fix the company. “I felt we could turn it around,” he recalls. “So, that January, we took over 55 percent of the stock, invested some of our money, and presented our plan in bankruptcy court.”

Just what did Reddy see? Quite a few things, actually. He believed operational fixes alone would cut costs significantly. For example, the average price for receiving, processing, and shipping was about $7 per pair at the company’s third-party warehouse, while Reddy knew the industry standard was about $1.50 per pair. In addition, the sourcing staff included about 16 employees working with about five factories in China; Reddy knew the job could be done by four or five people and consolidated into one factory. “I could take about $10 out of the cost of the product at a time the company was losing $10 per pair,” Reddy says. “So, just from an administrative cost perspective, I believed we could break even right away.”

Reddy was also impressed with Twisted X’s boots, which he described as “straight ahead, good cowboy boots.” More importantly, he saw potential for additional categories—starting with work. Reddy’s

Doing the Right Things

NO ONE DEMANDS that Twisted X Global Brands (TXGB) be committed to sustainable design and philanthropic causes. People buy the company’s boots and shoes mainly because they like the way they look, they appreciate the fact that they’re comfortable and built to last, and they’re a good value. The company’s commitment to lessening its carbon footprint and supporting various charitable causes may be added incentive, but CEO Prasad Reddy would do all of it, regardless.

Reddy defines TXGB’s altruistic efforts as “sharing the blessings.” He explains it this way: “My family, the people in our company, and I have been blessed a lot, and it’s great to share our blessings. We’re in position to help people in need.”

This isn’t a recent epiphany on Reddy’s part. It harks back to the day he became a U.S. citizen in 1980. Upon leaving the courthouse, two women representing the VFW gave him a small American flag and a copy of the U.S. Constitution. “Welcome to America,” they told him. “I remember that moment so clearly,” he says. “I vowed that day that I would repay that warm welcome by the VFW.”

A man of his word, TXGB is a longtime supporter of the VFW and, in 2019, became the title sponsor of its annual Voice of Democracy and Patriot’s Pen contest that awards college scholarships to winning students who submit essays. “VFW does so much for veterans, whereas many corporations and our government neglect them,” Reddy says. “And those students’ essays are just so inspiring. To be able to help them attend college is a great honor.”

Similarly, TXGB’s $1.2 million donation to open the Tough Enough to Wear Pink center for people fighting cancer in its hometown of Decatur, TX, assists those in need. “A lot of people working in the western industry don’t even know where to go to get help,” he says. “We welcome all of them, and anyone else.” Reddy adds, “My hope is that other business leaders will open counseling centers near their establishments.”

Reddy says TXGB is just as dedicated to giving back as it is to making great shoes. Of course, doing the latter well enables the company to do the former, but it’s a synergy that suits Reddy and the entire team. “We’re able to make a meaningful contribution philanthropically by doing the right things on the shoe side,” he says. “Our entire team is 100 percent behind this approach, and it’s what unites us all.”

A self-described eternal optimist, Reddy tries to see good in everyone and everything. “I believe in sticking to fundamental values in my personal and business life,” he says. “What we do in life is a means to an end, and that end is supporting our family, faith, and society. Fortunately, I know how to make and sell shoes, so we’ll stick to doing just that to achieve the rest.” —G.D.

From top: Fall ’22 Wrangler Footwear styles; new Tech X by Twisted X collection, a comfort breakthrough in western boot design.

From sustainability to philanthropy, Prasad Reddy takes the high, less traveled road—always.

extensive work and athletic experience would come in handy here. “I believed we could incorporate some comfort features into western and work products,” which would have strong appeal with many of Twisted X’s retailers, he says. “We sold to a lot of farm and ranch stores, which is a very work-oriented customer. I believed we could grow the company by expanding into these categories.”

LET’S TWIST

With Reddy now at the day-to-day reins, Twisted X burst out of the gate. The company broke even its first quarter (a company first). Even better, it has reported a profit every quarter since. Reddy was reinvigorated by the western way of doing business and saw enormous add-on potential. It was a new category for him to reimagine by introducing new comfort technologies, as well as a refreshing throwback to the way business used to be conducted. “It reminded me of the way business was done in the ’70s when it was so much simpler,” he says. “You shake hands and deals are made. Western isn’t as cutthroat and numbers-driven. It’s been a breath of fresh air.”

Reddy got right to work on introducing new technologies and constructions, which have shaken up the category. They include Cellstretch midsole comfort technology and, most recently, Tech X by Twisted X, a revolutionary cowboy boot construction that delivers athletic-like comfort, flexibility, and cushioning housed within classic cowboy boot silhouettes. Before his arrival, change basically consisted of seasonal color updates, a tweak of heel heights, and maybe a different toe shape. “I’m just used to introducing something fresh and different each season to interest consumers,” he says.

Reddy also knew new products would be essential for Twisted X’s survival. That feeling really hit home during his first blazing hot Texas summer. Reddy was shocked by how few orders there were. The rep informed him that no one orders boots when it’s hot. “That’s when I told our financial controller it’s not going to be the same way next year,” he says. “We’re going to introduce casual shoes that will sell during summertime.”

In January 2010, Reddy brought six samples of Twisted X’s new men’s chukka style to the WESA show in Denver. The moccasin-like ankle boot had hints of western, but it was more a sneaker boot than anything else. It was so out there, in fact, that Twisted X’s reps balked at the Frankenstein footwear, warning Reddy that they’d never sell. “They said I didn’t understand the western market. That

Cowgirl couture as defined by Black Star.

Cook Children’s congratulates

Prasad Reddy, CEO of Twisted X Global Brands, on the well-deserved honor of the Plus Award for Lifetime Achievement.

Our patient families, among many others, are fortunate to have benefited from his caring and generous heart.

Shooting from the Hip

Prasad Reddy fires off on hot-button industry topics.

PANDEMIC PIVOT: In 2020, when most companies were drastically cutting inventory and cancelling orders, we made the decision to increase orders because we believed we would come out of this sooner than later and there’d be a massive product shortage. As a result, we grew 55 percent in 2021 compared to 2020—our biggest growth year ever. We gained a ton of shelf space in the process. One of the joys of being privately owned is we don’t have to report to anyone. We can make decisions quickly.

GOING AGAINST THE GRAIN : I tell our team we don’t have to follow the crowd. We can be contrarians—as long as it’s the right thing to do, because we must never compromise on our core values to the consumer, no matter how big we get. So, for example, business colleagues often tell me we could increase sales by 20 to 25 percent if we sold DTC. I refuse. We’ve come this far by being a true partner to our retailers. We don’t want to be in competition with them. We don’t need that 25 percent growth. Besides, how much sales might we lose selling DTC because retailers cut back on doing business with us.

EXPANDING THE PORTFOLIO : We’re always looking for opportunities, but not aggressively. If there’s something that makes sense, we’ll look into it. But we’re not under pressure to beat quarterly numbers at the expense of longer-term health. That said, in January 2019, Black Star looked like the right fit. The brand caters to an upscale, more city-type woman, which we weren’t really reaching with Twisted X. As for the Wrangler Footwear license, they approached us in late 2020 and we were simply honored. Wrangler is the ultimate western brand. There’s no other brand with that level of command and distribution. Our first collection debuted in late 2021 and, after some refining on product and pricing, we’re spot-on. It’s more casual-oriented product as the distribution is a lot of apparel-oriented stores.

IT’S PRIVATE: We prefer to stay as independent as possible, for as long as possible. We’ve received many inquiries—mainly because of my age—but I say let’s keep on doing what we do. Also, we likely wouldn’t have been able to do what we’ve been doing in regard to sustainability, no DTC sales, and inventory strategy if we were part of a large corporation. We definitely wouldn’t have grown 55 percent in 2021. I don’t believe a public company would allow us to pursue our many philanthropic efforts, either. We don’t make money on them. But that’s not why we do it. We do it because it’s just the right thing to do.

PROUD PLEASER: I’m most proud of the association I have with our employees and what our company is accomplishing in terms of product, sustainability, and philanthropy. Seeing our Tough Enough to Wear Pink counseling center (in partnership with Wise Health System) serving people battling breast and other forms of cancer, brings me so much joy. And seeing the joy in the eyes of children, who are fighting cancer, receiving shoes they helped design (all wholesale proceeds go to support Cook Children’s Health Care System) is a different level of satisfaction for me.

FORWARD THINKING : I’m not fixed on specific growth numbers by a set time. We just want to keep doing the right things. I tell our team that all the time: Do the right things with product and the numbers will follow. In the meantime, I’m still having so much fun. I love working with our team and I love working on innovating new products. That never gets old.

DREAMS COME TRUE: I never dreamed in a million years that’d I’d be working in the shoe industry my entire career. It doesn’t add up at all, especially running a western boot company. But I’m glad it has. It’s absolutely the American dream come true for me. And living near Decatur now for four years, I’m 100 percent Texan! (Laughs)

our customers only wear cowboy boots, and they’d never wear those shoes,” he recalls. But a funny thing happened. Retailers who spied the collection off to the side kept asking questions. The reps quickly came to the belief that, to borrow Reddy’s earlier assessment of Twisted X, there was “something here.” By the end of that show, retailers were asking for a women’s version, as well. “It took a few years for the entire industry to embrace the concept, but once some of our more urban stores began stocking the collection it really caught on,” Reddy says. “All of our stores realized they could cater to their customers’ casual needs instead of letting them go to a department store for that.”

Twisted X’s casual segment has been running strong ever since. The segment, along with an expanding work category (including casual steel toe styles for the warehouse and trucking industries and western styling for the oil industry), has spearheaded the company’s overall growth. But

Prasad

IF IT COSTS US A LITTLE MORE TO FIND A GREENER ALTERNATIVE, THAT’S OK.

—PRASAD REDDY

Reddy wasn’t going to sit back, content with two extensions. That’s just not how he rolls.

GREEN DREAMS

After being involved in sourcing for five decades, Reddy didn’t need anyone to point out the enormous environmental footprint the footwear industry leaves behind. Rather than accept that as a necessary evil, he decided to tackle the issue head on. As a result, TXGB has become one of the industry leaders in sustainable sourcing and design.

It started with the launch of ecoTWX, a recycled plastic fabric upper featured on casual slip-ons. Each pair is made from an average of 13 recycled bottles. To date, Twisted X’s efforts have amounted to more than 7.1 million bottles retrieved from oceans and landfills. Since then, TXGB’s eco-friendly initiatives include the launch of corkTWX (noninvasively harvested bark of sustainable cork trees), ecoTweed linings (a 50-50 blend of nylon and bamboo charcoal), the use of sustainable algae and molasses in EVA midsole constructions in place of harmful plastics, outsoles featuring a blend of biodegradable rice husk and rubber, and laces made of bamboo.

Then there was the company’s debut of Zero-X, a breakthrough in sustainable design that debuted in 2021. The highlight is a revolutionary stitching method that eliminates the use of harmful glues. The company’s efforts go far beyond materials and constructions. It has a partnership with One Tree Planted that involves TXGB planting a tree for every shoe sold in its ecoTWX and Zero-X collections (to date, that’s a commitment of 550,000 trees) and has joined the Arctic Shipping Pledge, which vows its products will not be shipped through those sensitive waters. What’s more, the company uses at least 85 percent recycled materials for boxes and catalogs, and now every pair across all TXGB brands features at least one sustainability element.

Why go to such lengths? Why should TXGB be a leader in this effort when the company’s core audience of retailers and consumers aren’t demanding it? Reddy says the decision is morally based. It’s about doing what’s best for people and the planet—even if it cuts into profit margins.

“We just feel it’s the right thing to do, so we’ll keep trying to find ways to get sustainable materials into our product and manufacturing processes,” Reddy says, noting that if the world doesn’t address plastic pollution, 70 percent of marine life will have plastic microfibers in their bodies by 2030. “That’s a shame. So, if it costs us a little bit more to find a greener alternative, that’s ok. If it takes a little bit more effort, that’s ok. It’s all an extension of our constant effort to innovate—and to try and do the right thing.”

At Suddath Logistics, we take great pride in our longstanding partnership with you and Twisted X.

PROPS FOR PRASAD

Industry execs opine on Prasad Reddy’s unique qualities that translate into his five decades of success.

Prasad is STEADFAST, HONEST , and a true partner of Boot Barn. He respects his wholesale accounts and the importance of that channel. He doesn’t sell around us. He maintains the utmost level of INTEGRITY in all of his dealings, and has demonstrated an enormous level of support during tough and boom times. He has built a WORLD-CLASS TEAM, BRAND, AND COMPANY . They’re one of our top five biggest vendors in dollar volume. They deliver a world class assortment spanning men, women, and kids with western, work, and casual merchandise. They also push the industry forward on important issues like SUSTAINABILITY . When I think of Prasad, I think first of great wine! More broadly, sharing a bottle of wine with Prasad is just a physical demonstration of his collegial and partnering style of business. He’s always searching for win-win opportunities and will go to great lengths to make that happen. I’m honored to count Prasad as one of my closest business partners. —Jim

Conroy, CEO, Boot Barn

Prasad always does the right thing. He has integrity, is KIND, BRILLIANT, and possesses an UNMATCHED WORK ETHIC . He always puts others before himself, finds the good in everything, and ALWAYS DOES THE RIGHT THING. Prasad has built a culture at Twisted X based on teamwork and giving back to the community. His COMMITMENT TO PHILANTHROPY and sustainability is beyond amazing. His love of product and innovation is unmatched. —Scott

Sessa, SVP business development, Twisted X Global Brands

Prasad has been an industry colleague of mine for over 20 years. We’ve often reached out to one another to discuss the latest sourcing and product trends. He’s INCREDIBLY KNOWLEDGEABLE in regard to sourcing, operations, and logistics. He’s also one of the MOST HUMBLE INDUSTRY LEADERS I’ve met. The humblest of the humble with the KINDEST SMILE in the industry. Prasad has truly realized the American Dream!

—Greg A. Tunney, president and CEO, Manitobah

Prasad is an opportunist. He’s always looking for new ways to by CREATIVE AND INNOVATIVE with footwear as well as business operations. “We’ve always done it that way” and “We can’t do that” are unacceptable responses. He prefers, “Let’s figure it out” as a response to any unknown. Prasad is a PEOPLE-FIRST LEADER. For example, it’s important to him that we offer great health and retirement benefits. Prasad will tell you it’s more about DOING THE RIGHT THING than doing a good thing. The same goes for our SUSTAINABILITY and PHILANTHROPIC EFFORTS: it’s the right thing to do efforts. He cares about the world we’re leaving our children and grandchildren. It’s important to him as a member of the human race, so it’s important to him as a footwear maker. But he never wants credit for any of it. —Jeff Jones, CFO, Twisted X Global Brands

Prasad is respectful to all, beyond giving, steady, PATIENT, LOYAL, AND APPRECIATIVE. He cares about people, and he’s surrounded by a POSITIVE LIGHT. Prasad always operates with an open mind and is curious about new ideas and ways to do things differently. He’s never quick to say no; rather he graciously listens and forms his opinion after thorough consideration. We’re so proud that Twisted X was one of our first trusted partners. His SINCERITY, RESPECT FOR OTHERS, demeanor, and humble confidence in the great brands he has built is so unique. The success of Twisted X clearly proves that cutthroat and fast doesn’t always win the race. —Trisha Sweeney, executive vice president of sales, Syndic8

In the not-for-profit healthcare space partners like Twisted X Global Brands are rare. Prasad and his team embrace the promise to help children with us like no other, and they believe in helping us treat the whole child. That means, for example, working alongside us through this unique opportunity to showcase patients as artist and shoe designers. This dream of Prasad’s to EMPOWER, SUPPORT, AND CONTRIBUTE to healing our patients through art is evident by the smiles on both our patients and their parents. At the core of every child is

the desire to PLAY, TO CREATE, to simply be a kid. Our design collaboration project allows our patients to be kids! He takes the time to interact with patients and parents. He always asks the vital question: What’s best for the patient and family? This is extremely rare in our work! Prasad’s INCREDIBLE GENEROSITY is leading to hope for many of our patients. —Grant Harris, SVP, Chief Development Officer, Cook Children’s Health Foundation

I first came in contact with Prasad during a phone interview for the position of Chief Marketing Officer and we met the next day for an interview. HE’S A FAST-MOVER. I had an offer in my inbox by the time I got home. He’s also EXTREMELY DRIVEN and prides himself on doing things uniquely and independently. He doesn’t follow the pack; he likes to be in the front leading and creating. Prasad loves product. Creating PRODUCTS THAT INNOVATE speaks to his core. He’s also a wonderful listener—something many CEOs aren’t good at. He has a beautiful balance of patience and action. He has a BIG HEART and cares deeply for his community. He wants to make a difference in the world. He wants to share his blessings. —Tricia Mahoney, CMO, Twisted X Global Brands

Prasad’s relationship with the VFW began in 1980 when he was welcomed as a new citizen of the United States by our Auxiliary members. His FRIENDSHIP has expanded far beyond that to the VFW Foundation staff, leaders, and members. Twisted X Global Brands’ support is vitally important to the VFW. As the title sponsor of our annual youth scholarship competitions, their support ensures we’re able to foster and perpetuate PATRIOTISM among America’s youth and treat our scholarship winners to a once-ina-lifetime experience touring our nation’s capital. Prasad is arguably the most GENUINE AND CHARISMATIC PERSON I’ve ever had the pleasure of working with. His LOVE FOR LIFE and the positivity with which he approaches every opportunity is inspiring. —Lynn Rolf, director

of programs, VFW

Rocking and Rolling

Skechers marked its 30th anniversary in record-breaking fashion across all facets of its business.

SKECHERS SURELY DIDN’T get into any Covid-related pickles in 2022. Quite the contrary, as the company celebrated its 30th anniversary with an array of successes. Highlights included record sales ($7.4 billion on growth of $1.1 billion); surpassing 4,500 stores, including new flagships in Madrid, Rotterdam, and Dublin; expanding on its tagline as The Comfort Technology Company with the launch of Skechers Hands Free Slip-ins; and pushing the performance envelope with the debut of Skechers Viper Court, the first-ever Pickleball specific footwear, now endorsed by top pros Tyson McGuffin and Catherine Parenteau.

All that (and plenty more) in the face of pandemic challenges are nothing short of “remarkable,” says Skechers president Michael Greenberg. “Our annual sales record and many achievements were the result of four record quarters, our flexible and dedicated global team, our extensive distribution network, and we believe the most comfortable footwear available,” he says. “All told, we’re very pleased with our ongoing progress toward reaching our goal to surpass $10 billion in revenue by 2026.”

To achieve such growth requires firing on all cylinders. That includes consumer-facing products, stores, and marketing, as well as various behindthe-scenes mechanisms, including completion of its LEED-certified Gold, 2.6-million-square-foot North American distribution center. In addition, phase two of the company’s China distribution center expansion began with a goal of completion in 2024, and ground was broken on phase one of a 1.1-million-square-foot distribution center outside Mumbai, India, with a goal of 660,000 square feet fully operational by the middle of this year. Skechers also opened and expanded into new facilities in several countries in South America. Last but not least, the company finished the expansion of the first phase of the Skechers Corporate Headquarters and Design Center. “This expansion allowed us to showcase our product to domestic and international partners over September and October,” Greenberg says. “When complete by 2026, the center will be more than 330,000 square feet and developed to achieve LEED Gold certification.”

On the product front, Skechers continued to focus on its core design principles: comfort, innovation, style, and quality—all at a reasonable price. “These tenets are thought about in every category, collection, and shoe we develop,” Greenberg says. “With this in mind, we’re able to deliver the most comfortable, best-looking, and relevant footwear available.” That effort, in 2022, spanned casual items, like Hands Free Slip-ins for men, women, and kids; performance items, such as Pickleball shoes; and fashion styles, such as Skechers Uno, which have been on runways and influencers around the world. There were also popular collabs, including with Tokidoki and Demon Slayer.

Skechers also remained committed to its mantra of “untold equals unsold” with splashy marketing campaigns throughout 2022. It kicked off in February with two Super Bowl spots featuring Willie Nelson. Other ads over the year featured celebrities Amanda Kloots, Martha Stewart, and pop singer Chesca. In addition, endorsers Matt Fitzpatrick and Brooke Henderson both won major championships wearing Skechers Go Golf footwear, and the company became the official footwear sponsor of the Professional Pickleball Association Tour. The year, of course, was not without challenges. Greenberg says Skechers experienced logistical and freight issues that have impacted the entire industry since the pandemic, which created inventory congestion throughout the distribution channel. What’s more, Skechers’ annual growth was offset by a 15 percent sales decline in China due to Covid restrictions. Fortunately there is improvement on both fronts, according to Greenberg. “Many of the supply chain issues have started to moderate, and the recent elimination of the zero-Covid policy should be positive for our business in China as consumer shopping moves closer to normalized levels through 2023,” he says.

Greenberg credits the entire team for overcoming the obstacles faced in 2022. “We truly have the most talented, passionate, dedicated team in the world,” he says. “None of this would be possible if it weren’t for those who work at our corporate headquarters and in distribution centers, our sales teams in the field, and our retail associates throughout our global network of Skechers stores.”

Greenberg believes that the team’s performance is proof that Skechers’ strategy for growth is solid. “This milestone year is just the beginning,” he says. “In many ways, the brand is in its infancy, no matter how big our global presence feels, no matter that we’re now the third-largest [footwear] brand in the world, and the top brand in markets like India and across much of the Middle East.” Greenberg adds, “The potential for growth for the next 30 years is incredible. We have so much more ahead of us and beyond our $10 billion goal by 2026.”

In the meantime, Greenberg is proud of all that Skechers has achieved and the team making it all possible. “Every moment that went into achieving our record annual revenues is due to the flexibility, creativity, and dedication of the entire Skechers organization,” he says, citing 2022 as one of the most turbulent economic environments in the company’s history. “Our commitment and ability to execute in the face of these headwinds and to achieve recognition—such as Footwear Plus’s Company of the Year for the tenth time—is due to this spectacular organization. I’m most proud to see the most talented team in the world creating, building, and executing. To see that vision come to life—be it New York, London, Madrid, etc.—there’s nothing like it.” —Greg

Dutter

COMPANY OF THE YEAR & KIDS’: SKECHERS

Skechers president Michael Greenberg and the Viper Court Pickleball shoes in action.

Go Where You’re Happiest

Celestine Black

BOUTIQUE: LORI’S SHOES

The Right Stuff

Lori Andre, owner of Lori’s Shoes, reflects on the keys to the Chicago chain’s staying power.

LORI’S SHOES’ 39TH year in business was a real charm. Sales within its three Chicago-area locations rose a robust 25 percent over 2021 and “definitely beat” 2019’s numbers, which owner Lori Andre says was a “very good year.” While the success is attributable, in part, to a pent-up demand of customers excited to touch and try on merchandise again, the exec believes it goes much deeper than any post-lockdown bounce. Like, 39 years deep.

“We’re so in tune to the pulse of our business, having been doing it for so long and building our reputation and unique ‘Lori’s aesthetic,’” Andre says, noting that there are many factors involved. “We’re in a unique position because we can be proactive as well as reactive. We know how to manage a business from costs and margins perspectives, we have capital to buy merchandise, we react quickly to trends, we have a unique selection, and we provide great customer service. So, just living, breathing, and eating this business every day is what’s made us successful over these years.”

Take, for example, Lori’s Shoes’ presale initiative program, now in its second year. The program test-markets its private label lines, L’idea and Ma ’91, online before bringing in inventory to the stores. “It’s a great way to get new product in front of customers’ eyeballs,” Andre says. “It also offers an opportunity for us to get reads on items, be it a need to increase or decrease factory orders or address any fit issues. Again, it’s a combination of being proactive and reactive that really lends to our business being successful.”

It helps, Andre believes, that Lori’s Shoes is one of the sole survivors in the area for consumers who understand and appreciate its merchandise mix—one that’s priced in a sweet spot of $128 to $248. “It’s just a sign of the times where the amount of small, independent retailers, especially in Chicago, is fewer and fewer,” she says. “We’ve been fortunate to have the staying power to still bring in incredible product that our customers really appreciate.”

Andre notes customers’ appreciation was strong enough to even absorb about $10 price increases passed on last year in its private label brands. The increases were due to a spike in shipping costs from its Italian factory partners. “You don’t want to scare away customers, but we offer unique product with a strong perceived value at a very good bridge price point where there just isn’t that much else out there now,” she explains. “That in-between spot is where we’ve really found our niche.”

That niche now spans cherry-picked, more price point-driven items from brands including Jeffrey Campbell, Intentionally Blank, Steve Madden, Dolce Vita, Andre Assous, Pelle Moda, and Silent D. “We do a really amazing business with those brands, but we’re buying less breadth and more depth,” Andre says. “Those items fill the gap because we have generations shopping

in our stores, and younger customers may not be able to afford $248 shoes, but they’ll spend $128.” Layered on that are the higher-priced, private label lines, which now account for nearly 70 percent of Lori’s Shoes’ total footwear sales. Andre says it’s another sign of the times, as the exclusive merchandise is an effective way to draw traffic and maintain strong margins. “We’re not as tied into those MAP policies,” she says. “Our private label brands have been a real advantage for us, whereas a lot of smaller independent retailers don’t have capability to do that.”

That’s where Lori’s Shoes’ ace up its sleeve comes into play. Namely, Andre’s son, Matthew. The Parsons School of Design graduate has overseen the private label brands for the past five years. (Prior to that, he was an assistant designer for Katy Perry Footwear and, before that, worked for a year in an Italian shoe factory.) The prodigal son’s return, though, was initially brought on because Andre’s husband and business partner had been diagnosed with a terminal illness and the couple was contemplating closing. “That’s when my son suggested using his skill set to work on the private label brands,” Andre recalls. “Now he manages the design, components, tech packs and materials, and working with our factories. He’s being groomed to take over the entire business, as he’s got a fortunate combination of business acumen and creativity.”

On that note, Andre credits her entire team of 38 employees for making Lori’s Shoes a success. “We’re so fortunate to have such an incredible staff, many of whom have worked for us for a long time,” she says. “Our people are invested. They stick around and want to see success, and we take really good care of them.” Andre adds, “I have no complaints about our staff. They’re the reason I’m here every day. They drive me to be a better owner and manager, and to make this truly a partnership.”

As for Lori’s Shoes’ 40th anniversary milestone in 2023, Andre says the years have flown by. But it’s never been a “job.” “I feel so fortunate because I still love what I do,” she says. “I still have a passion for this business. I love product. I love the people. I’m still excited to go to work each day. I couldn’t imagine doing anything else.” —G.D.

Siting pretty: Lori Andre surrounded by some of her latest loves.

To the Max

THIS BRAND IS on fire

Hoka, a division of Deckers Brands, eclipsed the $1 billion annual sales mark in 2022. For the first three quarters of 2002, the maximal cushioning brand only picked up steam as the year wore on. Net sales rose 54.9 percent to $330 million in Q1, followed by a 58.3 percent jump to $333 million in Q2 and a meteoric increase of 90.8 percent to $352.1 million in Q3. Not bad for a brand that amassed just $2 million in sales when Deckers acquired it in 2012 and hit a mere $350 million in 2020.

What is fueling this epic run? For starters, Hoka has expanded well beyond its original core audience of ultra-marathoners, who became disciples of its max-cushioning technology at a time the industry had gone minimalist mad. The collection has since expanded into trail running, hiking, walking, and even weight lifting styles—proving its maximal midsoles have many applications and broad appeal. Consumers are buying into Hoka’s design premise that more cushioning helps prevent repetitive impact injuries that enables them to keep doing the exercise activities they enjoy. Plus, the shoes just look funky, in an over-the-top, techy way—and that hits on the old sneaker market adage: bells and whistles sell.

“Hoka looks really fresh and new in the market,” says Matt Powell, an advisor with Spurwink River, a retail consulting firm. “The big brands all look tired. Consumers want uniqueness and freshness, and Hoka checks these boxes.” Even in the face of strong economic headwinds and an overall athletic market malaise, Hoka raced forward. But that was of little surprise to Powell. “Consumers have consistently shown that they will buy products that are fresh and unique,” he says.

“It really was a very good year for Hoka,” affirms Colin Ingram, vice president of product. “Our last quarter of 2022 certainly was cause for celebration, and while our product is at the heart of what we do, the emergence of the brand itself has been the over arching accelerator of sales.” The exec points to investments in athletes, events, and brand marketing as reaching more consumers who were able to learn about the Hoka’s unique attributes and what the brand stands for. “Last year was a tipping point to where you increasingly saw Hokas being worn across a broad array of demographics,” he says. “People are understanding our value proposition, and that our values that have resonated in the core running, outdoor, and triathlon communities also resonate globally.”

Lester Wasserman, owner of Tip Top Shoes and West NYC in Manhattan, reports 2022’s Hoka sales were at another level. “We’ve been selling Hoka since 2015 and sales have grown steadily, but the growth since 2021 and, specifically this past year, has dwarfed any prior year,” he says, citing the Bondi 8 and Clifton styles as the most popular along with “outstanding” sales of the Speedgoat 5 and Anacapa trail styles. “Hokas have tremendous shelf appeal. There’s visible technology that looks comfortable on the wall, and once the customer puts it on, it’s a sale,” Wasserman says.

Nick Krouse, director of footwear for Fleet Feet, reports a similar resounding success across the chain’s 250 running specialty stores nationwide. “As a brand that, a short time ago, was just cracking our top 10 list of footwear brands, Hoka has made remarkable strides in market share, which is now close to a quarter of our total footwear sales,” he reports. “It’s a direct reflection of their relentless pursuit of their vision, mission, and product evolution. They’ve done a tremendous job partnering across our brand to create a deep and meaningful partnership to support our local stores, and they also collaborate on storytelling moments and initiatives such as ‘Humans of Hoka,’ ultimately leading to increased customer demand.”

In addition to the Bondi 8 and Clifton 9 that ranked consistently as Fleet Feet’s top-selling styles—both in-store and on fleetfeet.com—Krouse cites the updated Mach 5, a lightweight shoe for up-tempo runs, as a big seller. “It’s the shoe where you really want to fly, and it garnered a lot of positive attention from our customers,” he says. “And as a brand with roots in off-road styles, it’s important to call out the success of the Speedgoat and Challenger trail runners for their durability and versatility across varying terrain, as well as the Arahi and Gaviota styles, which were key in Hoka’s support category.”

Krouse says Hoka’s max design premise has broad appeal for performance reasons as well as aesthetically. “A lot of runners and walkers find the classic Hoka combination of a thick midsole, low heel drop, and rocker shape to be quite comfortable, so it attracts a broad spectrum of consumers,” he says. “That includes people who regularly run, casual wearers who like the visual aesthetic, wellness seekers wanting a versatile shoe that can be used for a variety of activities, and health care and service industry professionals who need a comfortable shoe while working on their feet all day.” —G.D.

HOKA : BRAND OF THE YEAR & ATHLETIC

Hoka is setting a torrid pace.

Colin Ingram, VP of product, Hoka

Hoka Bondi 8

COMFORT SPECIALTY: CHIAPPETTA SHOES

Best of Times

Chiappetta Shoes reported its biggest year in its 102-year history.

THOUSANDS OF RETAILERS nationwide were pleased just to tread water in 2022 amid a lingering pandemic and record inflation. Plenty of retailers, sadly, capsized. Then there was Chiappetta Shoes of Kenosha, WI, which simply blew expectations out of the water, registering record sales of 19.2 percent year-overyear growth and a 48.2 percent increase compared to 2019. What’s more, the success was achieved while the business was in major move mode to its new, much bigger digs nearby, which it completed doing last month.

Tony Chiappetta, a fourth-generation owner, credits the “responsible” growth primarily to channel diversification that spans in-store, Amazon Marketplace, website, and shoe repair shop, which offers a service that has become increasingly rare and hard to find elsewhere. “Channel diversification—like doing as much as we can on Amazon without leveraging too much time or money—has been a winning solution for us,” he explains. “We also spent an extra percentage on our forecasted marketing budget on TV in the Wisconsin and nearby Illinois markets that performed very well.”

Tapping into the Illinois market was a key factor in the store’s success last year, Chiappetta says. It helps, he adds, that the local government is pro-business oriented. “Our government is very good at trying to get people from Illinois to shop here with lower taxes and gas prices,” he says. “And we did a better job of reaching them. We pulled in a wide variety of people from over a 40-mile radius.”

Helping draw traffic is Chiappetta Shoes’ strong pedorthics business, which accounts for about 50 percent of overall sales. The store is a destination for people suffering foot and back pain. “Pedorthics is any comfort retailer’s savior,” Chiappetta offers, noting that it’s a specialized skill spanning assessment, manufacturing, and implementation of medical solutions to alleviate customers’ problems. “It’s real, and people will pay for it if you’re good.” But rather than have that segment be at the mercy of doctor referrals, Chiappetta’s approach is to market the store as a first recourse. “Ninety-five percent of our pedorthics marketing budget is DTC,” he says. “We want to be the customers’ first step toward improving foot health—and a lot of times, we can solve those problems quickly, efficiently, and often for less expense than various and multiple doctor visits.”

Chiappetta Shoes also caters to a broad demographic that stretches beyond pedorthics. European comfort brands such as Birkenstock and Taos help attract a younger audience, which Chiappetta says is hugely important. While not huge, the shoe repair service serves as another draw. “Our repair shop is very busy, which represents another diversification of sales angle,” he says. “It gives people another reason to come to our store. It’s good business, if you do it right.”

Another aspect Chiappetta Shoes continued to do right in 2022 was its annual tent sale, held in July. What started out in 2020 as a necessity to move the clearance sale outside has evolved into a big deal. That starts with renting a really big tent, at about 2,700 square feet. “Moving our clearance sale outside was something new, and our customers have gotten excited about the new format,” Chiappetta says, noting sales jumped 35.7 percent over 2021. “My theory is to go big. We get about 6,000 pairs in that tent, so when people walk in they say, ‘Wow, there’s a lot of shoes in here.’ The grandiose factor has been key to it becoming such a success.”

Speaking of thinking big, Chiappetta believes the move to the new building, which is about three times the size of its former 5,300-square-foot location and includes a new 48-spot parking lot, will result in much bigger business in the years ahead. In fact, the move alone has helped generate buzz among the community. “It’s greatly impacted the awareness of anything we’ve been doing,” he says. “We’ve seen an organic increase in socials, as people like good news and not BS news like donations and sales. We’re making sure our investment in the new space matters, and will continue to leverage on that.”

Another key ingredient to Chiappetta Shoes’ success is patience. Specifically, waiting to make smarter decisions. “It’s about knowing your strategy for growth and being aggressive, but not forcing anything just to make something happen,” Chiappetta explains. The new location is an example. “We’d been looking for about four years and were in deep negotiations on a site where would’ve paid triple what we are now. Fortunately we decided not to overleverage ourselves and to be patient.”

Last but surely not least, Chiappetta cites his employees as the most important ingredient to the store’s ongoing success. “Maintaining relationships with the people that make your business tick is essential. Our record year is a tribute to our staff, who helped keep it all running smoothly,” he says. On that note, Chiappetta is proud the business will be growing its employee count in the new space and has promoted one of its resident Shoe Dogs, Joe Diefenbach, as general manager to help in that effort. “Managing employees and maintaining relationships is a labor of love, just as much as helping your best friend’s Grandma Betty with her bunions,” Chiappetta says. “Anything worthwhile takes work.” —G.D.

Team Chiappetta Shoes: owners Fred, Tony, Lori and Nick.

Inner Workings

OrthoLite, the world’s leading supplier of insoles, posted its second straight year of record sales.

THROUGH ONGOING PARTNERSHIPS with 500 brands, OrthoLite supplied insoles for a record-breaking number of shoes (more than 600 million pairs!) in 2022. Turning 25 last year, the company marked the milestone by continuing to innovate and expand production capacities across the globe. In short, OrthoLite kept on being OrthoLite.

The company’s ability to develop new formulations to help brand partners set their insoles apart in terms of comfort, performance, and sustainability has been integral to its long-running success. The innovation highlight of 2022 was OrthoLite Cirql, the world’s first circular foam material solution for footwear components. The material effectively replaces harmful plastics, like EVA, with a 100-percent biodegradable alternative without compromising comfort or performance.

Another key selling point for OrthoLite has been its capability to mitigate brand partners’ supply chain risks with an expanding global manufacturing footprint. That includes six owned-and-operated, vertically integrated factories. Three of these factories are undergoing Higg Materials Sustainability Index verification, which is designed to compare the environmental impact of different materials so manufacturers can make eco-friendly choices.

Here, OrthoLite founder and CEO Glenn Barrett details some of the inner workings that fueled another banner year. —Bernadette

Starzee

How was business in 2022, and how did it compare to 2021 and prepandemic? In 2021, we set new records in terms of pairs supplied globally, but we also achieved record-setting delivery key performance indicators during extremely challenging market conditions. In 2022, we retained this momentum through the ongoing support of our brand partners as we expanded our product capacities across all regions. We once again exceeded overall budget expectations, and we also achieved a consecutive record-setting year by supplying over 600 million pairs of shoes with OrthoLite in 2022. This growth was driven by our continued collaboration with 500 of the leading global footwear brands. We’re extremely grateful for their support, and our current growth trajectory is a testament to the trust these brands have placed in our company, in our technologies, and in our operations.

What were some key product highlights of the year? Operating sustainably has been central to our DNA since our founding. Since day one, every OrthoLite insole has contained a minimum of five percent recycled rubber. We keep striving to find new formulations that deliver sustainable comfort and performance. Our innovation story in 2022 was led by the introduction of OrthoLite Cirql, the world’s first circular foam material solution for footwear. The patented foam material offers an EVA-free, scalable, and truly circular material to OrthoLite’s brand partners and factory stakeholders beginning this year.

We’re also very proud to launch specialty innovations for our brand partners with O-Therm, the first and only insole technology that creates a thermal barrier and elevates footwear temperature regulation through infusing open-cell polyurethane foam with our proprietary aerogel. New product innovations—including ESD Shield, HybridPlus-Recycled, and HybridPlusBio—enabled us to continue to offer our brand partners the solutions they need to differentiate their products.

In addition to great product, what were some other successful brand initiatives introduced in 2022? We’re very proud of the fact that we continue to strengthen our global footprint and local-for-local manufacturing strategy with our six owned-and-operated, vertically integrated factories, which deliver consistency, quality, capacity, and speed to market for our brand partners worldwide. In 2022, we expanded our European factory presence by opening a larger facility in Almansa, Spain, which now gives us a hub for our European-based brand partners. We can deliver localized solutions, more capacity, best-in-class sustainable manufacturing processes, and speed to market—all of which mitigate the risk our partners navigate daily in their businesses. From Spain, we can deliver to any point in Europe within two to four days. Similarly, we expanded our global footprint in Asia, one of the premier footwear manufacturing regions in the world. OrthoLite India is now fully operational and ready to further expand local capacities to meet the needs of our brand partners. Our new, stateof-the-art manufacturing facility catalyzes local-for-local production and service, while also ensuring an important layer of risk mitigation for our global brand partners, as well as for India’s leading domestic brands. What was the toughest challenge faced in 2022, and how did you overcome it? The biggest challenge has been the constant adjustments managing and planning for the production migration that we have seen over the last 12 to 24 months. Brands are moving production allocations across numerous regions to avoid supply chain or other pandemic issues. Having both the largest global footprint and overall capacities has enabled OrthoLite to provide the necessary layers of risk mitigation to our brand partners. These significant investments into additional capacity expansions, production redundancies, automation, recycling, sustainability, and other efficiencies has paid dividends for both OrthoLite and the brand partners putting their trust in us. Despite the supply chain woes and other related disruptions, we’ve been able to provide the consistent local-for-local delivery expectations demanded of OrthoLite across all the major regions. Being vertically integrated and owning the means of production gives OrthoLite a distinct leadership advantage that further positions us for success going forward.

INSOLES: ORTHOLITE

O-Therm insoles

Glenn Barrett, CEO, OrthoLite

WOMEN’S COMFORT: DANSKO

Dressed for Success

Dansko hit on the needs of its customers, many of whom sought back-to-work styles.

DANSKO HAS COME a long way since 1990 when its founders launched the brand in the U.S. by selling clogs out of the back of a station wagon at area equestrian events à la how Nike founder Phil Knight introduced its running shoes at local track meets. The now iconic Professional clog, led by its ergonomic contoured footbeds and generous wiggle room for toes, fast became a hit with nurses, hospitality workers, teachers, and many others who spend long periods of time on their feet.

Since then, the West Grove, PA-based company has expanded into a wide variety of silhouettes, colors, and materials—always with comfort at the forefront of the designs. Last year was no different. Dansko reported success with an expanded sandals collection in the spring and followed that up in the fall with a broad range of boots, flats, casual sneakers, Mary Janes, and, of course, lots of cool clogs. In particular, the company reported a strong response to its dressier styles as consumers returned to offices.

Here, Kitty Bollinger, executive vice president of sales and marketing, and Vice President of Design Kelsey Jayne Gomez discuss the highlights from 2022. —B.S.

How was business in 2022, and how did it compare to the year before?

KB: Dansko had a strong 2022, particularly our spring season. For the full year, we were up versus 2021, though not as much as we had planned coming into 2022.

What were some key product highlights of the year? KB: Last spring we were able to expand on our success with key sandals, specifically the Reece, Rowan, Tiffani, and Marcy styles, and added to our offerings in lifestyle sandals with the athletic-inspired Racquel. Moving into fall, we saw a considerable increase in demand for back-to-work shoes. Whether it was our old faithful Fawna Mary Jane, the sleek flat Larisa, or the brand-new Callista heeled Mary Jane, consumers view Dansko as an essential for workplace style.

KJG: The best looks of 2022 included stapled styles like the Tiffani Mary Jane and Sassy cut-out clog, as well as dressier styles like the Callista Mary Jane and Larisa flat. Tiffani and Sassy feature new looks on Dansko classics, with updated leathers, details and, of course, never-ending support. We really dug into the interiors of our new dress collections, building out the best support and comfort possible while providing dressier styling for work looks. With our Reece and Rowan sandals, we introduced new colors and materials for our best footbed flats, making them able to style up or down. With our lifestyle shoes the Pace and Racquel, we innovated the best interiors again but with the emphasis on walking comfort.

In addition to great product, what were some other successful brand initiatives introduced in 2022? KB: Community is a central component of Dansko’s enduring success. Our consumers and retailers foster this with Dansko in-store events, product feedback, and social media engagement. Our employees thrive as a community as well. One of our most successful initiatives in 2022 was returning to the office. When we are together, collaborating in person, we excel. As simple as it sounds, reinforcing our commitment to community was an initiative that made us stronger.

What was the biggest surprise of the year? KJG: We can have great success in several categories when the product is right. And even when times are tough, we have a fiercely loyal consumer.

What were the toughest challenges—be it supply chain woes, record inflation, ongoing pandemic, etc.—and how did you overcome them?

KB: Is “all of the above” a fair answer? Overall, our biggest headaches came from lingering supply chain issues. Once the factories were back to capacity, the increased transportation time negatively impacted our on-time delivery goals. We are fortunate to work with amazing factory and logistics partners, and their efforts to prioritize our key constructions meant that our disruptions were a hurdle, but not an insurmountable obstacle to our success.

KJG: Another big challenge was figuring out consumer priorities as the world shifted back to work and making sure we were in front of them. In many ways, priorities for consumers have changed, so we built product that supports their desire for max comfort and versatility.

How would you grade your team on its overall performance navigating through such difficult challenges? KB: As a 100 percent employee-owned company (ESOP), our team is crystal clear in that everything we do impacts the families of everyone who works for/with Dansko. Navigating through challenges with this mindset means that we make decisions with Dansko’s long-term goals always in mind. Our team did not lose sight of this and emerged from a difficult time period prepared for a phenomenal future. So, I guess that means I’d give them an A.

What was your biggest takeaway from the year? KB: My biggest takeaway is that our consumers, retailers, and employees are steadfast in their loyalty to Dansko.

KJG: During challenging times, you can’t stop innovating. As a brand, we truly aim to deliver on comfort, not only the literal physical comfort, but also the comfort of feeling joy at a “shoe shopping discovery” or the life that a new shoe brings to an old favorite outfit. We never lost sight of that joyful moment we are trying to provide to the consumer.

Sporty nice: the Racquel pumped up sandal sales.

The Callista was a big hit with the return-tooffice crowd.

Winning Formula

Ecco focused on core categories and revamped its distribution strategy to drive growth in 2022 and beyond.

center of our conversation. We fixed our supply chain issues. We reset our merchandising and distribution strategies. We opened a New York design studio. And finally, we developed a new brand platform that we will debut in the second half of 2023. In the end, we’re exiting the pandemic in a much stronger position than when we entered it.

What were some key product highlights? The highlights revolved around three aspects. First, a strategic shift to a “Core of Ecco” approach, focusing on making Ecco the best and most authentic version of Ecco that we could be and not trying to be something else or to chase the market. For us that meant focusing on comfortable, Danish by design, dress/casual leather shoes for the modern family, which is 90 percent of the consumers, 90 percent of the time. Second, we adopted a franchise approach: win with our proven winners and drive color, material and style extensions on our best-selling platforms, which are Soft, Helsinki, Yucatan, Street, Track, and Biom. Third, we delivered real product benefits to the consumer taking advantage of our “farm to foot” vertical supply chain, where we own our footwear factories and leather tanneries. The result is shoes that are better built, and built better.

What were some other successful brand initiatives in 2022? We returned to our roots and refocused our distribution on our great wholesale partners, especially the independent channel that really built this brand with consumers in the U.S. as well as with our best-in-class department store and ecommerce partners. We continue to believe in a premium, multi-channel distribution approach but now see our full-price brand stores more as brand lighthouses and less as national scale distribution. We believe our return to a wholesale focus will give us more access to more modern family consumers and force us to be the best Ecco that we can be given the highly competitive nature of the channel. Wholesale keeps you sharp.

ECCO PLAYED TO its strengths in 2022, doubling down on its core platforms and winning styles. The strategy proved successful for the Danish brand, a repeat winner in the Men’s Comfort category.

In expanding choices within its best-selling platforms, Ecco gave consumers more of what they wanted, and the response was strong. The company also revamped its merchandising and distribution strategies. While its full-price flagships remain a key piece of its multi-channel mix, Ecco’s renewed focus on wholesale is designed to drive growth going forward. The company also opened its first U.S. design studio, a 7,000-square-foot facility in Brooklyn, NY, early last year to facilitate the development of meaningful relationships with wholesalers, vendors, and designers.

Though Ecco posted strong sales overall in 2022, supply chain woes caused sales to fall shy of projections. But by renewing its focus on what it does best and adjusting its distribution strategy, Ecco has set itself up for future growth, according to Tom Berry, president and CEO of Ecco Americas.

Here, the exec recaps a challenging but rewarding year. —B.S.

How was business in 2022? We had strong consumer demand that was undercut by significant supply and delivery issues. Despite these issues, we managed to deliver healthy growth but far lower than it could have been. However, our real result in 2022 was in setting up the brand for accelerated future growth. We put the consumer in the

What was the biggest surprise of the year? The rebound and strength of physical retail, both our wholesale partners and our own stores. While there is the obvious and important ongoing move toward digital commerce, the pandemic distorted this conversation, and in this past year, we saw many consumers return to stores. Last year proved, beyond a doubt, that plenty of consumers still want to shop in-store.

What was the toughest challenge? By far, our supply chain and getting the right products into the market to keep up with the strong demand. Early in 2022, we had factory issues. Then later in the year, we had inbound issues. Some were pandemic related; some were our own issues. The result was that we left a lot of money on the table. We’re thankful for our wholesale partners who worked with us to navigate these challenges. And while we are not yet where we want to be, 2023 is already showing dramatic improvements on on-time and in-stock metrics, and we are confident that the changes we made to our supply chain in 2022 will continue to drive further improvements.

How would you grade your team on its performance navigating these challenges? Two answers. The first is incomplete as we have just started our new Ecco journey. I’m proud of what the team has accomplished so far, and I expect us to go a lot further. The second is that I think it’s more appropriate that our retail partners and ultimately our consumers give us a grade. We’ll only be satisfied when they give us an A.

Looking back on 2022, what are you most proud of for Ecco? That we rediscovered ourselves, and that we’re ready to reintroduce Ecco to both the consumers that already know and love us, as well as to the majority of consumers who’ve never even heard of us.

Soft 7 City Sneaker: a winning style in 2022.

Tom Berry, president/CEO, Ecco Americas

MEN’S COMFORT: ECCO

PROFILES IN EXCELLENCE

WESTERN: TWISTED X GLOBAL BRANDS

Rodeo Stars

Twisted X Global Brands reemphasized its western roots to much success in 2022.

IN 2005, TWISTED X launched as a maker of western boots. From there, the Texas-based company has evolved into Twisted X Global Brands (includes Black Star and Wrangler Footwear), successfully expanding into the casual, outdoor, and work categories—always with a western accent, even if only a slight twang at times. In 2022, however, the company dialed up its western voice with an expanded offering of Tech X by Twisted X along with revamped collections by Black Star and its Wrangler Footwear license.

Tech X features Twisted X’s patented comfort midsole technology, CellStretch, which delivers athletic-like comfort in classic cowboy boot silhouettes. Meanwhile, Black Star targets urbane women seeking stylish

What were some key product highlights for the year? PR: The release of our second and third generations of Tech X featuring CellStretch technology. The first phase was a rubber outsole attached to a midsole, the second is a traditional profile with rubber outsole and the third is a traditional profile with a leather outsole. The response has been wonderful. We’ve heard that these are the most comfortable western boots you’ll ever wear. A key audience for us is made up of authentic cowboys and cowgirls who work hard and need a boot that can keep up with them. This collection has a classic look and all the features needed to accomplish everything a western boot is supposed to—with tremendous comfort. The unique manufacturing technique has never been done in the footwear industry.

CS: The introduction of Tech X was super-exciting for the industry because, for the first time, a western boot with a leather sole was able to have built-in comfort right out of the box. This also marked the first time in about 25 years that the traditional western boot was enhanced.

And Black Star and Wrangler? PR: Following our acquisition in 2020, the pandemic kind of forced us to take a deep dive on the Black Star brand. It has enabled us to come out with a much more focused collection, which is made in Mexico. We felt strongly about growing this segment of business because we know Twisted X has the comfort technology to take a fashion boot product to the next level. It has translated into strong growth in 2022.

flair—like Yellowstone character Beth Dutton would sport. Speaking of the hit TV series, actor Jefferson White, aka Jimmy Hurdstrom, signed on as a spokesperson for Tech X. Last but not least, the expanded Wrangler collection is aimed at the masses—just like the legendary lifestyle brand already serves.

Here, Twisted X Global Brands CEO Prasad Reddy and Senior Director of Sales Clayton Smith discuss the strategy behind its bigger, broader, and better western business approach in 2022. —B.S.

How was business in 2022 overall? PR: Twisted X had another record year, which was on the heels of a huge year in 2021. It was very pleasing to see an increased sales gain continue. In early 2020, when the pandemic hit, we made the decision to increase inventories because we knew retail would come back strong and retailers would not be prepared with enough product to support their needs after the challenges of the pandemic. We took a calculated chance, which enabled us to be there for our partners during the second half of 2020 and beyond. Our increased inventory continued, and we kept bringing in product specifically for our retailers through 2022. We felt we were finally starting to catch up to the demand in Q2 2022 and are now fully back to the level we want to be at.

CS: Before, Black Star leaned toward fancy and blingy with lots of hardware, inlays and overlays to draw attention. Through our research, however, customers said they desired something a little more subtle. Our recent collections provide an heirloom classic option that’s timeless but still fun and fashion-forward to stand out in the best way. We’ve embraced and leveraged western trends in women’s fashion to deliver style that can cross over into the mainstream.

PR: Wrangler Footwear was another exciting initiative for us in 2022. When someone talks about the epitome of an authentic western brand, Wrangler is it. In fact, it was an honor when the company first approached us to become its footwear licensee. Our Wrangler collection continues to grow, including several sub-brands like ATG (all terrain gear), which addresses the outdoor market, and Riggs, which is work product. This is a great example of how broad and diverse the western influence and customer really is.

What was the toughest challenge faced in 2022, and how did you overcome it? PR: There were two big issues. One was the supply chain. We faced problems with freight charges as well as the transit time of products and materials because of a lack of ships, trucks, and rail space. Additionally, costs have gone up sixfold for freight, so that has been a huge challenge. For the previous seven years, we hadn’t increased wholesale prices in an effort to be a good partner to our retailers. Unfortunately, the record inflation forced us to raise prices last year, but we were told we had the lowest increase in our industry.

Tech X by Twisted X features athletic-like cushioning built into leather outsoles.

Black Star offers next level cowgirl style.

PROFILES IN EXCELLENCE

OUTDOOR: MERRELL

Win-Win

Merrell scaled new heights in innovation while making the outdoors more inclusive.

MERRELL, WINNER OF the Outdoor category for the fourth consecutive year, did not disappoint in 2022. The brand once again introduced an array of high-performance shoes as well as updates of classic styles—all while expanding upon its mission to make the great outdoors more inclusive.

The pandemic brought more people outside, and Merrell has sought to connect the newly expanded community through various initiatives, including a women-centric hiking club and campaigns focused on inclusivity. A highlight, says John Burch, senior vice president of global footwear, is the industry-first Inclusivity in the Outdoors report. Launched in November, the annual report strives to make the outdoors more inclusive and accepting of all communities.

“We’ll continue to address and break down some of the barriers identified in the report,” Burch says. “We’re encouraging others in the outdoor industry to take immediate action to address inequities such as expanding representation in employee resource groups, marketing, funding, improving green spaces, and addressing access issues to under-served communities, to name a few.”

Not to be overshadowed, the Merrell Test Lab, a state-of-the-art product incubator, churned out the MTL MQM and MTL Long Sky 2, two category-disrupting trail running styles that feature quick-dry materials and superior traction. The latter was ranked among the 200 top inventions of the year by Time magazine. It’s just one of Merrell’s many big splashes in 2022. —B.S.

How was business in 2022? We were fortunate to deliver sales gains in 2022. We’ve built a good trajectory both entering and exiting the pandemic, but we remain optimistic that the best days are down the trail. Our 36-month product pipeline has allowed us to strategically update our line, while giving our global marketing and sales teams full transparency. This process has proven to be successful in our continued season-over-season revenue growth targets. The product pipeline is structured for long-term product innovation and franchise maintenance, with seasonal flexibility for any market trend requirements. This combination creates a proactive versus reactive product engine, resulting in meeting overall growth expectations each season.

What were some highlights of the year? Overall, we’re proud of what we accomplished in 2022. That includes innovations built in our new Merrell Test Lab, breathing new life into celebrated styles, making gains in sustainability, and marketing. It kicked off with the More Less campaign, which takes a stand against gimmicks and getting to the root of self-care: getting outside and moving while creating innovative, performance-driven products. This was paired with the Bravada 2 launch and the Merrell Hiking Club expanding into the U.S. The women-centric hiking club provides inspiration and connection to the outdoors through a digital community, while pairing consumers with the second generation of our beloved Bravada hiking sneaker. In addition, the Moab 3 brought our much-anticipated reboot of our iconic Moab hiker. We applied new technology to what consumers loved about the Moab 2, with a more environmentally friendly shoe, even more comfort, stability, and traction.

What were some other successful brand initiatives in 2022? We’re doubling down on our mission of sharing the simple power of being outside with everyone while reinforcing a welcome and equitable outdoor environment for all. The Inclusivity in the Outdoors further solidifies how we’re making the outdoors accessible and welcoming for everyone. We also introduced ReTread, our shoe upcycling program. Customers can send back their used Merrell shoes in any condition, at no cost, and we’ll restore and resell the shoes, while the customer gets $20 off their next purchase. It builds on our commitment to saving 300,000 shoes from landfills by 2025.

What was the biggest outdoor trend of the year? The way consumers are thinking differently about the trail. Namely, what they consider to be hiking continues to evolve. With so many great products to market in the hike category, we need to take into consideration the shift of hiking to becoming a mainstream activity. People are looking for lighter, faster, more athletic footwear that can be styled with great color options. Merrell will continue to evolve to meet that growing shift and demand.

What was the toughest challenge faced in 2022? While we’re not out of the pandemic yet, we have a better understanding of how to navigate its challenges as it relates to supply chain and inflation. Our team has proven to be quick and nimble in finding new ways to combat inventory and interruptions in the supply chain. The team has earned an A.

Looking back on the year, what are you most proud of for Merrell? Our commitment to our mission of sharing the simple power of the outdoors with everyone, no matter who they are, where they come from, who they love, or how they move. We demonstrate this belief in everything we do—from the Inclusivity in the Outdoors report, to the Merrell Hiking Club, and to how we show up online, in stores, and anywhere else we meet today’s consumers.

John Burch, SVP, Global Footwear, Merrell

MTL LongSky 2

The Beat Goes On

MAKE THAT A threepeat. Meeting the diverse footwear needs of various segments of the workforce, Timberland Pro once again earned honors in the Work Boots category for the third straight year.

This division of VF Corp. takes a data-driven approach to making work boots, offering styles that feature the latest performance and comfort technologies designed for specific job needs. The company backed that effort up with a marketing campaign celebrating a range of trade professions and the many diverse and skilled people who work in them. The “Your Calling Is Calling” campaign, which featured real workers along with brief bios on how they got to where they are, generated more than 150 million impressions.

Here, Ryan Murphy, brand director, discusses a year marked by innovative products and partnerships—including one with fellow New England-based stalwart, Sam Adams. —B.S.

How was business in 2022, and how did it compare to 2021? Timberland Pro launched new innovative products, strong partnerships, and operational efficiencies that helped propel the brand to new heights. In a retail climate that saw macro-economic headwinds, we persevered and achieved double-digit growth. Through a data-driven, go-to-market process with skilled tradespeople at the center, our business continued to thrive through the pandemic and beyond.

What were some key product highlights of the year? We rejuvenated the work hiker category with three new families addressing distinct needs. Leading the offering was the Trailwind work boot, featuring the Vibram Industrial Yellow Label outsole for maximum outdoor performance. The Switchback work boot leveraged the Timberland Pro rubber outsole to provide high performance

at a great value. In partnership with SRMax, we also introduced a version of the Switchback for the food processing, restaurant, and hospitality industries utilizing the slip-resistant properties of the MaxTrax outsole. We capped off the spring season with a collaboration with Sam Adams, which celebrated two brands with deep New England roots and a passion for innovation. The collection featured a co-branded wheat Timberland Pro direct-attach work boot along with a T-shirt and a hoodie—all tied together by beer-proof technology to help protect against accidental spills. Lastly, we released the next evolution of our TiTAN work boot, originally launched in 2004 and revolutionized the work boot market by offering out-of-the-box comfort without sacrificing dependability. With a modern design, the new TiTAN EV provided consumers the versatility needed to satisfy the current industrial environments.

In addition to great product, what were some other successful brand initiatives introduced in 2022? Timberland Pro is proud to be the brand that celebrates and inspires the next generation of skilled workers globally. It is important to change the perception of the trades from a last-resort job to a sought-after career. To that effect, we launched our fall campaign, “Your Calling Is Calling,” in August. The campaign followed real workers and documented their unique paths to the trades, including an ex-convict using the trades as a path to a better life, a former beauty pageant contestant looking to inspire women to explore a career in the trades, and many others who sought personal fulfillment. The campaign ran for three months and garnered over 150 million impressions.

What was the biggest surprise of the year? The biggest surprise was our consumers’ acceleration back to purchasing in brick-and-mortar locations post-pandemic. Timberland Pro remains at the forefront of consumer-buying habits and will continue to provide relevant shopping experiences for the everchanging skilled tradespeople.

What was the toughest challenge and how did the brand overcome it? Like most businesses, Timberland Pro faced macro-level headwinds in the global supply chain, specifically as it relates to global transportation of goods. In order to mitigate the challenges, the sales team was diligent in its communication with retail partners. It was necessary to have candid communication and re-set expectations around product availability and business planning. Because of our long-standing relationships with our suppliers, the internal supply team also worked diligently to find alternate and creative solutions to deliver product to our consumers.

Ryan Murphy, brand director, Timberland Pro

Looking back on the year, what are you most proud of for the brand? Timberland Pro is a passionate team working toward a common goal to keep the professional trades person at the center of everything we do. It takes a team of talented, passionate, and bold people working together to serve our hardworking consumers.

Drink it in: the Timberland Pro x Sam Adams collab.

WORK BOOTS:

TIMBERLAND

PRO Timberland Pro continues to innovate while celebrating its hard-working customers.

Ugg returns to the spotlight.

UGG, A DIVISION of Deckers Brands, enjoyed a resurgence in 2022 with its cozy answer to the platform shoe trend. The elevated Classic Ultra Mini boot created a stir worthy of the brand’s heyday in the early ’00s, when it was the boot of choice for A-list celebrities and just about everyone.

Inspired by influencers like models Gigi and Bella Hadid, the Classic Ultra Mini Platform has gone viral, spurring unprecedented demand. The brand also launched novel design collabs last year and reimagined its classic silhouettes with new detailing and regenerative materials.

“Ugg is back—it was huge this fall, and a large part of our success in 2022,” says Lester Wasserman, owner of Tip Top Shoes and West NYC in Manhattan. “Customers are searching for trusted authentic brands that offer value, and Ugg has that covered.”

Here, Anne Spangenberg, president of Ugg, discusses the brand’s biggest hits of the year. —B.S.

How was business in 2022?

We’ve seen strong consumer response through our strategy, which has allowed us to focus on key franchises and strengthen our storytelling. That included the launch of some exciting collaborations with Denim Tears and Shayne Oliver, as well as new offerings from our ongoing Ugg x Telfar partnership. Another best-selling boot, of course, was the Classic Ultra Mini Platform, which actor Keke Palmer fronted in our digital “UGGSEASON” campaign. The new silhouette caused a social media frenzy with consumers recreating their own looks inspired by Bella Hadid. The demand is at an all-time high. It’s difficult keeping this style in stock.

Other highlights? Creating products that are good for people and planet. In October 2022, we launched the Classic Mini Regenerate, our first Land to Market-certified boot style. It’s made with raw materials that are a byproduct of commodities grown at farms that practice regenerative agriculture, which helps restore soil, encourages wildlife diversity, captures carbon in the ground, and preserves the land for future generations.

What were other brand initiatives introduced in 2022? We launched our Feels Like Ugg campaign last fall. This anthemic campaign explores the tactile and emotional experiences that our customers associate with when wearing Ugg. We want to empower them to boldly express themselves through style and fabrics that make them feel good both inside and out. Last spring, we also launched Feel House, a multi-sensory experience dedicated to making self-expression comfortable for all and a real-life manifestation of our Feels Like Ugg campaign. It has evolved to include popups with a Brooklyn, NY, edition in October and outposts in China and Korea. Feel House will be making its return this spring with a festival-ready house in Palm Springs.

The biggest takeaway from 2022? Forty-five years in, we continue to evolve. From what started as post-surf footwear, Ugg is a year-round, global lifestyle brand that impacts the zeitgeist. We continue to find new and interesting ways to be a part of the cultural conversation, whether through thoughtful social responsibility programs, exciting designer collaborations, the introduction of fresh product, and beyond.

STREETWEAR: DR. MARTENS

Height of Fame The Doctor Is In

Dr. Martens stays true to its heritage while keeping its brand top of mind.

A PENCHANT FOR remaining relevant and several recent macro trends have contributed to strong sales for Dr. Martens. Like other heritage brands, the brand has fared well through the pandemic as consumers gravitated toward trusted, durable brands and styles amid unprecedented uncertainty. And as workplaces reopen, dress codes are more relaxed, making Docs’ streetwear styles a versatile choice for the work week and the weekend. What’s more, the ongoing ’90s fashion revival has sparked interest in Dr. Martens, which was a staple of that decade’s grunge movement.

“Fashion is cyclical and what’s old is new again,” says Zak Stambor, senior analyst of retail and ecommerce at Insider Intelligence. “Dr. Martens has found success by staying true to its heritage while breathing new life into the brand so that it feels fresh.”

“Dr. Martens is super-important to our overall success as they help validate Rack Room Shoes as best-in-class when it comes to authentic and trend-right brands,” says Brian Burnett, GMM of the 500-plus store chain. “Docs speaks to emotion and nostalgia, and they’re built to last with comfort, quality, and an undeniable personality that’s all their own.” Burnett adds that the Docs customer continues to evolve and expand. “The customer ranges from teens to young adults with rebellious spirits to more fashion-oriented, where age nor gender defines them,” he says. “They’re certainly young at heart, including parents who are introducing the brand as part of the ‘Mommy and Me’ movement.”

Dr. Martens’ revenue in the U.S. rose 31 percent during April-September versus the prior year. Original styles, including the iconic 1460 boot, 1461 shoe and 2976 boot, accounted for 47 percent of the revenue for the period. Sandals were also strong, with a 43 percent uptick in revenue over the previous year. In addition, the brand capitalized on a platform trend, with a range of styles driving growth across the entire line.

Burnett cites the resurgence of ’90s fashions as reigniting interest in the brand’s heritage lace-up boots like the 1460. He says that moved quickly to Chelsea boots and, more recently, in platform styles. “They’ve done a tremendous job activating more consumers spanning those who shop the runways in Paris to the streets of New York to our family channel customers,” he says. “We’re incredibly fortunate about the brand’s success.”

Speaking of being incredibly fortunate, a student visiting Washington, D.C., made headlines last spring when her Dr. Martens boots might have saved her life in a lightning strike. (Tragically, three other people standing near her died.) The rubber soles just may have been the difference-maker. The anecdote added to the brand’s tough-as-nails mystique.

Another highlight of 2022: collabs, which included with the Metropolitan Museum of Art and Rick Owens. The former featured a collection that paid homage to the “36 Views of Mount Fuji” series by Japanese artist Katsushika Hokusai. The 1460 and 1918 Rick Owens platform styles marked the third collab with the designer. The boots feature tumbled leather, a heavy side zip, elongated tongue, unique lacing patterns, and two-inch quad retro soles. —B.S.

Classic Ultra Mini Platform

Dr. Martens x Rick Owens marks the third collab between the two partners.

PROFILES IN EXCELLENCE

SUSTAINABILITY: TIMBERLAND

Circular Logic

TIMBERLAND LAUNCHED A circularity platform and expanded its regenerative sourcing initiatives in 2022, as it works toward its stated goal of having a net positive impact on nature by 2030. The company’s plan to achieve this lofty goal calls for 100 percent of its products to be designed for circularity and 100 percent of its natural materials to be sourced from regenerative agriculture by the start of the next decade.

Eco-friendly product highlights introduced last year include the Timberloop Trekker. Specifically engineered for circularity, the boot was launched in connection with the new Timberloop take-back program. Consumers are invited to return used products so that they may be refurbished or recycled and kept out of landfills. Timberland accepts used products at its retail stores or picks up the shipping tab, and gives 20 percent off the purchase of a future item in return.

The company also moved further along its regenerative sourcing path by adding cotton and rubber to the materials that it gets from regenerative farms and ranches. Tracy Smith, vice president and general manager of Timberland Americas, discusses these initiatives, as well as other highlights and challenges for the year. —B.S.

How was business in 2022? Timberland is seeing strong momentum with revenue growth back to pre-pandemic levels, which we’re very proud of. Every retailer was impacted by the supply chain effects related to the pandemic, but as we worked to rebuild inventories and consumers returned to market, we’re pleased with the growth we’ve seen as we launched new programs and campaigns.

What were some key sustainability highlights of the year? We’re especially excited about the progress we’ve made in terms of circular design and infrastructure as well as sourcing materials from regenerative farms. In terms of sourcing regeneratively, we’ve expanded outside leather to now include rubber and cotton. At the beginning of 2022, we launched a circularity platform, designed to keep our products out of landfills at the end of their useful life. We’ve seen tremendous consumer response and have plans to expand it to our Asia and the Pacific markets.

What was the biggest surprise of the year? Not seeing more brands enter into the circularity space! While we’ve seen a few brands launch their own recycling programs, our hope is that more brands introduce circularity not only through recycling programs but also by manufacturing products to be easily recycled rather than letting them go to landfills.

Reimagining Retail

WHAT COMPETITORS CAN’T carry they can’t sell. Hence, DSW’s focus on expanding its Owned Brands portfolio in 2022—in addition to reaping better margins. The stable of exclusives (including licensing deals) now includes Vince Camuto, Jessica Simpson, Hush Puppies, Keds, Topo Athletic, Reebok, Le Tigre, 360, Crown Vintage, JLO Jennifer Lopez, Lucky Brand, Kelly & Katie, and Mix No. 6. Sales of the division represented 26.5 percent of total net sales in Q3 of 2022 compared to 21.5 percent for the same period last year.

CEO Roger Rawlins described, in a recent press release, the effort as “meaningful progress” in what is a long-term strategy with the goal to double those sales by 2026. “The strategic shifts we have made in our business over the past several years are driving a sustainably higher gross margin rate than 2019 as we have a more targeted focus on customer acquisition, optimizing our assortment, and growing the brands we own and control,” he states.

Despite ongoing supply chain disruptions and economic headwinds, DSW delivered solid results the first three quarters of 2022. Highlights included comp sales up 3 percent in Q3 and 6.2 percent in Q2, net sales of Owned Brands up 40.4 percent in Q2, and Q1 overall net sales spiking 80 percent and fueled, in part, by the relaunch of the Vince Camuto brand. “While we are seeing many of the same pressures across the consumer landscape that most retailers are seeing, our flexible business model continues to support our efforts to navigate a dynamic macro environment,” Rawlins says. “We are focused on meeting our customers’ footwear needs while we balance inventory and expenses in order to continue growing market share in this volatile environment.”

Another highlight of 2022 was the launch of DSW’s Warehouse Reimagined store prototype, which debuted in May near Houston, TX. Designed to put customers, brands, and speed at the forefront, the format features an updated warehouse-inspired design to optimize capacity to bring the Owned Brands to life as well as showcase national brands with shop-in-shops. Features include product displays, head-to-toe lifestyle imagery, oversized graphics, and modular store walls to adapt to planned promotions. In addition, a dedicated kids’ section presents products at their eye level and includes interactive games and the ability for kids to size themselves and select their styles. Rounding out the design are easier-to-find selections and merchandising based on customers’ shopping habits. Warehouse Reimagined also continues to advance DSW’s philanthropic partnership with Soles4Souls, serving as a collection point for footwear donations to then be shipped to entrepreneurs in developing countries while keeping those products out of landfills.

“This new store format is an immersive experience—by the customer, for the customer—and brings to bear our proven capability to retail brands the way customers want,” Rawlins stated, adding it’s an exciting 360-degree consumer experience. “This new format also features expanded and upgraded services and order pick-up areas to make the shopping experience more convenient. Optimization of space helps us ensure our top items are always in stock, building on our hard-earned customer loyalty.”

During DSW’s Investor Day last spring, Rawlins announced the company had taken control of its destiny, having transformed into a brand builder, marrying its world-class design and sourcing capabilities to its industry-leading DTC infrastructure. “We know our customers like our best friends, and we utilize the data, feedback, and insights gleaned from our nearly 30 million loyalty members to efficiently design top-quality product suited specifically for them and engaging with them in innovative ways across any and all mediums they desire,” he says. —G.D.

FAMILY CHANNEL: DSW

Timberland takes important strides toward its goal of a net positive impact on nature by 2030.

With a focus on Owned Brands and the debut of a new store format, DSW is paving a way forward for growth.

Timberland’s diagram for sustainable manufacturing.

Waterproof Chelsea boots by Ariat

Propét suede oxfords with rubber soles. Opposite, clockwise from top: mixed material wingtip with rubber sole by L’Artiste; burnished leather cap toe by Moma; Rieker dress hybrid slip-on with bungee lacing

NeroGiardini suede desert boot.

Opposite page: “Business Boots” by Naot

Clockwise from top left: Ecco suede Chelsea boot; polished leather monk strap by Ace Marks; rugged slip-on by Western Chief Opposite page: Samuel Hubbard wingtips with lightweight rubber soles.

Tall Chelsea boots with burnished leather toe caps by Steve Madden Opposite page: Wolverine Chelsea boots with slip-resistant soles.

Fashion editor: Kathleen O’Reilly; model: Noah Hart/One Mgmt.; hair: Vera Koumbiadis; photo assistant: Rebecca Steighner; PA/styling assistant: Eileen Viglietta. Shot on location at The River Studio in Patchogue, NY.

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Alegria

Aerosoles

Western Chief

Lamo

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Functional or decorative, buckles add an indoor-outdoor versatility to slippers.

Acorn

Haflinger

Flexus

LAST SHOT Dirty Deeds

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Staheekum

Featuring Aetrex orthotic support and memory foam cushioning for superior comfort