ISSUE 1207 FEBRUARY 13, 2012
NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET
®Registered and ™Trademark of Spenco Medical Corporation. ©2005, 2006, 2012 SMC. All Rights Reserved
Men’s Siesta Cold Snap Charcoal Felt/Buffalo Plaid
Women’s Siesta Cold Snap Camel Felt/Houndstooth
Only Spenco® TOTALSUPPORT™ Footwear has the Full-Contact Comfort™ Footbed. Based on the shape of our best-selling TOTALSUPPORT™ Insole, it’s the perfect combination of support and comfort from heel-to-toe. Visit spenco.com and see for yourself how TOTALSUPPORT™ Footwear improves alignment, helps reduce over-pronation and offers relief to those with high arches.
Visit us at FN PLATFORM, Booth #62135 February 13-15 in Las Vegas!
ISSUE 1207 FEBRUARY 13, 2012
Group Publisher email@example.com 303.997.7302
NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET
Editor In Chief James Hartford (704.987.3450 x104) firstname.lastname@example.org Managing Editor Thomas J. Ryan (917.375.4699) email@example.com Editor-at-Large Mackenzie Lobby
Creative Director Teresa Hartford Graphic Designer Camila Amortegui Advertising Sales Account Manager Casey Vandenover (303.997.7302) firstname.lastname@example.org Katie O’Donohue (704.987.3450 x110) email@example.com Circulation & Subscriptions firstname.lastname@example.org Technology Chief Information Officer, Mark Fine VP Research & Development, Gerry Axelrod Manager Database Operations, Cathy Badalamenti
Brooks took the best of past Ghost designs, built in new innovations and then merged it all with striking colors and patterns in the Ghost 5. This shoe hits the sweet spot for a wide range of neutral runners with a Caterpillar Crash Pad and anatomical Brooks DNA. MSRP $110
SportsOneSource Publications SGB TEAM Business SGB Weekly SGB Performance Team Business Monthly The B.O.S.S. Report Sports Executive Weekly SGB Update Footwear Business Update Outdoor Business Update Sportsman’s Business Update Team Business Update
SportsOneSource Research SportScanInfo OIA VantagePoint SOS Research
NEWS 6 8 9 10
12 16 18
ADIDAS Launches Adizero Rush MIZUNO RUNNING Seeing Growth ASICS AMERICAS Region Rebounds in Q3 BROOKS Renews Partnership with Rock 'n' Roll Marathon NEW BALANCE to Expand Brighton Headquarters SAUCONY Bidding Heats Up VIBRAM FIVEFINGERS Revamps Education Portal BROOKS' First Asian Subsidiary Launches SKECHERS' GOrun Super Bowl Commercial, Places Third In The USA Today Ad Meter
The Brand To "Love" BROOKS Continues Gaining Momentum THE LONG RUN Brands debuted their latest and greatest at the 2012 Outdoor Retailer Winter Show in Salt Lake City MINIMALIST RUNNING HEADS TO WINTER
I AM ... PERFORMANCE
2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203 t. 704-987-3450 • f. 704-987-3455 www.SportsOneSource.com
22 MIKAL PEVETO Director of Running Adidas America
Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB PERFORMANCEare not necessarily those of the editors or publishers. SGB PERFORMANCE is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB PERFORMANCE may not be reproduced in whole or in part without the express permission of the publisher. SGB PERFORMANCE is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB PERFORMANCE , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450
FEB 13, 2012 | SGBWeekly.com
will include digital activation and fans will be able to continue the conversation through facebook.com/adidasrunning. Combining a super light shoe with maximum cushioning and support, the adizero Rush features adiPrene+ midsole technology for resilient cushioning in the forefoot to ensure a responsive ride. The shoe’s SprintWeb provides lightweight support while the unique nylon mesh construction is breathable and keeps the foot locked in place for stability and speed. The SprintFrame helps return energy to each stride and the shoe’s Lightstrike EVA reduces midsole weight by 15 percent.
Adidas unveiled the new adizero Rush, one of the lightest every day running shoes on the market at 7.5 ounces. To support the launch of the adizero Rush, Adidas debuted a new 30-second spot that celebrates high school athletics and the energy of competition with football players, cheerleaders, coaches and the marching band all rushing to victory in the adizero Rush. Filmed in Southern California and produced by 180 Los Angeles, the spot debuted on YouTube at http://www. youtube.com/watch?v=N2mofxkKVvM and made its TV premiere on January 22. The marketing campaign also
ADIDAS LAUNCHES ADIZERO RUSH TAKE A CLOSER LOOK
Just click on the video icon to view the Adidas adizero Rush commercial
Each pair of adizero Rush shoes comes with a second lace for an unexpected pop of color, while the shoe’s weight is clearly displayed along the trim. “At Adidas, our goal is simple," said Mikal Peveto, director of running for Adidas America. "We design and engineer lightweight shoes to make athletes of all levels of sports faster so they can perform better on the track, the field and the court. We know seconds make the difference between first and second place or a personal best effort.”
MIZUNO RUNNING SEEING GROWTH
Mizuno athlete Antonio Vega and his Mizuno shoes
6 SGBWeekly.com | FEB 13, 2012
Mizuno Corp. notched a profit of ¥100 million ($1.3 mm) in its third quarter-ended December 31, rebounding from a loss of ¥100 million a year ago. Revenues improved 5.4 percent to ¥36.9 million ($479.7 mm). The figures were attained by subtracting six-month figures from nine-month figures. In the nine month period revenues rose 3.2 percent to ¥114.9 billion ($1.5 bn). In currency-neutral terms, revenues rose 5.2 percent. Mizuno noted that sales in all regions increased on a local currency basis with the Americas region seeing doubledigit growth. Running shoe sales were "still strong" in each region and golf sales were recovering in Japan. The company said sales in the Americas in the nine months reached ¥16.0 billion ($206 mm), up 11.6 percent on a currency-neutral basis. Growth was driven by running footwear and a recovery in golf. Currency-neutral sales rose 2.5 percent to ¥7.3 billion ($94 mm) in Europe, 19.9 percent to the same ¥7.3 billion ($94 mm) in Asia and 3.1 percent to ¥84.2 billion ($1.1 bn) in Japan. On a category basis, revenues of Sporting Footwear (running shoes) rose 6.0 percent in the nine months to ¥24.2 billion ($312 mm). Baseball goods, including cleats, slipped 0.3 percent to ¥27.0 billion ($348 mm) while Sporting Apparel rose 6.7 percent to ¥22.0 billion ($284 mm). Sales of Golf goods, including soft goods, slipped 3.7 percent to ¥17.8 billion ($230 mm).
292 miles mountain biking 14 trips to the farmers market 28 kids’ soccer games 1 run in with stranger’s latté 3 school field trips 2 unexpected downpours 6 concerts in the park 1 stormy ferry ride 5 sunrise hikes Teflon fabric protector means ®
less washing, less dry cleaning, lower wash and dry temperatures, less energy, less wear and tear, and that can mean less impact on the planet. For more information, visit www.teflon.com/sporting.
Copyright ©2012 DuPont. All rights reserved. The DuPont Oval Logo, DuPont , The miracles of science , and Teflon are trademarks or registered trademarks of E.I. du Pont de Nemours and Company or its affiliates. ™
ASICS AMERICAS REGION REBOUNDS IN Q3 Asics Corp reported operating earnings slid 12.8 percent to ¥5.76 billion ($75 mm) in its fiscal third quarter ended December 31, from ¥6.6 billion ($80 mm) in the comparable prior-year period. Earnings improved in the Americas region, bouncing back from the declining trend seen in the fiscal first half but those gains were offset by lower profits in Europe and declines in its home region in Japan. Net earnings in the quarter improved 5.7 percent, to ¥3.66 billion ($47.3 mm) from ¥3.46 billion in the prior-year period. Fiscal third quarter revenues grew 4.8 percent to ¥62.4 billion ($807 mm) from ¥59.5 billion in the prior-year quarter. Gross margins were down 20 basis points to 44.0 percent of sales for the fiscal quarter. SG&A increased 140 basis points to 34.8 percent of sales for the period. In the Americas region, sales in the quarter increased 7.1 percent to ¥15.6 billion ($201 mm) from ¥14.5 billion ($176 mm) in the prior-year period. In U.S. dollar terms, both sales and operating earnings increased 14.4 percent in the Americas for the quarter. Operating earnings also improved 7.1 percent to ¥1.55 billion ($20 mm) from ¥1.44 billion ($18 mm). In Japan, sales inched up 2.2 percent to ¥20.5 billion ($264 mm) from ¥19.9 billion while operating earnings slid to ¥57.0 million ($738,000) from ¥330 million. In Europe, sales grew 7.3 percent to ¥18.3 billion ($237 mm) in fiscal Q3
from ¥17.1 billion in the prior-year period but operating income in the region was down 19.5 percent to ¥3.29 million ($42.4 mm) from ¥4.1 million. In the Oceania region, sales gave back 18.0 percent to ¥2.05 billion (26.4 mm) in fiscal Q3 from ¥2.50 billion in the prior-year period. East Asia's revenue rose 6.3 percent to ¥3.04 billion ($39 mm) from ¥2.86 billion. In the Other Business segment, which consists of the Haglofs Holding AB outdoor business acquired the prior year, sales improved to ¥2.88 million ($37 mm) against ¥2.86 billion in the prioryear period. Asics now expects full year revenues to grow to ¥250 billion, up 6.2 percent. Operating income is expected to decline 5.0 percent to ¥20.5 billion and net income is projected to reach ¥11 billion, off 0.4 percent. In its statement, Asics said that during the nine months, "the pace of recovery weakened in the global economy due to the sovereign debt problem in Europe, high unemployment rates in North America and other factors. In the Japanese economy, although the economy staged a moderately paced recovery from the slowdown that the Great Eastern Japan Earthquake induced, the economic outlook remained uncertain due to various concerns such as exchange-rate and stock-market-price fluctuations, the effects of deflation and the deteriorating employment situation. In the sporting goods industry, interest in sport remained at a high level owing to rising health consciousness on the back of a running boom and other factors, but business conditions remained challenging."
BROOKS RENEWS PARTNERSHIP WITH ROCK 'N' ROLL MARATHON Brooks Sports, Inc. and Competitor Group, Inc., (CGI) announced a multiyear, multi-category sponsorship renewal. In addition to their exclusive rights as the official footwear and apparel sponsor of the Rock 'n' Roll Marathon Series, Brooks' sister brand, Moving Comfort, remains as the official sports bra for the series. "We are proud to extend our successful partnership with Brooks, who owns the No. 1 market share position in specialty running," said Scott Dickey, President of CGI. "We see this renewal as a great sign of the confidence that Brooks has not only in the Rock 'n' Roll Marathon Series, but in the entire Competitor Group platform and the continued growth we see in running. We look forward to working together with Brooks to extend the reach of the Rock 'n' Roll Marathon Series and help increase exposure of the Brooks brand." Over 450,000 professional and amateur athletes from all over the world will participate in a Rock 'n' Roll Marathon Series event in 2012, which has expanded to twenty-four markets in North America. 8 SGBWeekly.com | FEB 13, 2012
SAUCONY BIDDING HEATS UP
Collective Brands Inc., the parent of Saucony, is reducing the potential pool of suitors for all or part of its business as it moves to the second round of bidding, people familiar with the matter told Bloomberg News. The company, which also owns Payless ShoeSource, Saucony, Sperry Top-Sider, Keds and Stride Rite, began notifying the twenty bidders from the first round whether they would move on to the next. Last August, Collective Brands hired investment bank Perella Weinberg to explore a possible sale. The second round will comprise about 10 parties that will gain access to more data to support a formal bid, sources told Bloomberg. Collective Brands remains open to selling itself as a whole or piecemeal. Initial offers were said to come in from buyout firms TPG Capital and Leonard Green & Partners, as well as from competitors including Wolverine World Wide, Columbia Sportswear and Deckers Outdoor.
NEW BALANCE TO EXPAND BRIGHTON HEADQUARTERS
New Balance is proposing to expand its campus in Brighton, MA with a new headquarters building, a track and field center, shops, restaurants, and a hockey rink. According to the Boston Globe, the development would take place on fourteen acres the company is calling Boston’s new "health and wellness district" along Guest Street. New Balance's real estate arm, New Brighton Landing, LLC, detailed the project in plans filed with the city. In addition to its own headquarters, the company wrote in the filing that it wants to build up to three new office buildings to be occupied by other "like-minded" businesses, along with a boutique hotel, shops and restaurants, and a public park. The project "seeks to create an anchor for renewed activity along the Guest Street corridor, focused on job creation, health and wellness, sporting activities, public open space, and vast improvements to public infrastructure," according to the filing. The company is also seeking construction of a new commuter rail station on Everett Street, although that part of the project is still under discussion with the Massachusetts Department of Transportation. The company earlier this year submitted a letter of intent to the Boston Redevelopment Authority to develop the site of its Brighton headquarters and an adjacent site it acquired in March last year for $26.5 million. New Balance is expected to spend the next several months meeting with community groups and city officials to craft a more detailed vision for the site. It will need several permits from the Boston Redevelopment Authority and other city agencies before it can start construction.
VIBRAM FIVEFINGERS REVAMPS EDUCATION PORTAL
Vibram FiveFingers announced the launch of a new educational fitness resource portal on their website containing educational tools and information for consumers looking to transition to barefoot fitness. The portal also has information on how to start a new exercise regime, or enhance a pre-existing one. Following a proprietary study to better understand consumer motivation behind implementing minimalist fitness practices, several resources were developed, including a series of short fitness videos featuring Vibram's lead fitness advisor, Stacey Lei Krauss. "Our strong commitment to research and innovation, along with passionate consumer feedback, inspired our new educational section on the Vibram website," said Tony Post, CEO of Vibram. "With the vital health benefits in utilizing a minimalist fitness routine, we felt a resource portal with informational articles, tools and videos for consumers is a key way to inform those already started, and for new users looking to transition." The new tools, which are currently available, are the first of several in a series of new content with topics and insights in the revolutionary barefoot fitness category. For more information on Vibram FiveFingers and its new educational section of the website, please visit vibramfivefingers.com or, vibramfivefingers.com/education . FEB 13, 2012 | SGBWeekly.com
BROOKS' FIRST ASIAN SUBSIDIARY LAUNCHES Brooks Sports, Inc. opened its first Asian subsidiary, Brooks Sports K.K., in the world’s second largest running market, Japan. Through a partnership with Custom Produce Inc. (CPI), Brooks K.K. officially launched to Japanese retailers and media on January 24, in Tokyo at a retail selling exhibition known as a "Tenjikai." The event drew incredibly positive retail response, leading Brooks to double its 2012 forecast for the Japanese market. "To reach our goal to be the leader in performance running by 2020, we need partners who share our passion for running and an appreciation for our 'Run Happy' spirit," said Jim Weber, president and CEO of Brooks Sports. "CPI is that partner for us
in Japan. They share our values and an understanding for what it takes to build a premium brand. We look forward to working closely with them to introduce Brooks to Japan's 28 million runners." Added Sadao Goukon, president of CPI, “We believe in the quality and innovation of Brooks' products and that CPI will be able to grow Brooks into a major running brand in Japan. We look forward to taking the next steps to reach that goal." Brooks K. K. is the second international subsidiary for Brooks. It opened its first subsidiary in Germany nearly a decade ago with a focus on Europe, the Middle East and Africa.
Skechers' GOrun Super Bowl commercial, featuring a French bulldog Boston Terrier in sneakers wins a surprising dog race, placed third in the USA Today Ad Meter. Billionaire entrepreneur and Dallas Mavericks owner Mark Cuban also starred in the ad that featured rapper Tone Loc's hit single, "Wild Thing." Mr. Quiggly, the French bulldog star of the ad, also helped promote his commercial with an appearance on Good Morning America on the Friday before the superbowl. During the segment, Lara Spencer said "You can forget about David Beckham and Matthew Broderick for a moment. The MVP, the most valuable pitchman, just might be a pup named Mr. Quiggly." Mr. Quiggly and Skechers president and CEO Michael Greenberg on the Good Morning America set.
10 SGBWeekly.com | FEB 13, 2012
WHERE STRATEGIC DECISIONS BEGIN
A Service of The SportsOneSource Group
THE BRAND TO "LOVE" BROOKS CONTINUES GAINING MOMENTUM By Thomas J. Ryan
ith ongoing strength in its traditional lines as well as a strong October launch of its first minimalist collection, PureProject, Brooks Sports, Inc. reported a 34 percent hike in revenues in 2011. Sales broke $300 million for the first time for the brand on a global basis, putting the company ahead of a goal set last year to become a billion dollar brand by 2020. And with backlogs across all categories ahead 40 percent, President and CEO Jim Weber believes the business has clearly gained momentum over the last two years. "We were selling shoes a lot over the last 10 years but now we have built a brand," Weber said at a meeting with journalists at the Outdoor Retailer Winter Show in Salt Lake City. "Runners speak with their dollars. They speak with their money in terms of what they're going to put on their foot and their body as they go out to do an activity that they love. And I believe right now we're the hottest brand in running. 12 SGBWeekly.com | FEB 13, 2012
B ut Weber was most proud of the fact that Brooks last February became the leading footwear brand by market share in the SRA (specialty running account) channel, edging past Asics, according to various reports. He noted that this achievement was the first KPI (key performance indicator) established when he took over the brand and re-focused it solely on a run approach in 2001. "When you look at the specialty run space, we're going into the fourth decade and only three brands have led that channel in footwear," said Weber. "Nike led in the 80s. Asics led going into the 90s and up until February and now we're in that spot. It's so competitive but we're going to work every day to earn that spot going forward because they are the critical influencers to runners and the running community." Outlining the drivers to the brand’s success, Weber first cited the goal set in 2001 to become a "thought leader" in product in
the running space with a first focus always on "science and performance." The brand has formed alliances with two leading biomechanical professors, Dr. Joseph Hamel of the University of Massachusetts and Dr. Gert-Peter Brüggemann at the German Sport University in Cologne, Germany, to continue to push the envelope in bringing leading technologies to market. Brooks also believes it has benefited from its emphasis on inventory capacity. While recognizing early on that local running shops don't have the warehouse space to handle reserves. Brooks' commitment to holding ample replenishment stock has also benefited its larger partners such as Dick's Sporting Goods and Nordstrom. Stated Weber, "Service is critical but it's probably the hardest thing we do because it takes the whole team effort." Finally, Brooks has become increasingly more relevant to runners, largely due to its extensive grassroots marketing efforts. Said Weber, "We spend every penny talking to runners."
THE STATS... • Brooks’ total U.S. footwear sales rose 39 percent in
• • •
"When you look at the specialty run space, we're going into the fourth decade and only three brands have led that channel in footwear," said Weber. "Nike led in the 80s. Asics led going into the 90s and up until February and now we're in that spot. It's so competitive but we're going to work every day to earn that spot going forward because they are the critical influencers to runners and the running community." - Jim Weber, President and CEO Jim Weber
COMMITMENT TO INNOVATION From a product perspective, some key breakthrough developments over the last two years were charged by a notable shift to listen more to consumers and apply those insights to design, said Carson Caprara, Brooks' footwear product line manager. Such conversations have led to smaller enhancements such as the Tongue Tied feature that prevents a shoe's tongue from moving around. But qualitative research with runners also inspired PureProject and its "float" versus "feel" methodology to illustrate its first push into minimalism. Instead of shod versus unshod and debates over correct heel-to-toe drop, runners told Brooks they were looking for different running experiences.
2011, bolstered in part by three styles experiencing triple-digit growth: Ghost (up 134 percent), Trance (up 114 percent) and Ravenna (up 100 percent) Brooks top seller, the Adrenaline GTS, grew 23 percent last year in the U.S. and retained its position as the No. 1 shoe at the SRA channel in 2011 PureProject's sales vaulted Brooks to the top spot in October and November 2011 with 33 percent market share in the minimalist running shoe category at SRA. That was fueled by PureCadence, which became the best-selling minimalist shoe at SRA for the same twomonth period Apparel grew over 40 percent in 2011 Domestic revenue jumped 37 percent in 2011 while international grew more than 26 percent Brooks’ “at-once” fill-in orders drew a 23 percent domestic increase over 2010 in the SRA channel
"Running is a bigger part of their life than it's ever been and they're excited about running and they want to experience it in different ways," said Caprara. "And that's the exciting part of the whole trend and one we wanted to capitalize on and be part of because it's real with them." For 2012, PureProject will potentially get lighter but will still retain adequate cushioning. Caprara said that while cushioning has "almost been abandoned a little bit, we actually believe all runners at some level want some cushion in their product." PureProject is also enabling Brooks to bring technologies faster to market than they traditionally could through its traditional categories. At the same time, Brooks will continue to invest in development of its traditional models. While its conversations with runners clearly found that some wanted to connect with the activity "in a different way" and interact more with the ground, about 80 percent still wanted the core shoe. Said Caprara, "They've got that tried-andtrue Adrenaline and it does what they want it to. They don’t want to change." On the traditional models, the caterpillar crash pad is being extended in 2012 across the sole of the shoe to encourage an even more consistent landing pattern. Said Caprara, "Your body has less pre-activity and can run more fluidly." Its DNA technology that adapts to every step regardless of body size continues to find greater relevancy with new learnings around running gait analysis and will FEB 13, 2012 | SGBWeekly.com
continue to be a cornerstone of design. Its Flextra technology, which offers optimal stiffness during the propulsion phase, will also be more greatly featured in design. On the upper, customization will be a focus for both the core and PureProject collections. On the apparel side, Michelle Ave, who recently rejoined the company as director of apparel merchandising, said the brand will be adding design internally in apparel for the first time while still retaining its external design partners. Ave said having an internal team will help Brooks bring "signature" apparel product to the marketplace and supports long-range planning. She also noted, "Having creative energy in-house is just going to be phenomenal." A strong focus will also be placed on materials and textiles to solve runners' solutions for weather and other conditions. An apparel version of the PureProject line is also in the works.
BECOMING A “LOVE” BRAND L onger term, Weber said Brooks has the opportunity to become a "love brand." Said Weber, "There are products that people fall in love with. There are people that love their shoes or their jacket. There are people that absolutely won't go without their favorite pair of socks." He noted that the outdoor industry has a few such brands, citing Patagonia as an example. But he doesn't believe one exists in running. What gives Weber confidence that Brooks can become a love brand is the brand's commitment to the running lifestyle under its "Run Happy" mantra. He said running is "all we do" and Brooks' goal is to remain a "niche brand" by focusing solely on running even as it reaches $1 billion. He said people are being drawn to running and the running lifestyle for a variety of reasons. "It's competing. It's mental therapy. It's health and wellness. It's staying fit. It's life giving. It fills the spirit,” explained Weber. “So for a lot of people, they'll never give it up. So I think we're in a great position in this marketplace and it's deliberate. We've been executing against this strategy for 10 years." According to Weber, love brands come from consumers having an "incredible amount of trust" that the product will perform as expected. But it also comes by connecting with a lifestyle. As part of that push for Brooks, its new headquarters, scheduled to open in late 2013, will be just steps from some of the best running trails and parks in Seattle. Its field marketing team is approaching 30 to reach sales associates and increased investments in event marketing are being planned to reach more runners. Added Weber, "We're doing things differently than every other brand and company in the space and it's resonating with runners." Weber also reconfirmed that Brooks expects to become a billion dollar brand while keeping distribution in existing channels: SRA, sporting goods, mall athletic specialty such as Finish Line and its Seattle neighbor, Nordstrom. He noted that unlike most other larger running brands, Brooks has made a decision not to sell to the family channel. Said Weber, "There's clearly some runners that shop that channel as they're buying shoes for their family and the like. But we still have so much opportunity to grow in existing channels that we're 14 SGBWeekly.com | FEB 13, 2012
not looking for an opportunity for new distribution." He noted that Brooks over the last two months had shrunk its Internet distribution after finding too many websites selling the brand were causing channel conflict. Noted Weber, "The moment you get more inventory out there than is demanded for your brand, you're going to devalue everything." Further probed on Brooks' potential to reach $1 billion in existing channels, Weber noted that Brooks is significantly underdeveloped internationally. A partnership to create a Japanese subsidiary will be announced this week. In the U.S., Weber noted that Nike controlled a 50 percent share of the running channel in the 80s and Burton now has half of the snowboard channel. Moving Comfort, a brand Weber also oversees under the Berkshire Hathaway umbrella, is approaching 70 percent market share in sports bras. He likewise noted that recent consumer research showed that Brooks' brand awareness is in the 30s while Asics is in the 60s. Finally, Weber believed the SRA channel overall had significant room to grow. Said Weber, "I think corporate investment and institutional investment in that specialty running experience is evidence of that." He also noted that countries such as Germany and Australia have full biomechanical fitting as part of the store experience. Weber said, "It's late to the U.S. so I think that investment is validating the specialty experience." That said, Weber stated while he remained bullish on run specialty, "you have to earn every point of market share you get." To assure its continuing to resonate with runners, Brooks has long compiled statistical counts of shoes at races. Said Weber, "It's been trending up for the last ten years and the moment we see that trend down, shame on us." ■
Specializing in private placements, mergers & acquisitions, financial restructurings and strategic advising/consulting We look forward to working with OIA and all its members to promote outdoor recreation and active lifestyles while creating extraordinary results for our clients. www.pcg-advisors.com One Embarcadero Center Suite 3810 San Francisco, CA 94111 Please contact: Tripp Baird / 415-705-8003
THE LONG RUN Brands debute their latest and greatest at the 2012 Outdoor Retailer Winter Show in Salt Lake City By Mackenzie Lobby
Brooks NightLife Essential Longsleeve 1/2 Zip now in Brite Pink for women and Brite Orange for men. This is lightweight, performance driven, and makes it possible for cars to spot a runner on the road. MSRP $65
16 SGBWeekly.com | FEB 13, 2012
If this season’s Outdoor Retailer Winter Show was any indication, business is booming in the running industry. Whether it is inspired by a truncated winter, or simply the influx of athletes into the sport, brands have upped the ante to meet the growing needs of consumers. In particular, the increase in the number of female runners has inspired a palpable shift in the look and feel of running apparel. Across the board, lifestyle trends have influenced the styles and designs, creating a look that can go to the gym and around town. Moving Comfort has done this well with their Urban Gym collection. A technically driven line, featuring stylistic details that present a whole new look for the category. From tanks to capris to stylish long-sleeved tops, these pieces work for a myriad of fitness and recreational activities beyond running. In addition to being the best looking running apparel to date, brands have also further specialized their lines to meet the needs of different segments of the running market. Understanding runners have varying ambitions, Gore Running has introduced collections for everyone from the “Performance” runner with the Magnitude line to the “Fitness” runner with the Essential line. Joining Gore in the ultra running category, companies like Patagonia, The North Face, and Pearl Izumi are offering collections specifically tailored for the long haul out on the trails. The other growing sub-category in running apparel is reflective gear for nighttime running. For Fall 2012, Saucony will introduce their patented LED light system in their ViziPro line. Similarly, their Kinvara line of apparel features bright colors and designs for purposes of both fashion and function. Brooks has begun to highlight their reflective offerings under the NightLife namesake. This new focus on visibility is an indicator of the brands’ understanding for the unique needs of runners year-round. The wider range of apparel options to be introduced in Fall 2012 reflects the increasingly diverse running population. No longer is running gear one size or feature fits all. Today there is something for everyone, whether you’re running short or long, during the day or night, or in the desert or the tundra. ■
Patagonia Thermal Flyer Shirt is made from a 6.3-ounce, 77% chlorinefree merino wool, blended with 18% polyester and 5% spandex. This blend offers a strong, durable fabric with a soft hand, natural odor control and incredible wicking properties. Minimal seams are merrow stitched for softness, and a shaped cuff folds over to create a mitt for additional hand coverage. MSRP $119
Saucony Xodus 3.0 GTX features a waterproof Gore-Tex membrane laminated and sealed to the shoe's textile upper. The membrane's microporous structure keeps external moisture out but allows moisture from perspiration to escape. 4mm heel-to-toe offset with an aggressive Vibram outsole handles wet terrain. MSRP $130
THE NORTH FACE
The North Face Apex Lite Jacket is â€‹Ideal for cool fall runs on both trails and the road. It is lightweight, wind-and-water resistant with body mapping ventilation and FlashDry technology making it one of the highest quality jackets around. MSRP $130
Moving Comfort Urban Gym Capris are a blended lifestyle and workout piece constructed with performance fibers and fashionable enough to wear around town. MSRP $60
FEB 13, 2012 | SGBWeekly.com
MINIMALIST RUNNING HEADS TO WINTER By Thomas J. Ryan
While balmy weather in much of the country this winter gave little reason for runners to stay inside, running footwear manufacturers nevertheless came out with a vast number of styles to handle the typically harsh weather conditions of the season. At the recent Outdoor Retailer Winter Market show in Salt Lake City, many manufacturers showcased zero-drop and 4mm-drop takes of product designed for cold-weather conditions, from snow and slush. Lower-profile versions were also offered aimed at the trail, including several zero-drop models. A few traditional models also received some updates.
Vibram FiveFingers unveiled its first cold weather and water resistant running style, the Lontra. Said Tony Post, president and CEO of Vibram, "Our customers continue to make FiveFingers an integral part of their daily routine and 18 SGBWeekly.com | FEB 13, 2012
Vibram FiveFingers Lontra features a water repellant, laminated polyester upper with micro fleece liner for warmth and comfort. A snug fitting Neoprene heel cuff and sewn-in fleece footbed offer thermal protection. Also features Vibram TC-1 Dura rubber outsole, a 4mm EVA midsole and reinforced urethane hook and loop closure. MSRP $150
they want to enjoy the benefits year round." Vibram also introduced two warmer versions of the retro-styled Speed, a model designed for casual use. In its fourth season, Merrell Barefoot extended to cool weather running shoes with the low-cut Pulse Glove and Pulse Glove Mid for men, as well as the Tempo Glove and Tempo Glove Mid for women. It also introduced barefoot shoes for training and gym workouts, as well as several casual styles. The models feature an integrated Merrell Aeroblock fabric Gaiter with a zip closure for easy on and easy off; Vibram Ice Trek Rubber Outsole for traction on wet, slushy or snowy ground; and an EZ‐Clean Finish that sheds dirt and resists stains. Merrell also introduced its Mix Master training shoe series built on a more minimal platform (4mm heel-to-toe drop).
Merrell Pulse Glove is a weather-resistant winter runner with Merrell Aeroblock fabric and gaiter with zip closure. Includes Vibram Ice Trek rubber sole for traction, built on the same sole pattern as the Road Glove. Cord-lock lacing system provides a secure fit. MSRP $125
Saucony Xodus 3.0 GTX features a waterproof Gore-Tex® membrane laminated and sealed to the shoe's textile upper. The membrane's microporous structure keeps external moisture out but allows moisture from perspiration to escape. 4mm heel-to-toe offset with an aggressive Vibram outsole handles wet terrain. MSRP $130
New Balance, which also partnered with Vibram on its minimal push, introduced the NB Minimus 1010 trail shoe that provides a minimal fit and feel, much like that of the NB Minimus 10 or ZERO, but with more traditional midsole heights (14mm in the heel and 10mm in the forefoot) and a more supportive upper similar to conventional trail running shoes. It is especially aimed for those looking to gradually transition into lower stack heights.
Saucony also introduced a new RunAnywhere (RAW) Trail Collection through a partnership with Gore-Tex. The waterproof, windproof and breathable protection in both the Xodus 3.0 GTX trail runner and the Adventerra GTX lightweight hiking boot is achieved by laminating a Gore-Tex membrane to the shoe’s h igh-performance textile upper, then sealing it with an innovative solution for durable waterproof protection. The membrane’s microporous structure keeps external moisture out, while still allowing moisture from perspiration to escape, delivering optimal comfort when battling the elements. “Running is the ultimate outdoor sport and we get to design and test our products in some of the harshest New England weather conditions possible,” said Patrick O’Malley, senior vice president of global product for Saucony. “Our goal in partnering with Gore-Tex is to create an innovative solution for trail runners and hikers alike, enhancing their experience no matter how wet and soggy the conditions might be."
The midsole of the New Balance NB Minimus 1010 trail shoe is composed of RevLite lightweight foam used in several other NB Minimus shoes. The outsole features a unique construction of strategically placed pods to maximize performance while minimizing weight. Each pod is filled with Vibram TC-1 Dura, an advanced compound specifically engineered to maintain grip on trails. Features of 4mm drop. MSRP $110
Inov 8 showcased its Trailroc series designed for running on loose,
Saucony introduced its third version of its popular Kinvara model featuring a new innovative upper technology for an exceptional fit and strategically-placed rubber on the outsole for an even better ride. A Kinvara trail version also debuted.
Saucony Kinvara TR transfers Saucony's minimalist advances from road to trail. The upper features FlexFilm technology locking the foot in place through the gait cycle with an ultra-light, flexible midsole. MSRP $100
rugged and eroded trails. Three offsets are available. The Trailroc 235 is a zero drop model. The Trailroc 245 has a one-arrow shock zone for a 4mm heel-to-toe drop, and the Trailroc 255 has a two-arrow shock zone for a 7mm difference between the heel and forefoot. The shoes use three different types of rubber compounds on the outsole to optimize grip and durability. Both the 245 and 255 include a Meta-Shank built-in guard for added protection from rocks and other trail debris.
Inov 8 235 was designed specifically for running on loose, rugged and eroded trails. The shoe is a zero-drop model and part of the Trailroc series. Soft, sticky rubber on the toe and arch improves grip with an endurance rubber spanning from heel to metatarsals for durability. A hard sticky rubber on the medial and lateral forefoot provides improved wear. MSRP $120
FEB 13, 2012 | SGBWeekly.com
Salomon's Snowcross CS combines the fit and performance of a trail running shoe with the traction of its award-winning Spikecross to create the powerful winter racing product equipped to handle sloppy slush, slippery ice and sloggy snow. Includes metal spikes with carbonlite tips for gripping ice yet weighs only 12.7 oz. Salomon says it's "for people who keep running even when the postman stays in.”
GoLite Outdoor Cross Training (OXT) features a Gecko 270 outsole with hundreds of tiny lugs, Dynamic Fit System with one-piece bootie lining and zero-drop heel. A new innovative in the sole, 270 degree of Flex, promotes a natural stride and full responsiveness to the terrain. MSRP $125 (Men); $120 (Women)
Salomon Snowcross CS is a lightweight running shoe "adapted to deep winter training." Offers welded exterior, full interior gaiter, metal spikes with carbonate tips and weighs 12.7 ozs. MSRP $200
ness is in the heel "that’s all trail runner with a lightweight textile exterior and exposed EVA cushioning for greater agility. They work together to give people what they really need in the outdoors.” Altra Footwear was showing off its Best Debut award from Runner’s World in the March 2012 issue. The brand is best known for its Altra's Zero Drop technology and gender-specific lasts. For women, for example, the shoes feature a narrower heal, female specific mid-soles, longer arch and narrower mid-foot, higher instep, female specific cushioning and metatarsal positioning, female specific last, upper fit, shape and specific out-soles. The foot shape itself is designed to maximize shock absorption and powerful toe off, allowing toes to relax and spread out naturally while helping to maintain proper anatomical foot position.
Salomon S-Lab Sense is a low, light and fast top-level race shoe designed to allow natural foot motion and forefoot running. MSRP $200
The Salomon S-Lab Sense is a featherlight trail runner (weighing 6.9 oz. in standard U.S. Size 9) designed in close collaboration with Spanish ultrarunning star Kilian Jornet in his quest to win the 2011 Western States 100 ultra trail race. Along with a 4mm offset from heel-to-toe, the S-Lab Sense features include the Profeel Film lightweight layer under the forefoot to deliver protection without sacrificing flexibility; EndoFit internal fit sleeves for seamless comfort and intuitive feedback; and Dynamic Traction to deliver grip. GoLite Footwear introduced the Outdoor Cross Training, or OXT, that combines trail and light hike technologies to enable the outdoor enthusiast to hike, rock scramble, and trail run. The sole features GoLite’s newest innovation, GoLite calls 270° of Flex, that promotes a natural stride and full responsiveness to the terrain. GoLite Footwear’s President Scott Briggs said that like a pure light hiker, the forefoot of the shoe acts with a wide toe box, protective rand, lace-to-toe closure a nd lugs curving up the sides. The unique20 SGBWeekly.com | FEB 13, 2012
Modeled after The Instinct platform, the Altra Provision adds a firmer midsole and a removable varus stability wedge to assist men with fallen arches, excessive overpronation and knock knees. Built for moderate and high overpronation, the Zero Drop platform, foot-shaped design and stability wedge combine to provide a high level of stability without the excessive bulk and weight of traditional stability shoes. Simply remove the stability wedge to convert this shoe to work for neutral and mild overpronation. MSRP $105
At Brooks, the Glycerin 10 neutral model was updated with a forefoot design that enhances flexibility. The segmented Caterpillar Crash Pad customizes the individual’s lay down with just the right amount of cushion and stabilization, giving the runner a smooth heelto-toe transition. The Ghost neutral shoe also underwent a makeover.
Ecco partnered with Gore-Tex to come out with its first trail shoe under its Biom range with a shoe that has an anatomically fitted last and direct injection PU technology that enhances forefoot flexibility to encourage a natural strike.
Brooks Glycerin 10 has a forefoot design that enhances flexibility for an effortless toe-off. An updated saddle hugs the runner's foot while a full-length Brooks DNA midsole cushions each stride. MSRP $140
K-Swiss introduced its Vertical Tubes Technology in its Cali-Mari shoe. Building upon the success of Tubes Technology, which uses horizontal EVA-injected cylinders, the Vertical Tubes are constructed to work as a suspension system mirroring the movement of every foot strike. Featuring a zero-heel lift, 14mm drop from heel-to-forefoot, the Cali-Mari sock liner can be removed to discover sensory nubs in the foot bed that stimulates the bottom of the foot.
K-Swiss Cali-Mari debuts the brand's Vertical Tubes Technology - an outsole design that uses individual vertical pods to provide maximum shock absorbency. MSRP $80
Ecco Biom Trail GTX features a Gore-Tex lining for 100% waterproof construction. Also features a rugged rubber outsole with specifically designed traction, a direct injected PU midsole and biomechanics flexible construction for natural running motion. MSRP $255
Fila, in its first appearance at the Outdoor Retailer show, showcased a range of trail runners, including camo versions, as part of its Skele-toes collection.
The tooling on the Fila Blowout trail running shoe, part of the Skele-Toes collection, is a solid rubber/EVA construction configured to provide extra traction and protection on the off-road but is suitable for on-road and everyday use. Mesh upper and lightweight molded tip for structure and protection at the toe area. MSRP $70
Patagonia showcased the Fore Runner RS shoe that caters to a natural stride and offers protection from the elements and terrain with a breathable, wind-resistant upper. For added protection, a reinforced rand and toe bumper, a forefoot protection plate, and a multi-density sticky rubber outsole provide stability and traction in wet and snowy conditions.
Vivobarefoot, the U.K. minimalist brand dedicated to zerodrops, introduced several trail and road updates.
Patagonia Fore Runner RS adds a wind-resistant, breathable ripstop microfiber option to the minimal 4mm-drop Fore Runner. The shoe caters to a natural strike and offers a breathable, wind-resistant upper. Also features a reinforced rand and toe bumper, forefoot protection plate, and multi-density sticky rubber outsole for stability and traction. MSRP $125
VivoBarefoot Neo Trail outsole is designed with multidirectional lugs for maximum grip, a puncture-resistant layer for added protection that is ultra-thin. Also features a water-resistant upper, a zigzag, lace-lock structure, and an anatomic toe box and zero-drop profile. MSRP $115
FEB 13, 2012 | SGBWeekly.com
I AM... PERFORMANCE
MIKAL PEVETO Director of Running Adidas America
ASSUMING YOU ARE A SPORTS OR RUNNING ENTHUSIAST, WHAT FIRST DROVE YOU TO BECOME ONE? I'm a product of the "running boom" from the 70's,
so I hardly remember my life without running being either the central part or a major part of it. I was pretty much full-on Forrest Gump as a kid in Lake Charles, LA, running 100 miles per week from age 15 to 25. While I did well as a competitive athlete, running was more a way of life than a competitive outlet.
DO YOU HAVE A HIGHLIGHT? I ran 2:29 at the Houston Marathon as a high school junior, which was a top 10 high school time in 1980.
OW DID YOU GET STARTED IN THE INDUSTRY? I was a camp counselor at H a running camp my college hosted in Brevard, NC. I met Tom Raynor at Nike. That led to my becoming an EKIN (tech rep) for Nike about five Nike's ago in Charlotte, NC. From there, I moved to Oregon as a Product Line Manager for Running. I've been running in some form or fashion somewhere ever since. ID YOU HAVE A KEY MENTOR? Tom Hartge was my key mentor in this D career and he taught me many tough-love lessons that set the stage for my career including, "change is good," "everything matters", and "just because you're passionate, doesn't mean you're right---but it sure helps!".
OU FOUNDED TWO STARTUPS BEFORE RETURNING TO ADIDAS IN APRIL 2010. Y WHAT DID YOU LEARN IN GOING IT ALONE? I didn't really go it alone the first time. I worked with three amazing partners and we did a lot of great things - pioneered DIY (design it yourself) athletic footwear and built nice products for various established brands. The second start up was on my own and quite a different experience. On the first one, I learned the power brands hold in our society - we take solace in the good ones and as giant and seemingly porous as they are, it is hard to stop them. The second one, I learned how much I liked working with other, equally passionate people. It's easier to brainstorm when there's more than one brain.
WHY DID YOU COME BACK TO ADIDAS? I can tell you with 100 percent honesty that I never had one day at Adidas that I didn't love, so coming back 22 SGBWeekly.com | FEB 13, 2012
was a dream come true. We have so much upside that it actually fills my entrepreneurial bent quite well. Patrik Nilsson (Adidas America president) and David Baxter (head of sports performance) give me enough rope to run the business and they hold me accountable, accordingly. I cannot ask for more than that. Business is sport in a sense and even more so when it's athletic based. It's an incredibly talented pool of people throughout our organization and on my team, specifically, so I'm confident we'll make magic together.
DO YOU HAVE A TURNING POINT? Moving to Germany to take on the task of rebuilding a brand following the deaths of Adi & Horst Dassler. Robert Louis Dreyfus put the pieces in place for a small group of us to make major strides. WHAT DO YOU DO FOR FUN? Good movies, good food, and good friends.
WHAT SPORTS OR ACTIVITIES DO YOU PARTICIPATE IN NOW? Running, gym work…and life.
NAME ONE PASSION THAT THE INDUSTRY MAY BE SURPRISED TO KNOW ABOUT YOU? I'm addicted to Goodwill. I'm so happy "re-purposing" has come into vogue (at least in Portlandia) so I can quit sneaking around.
FAVORITE MOTTO? Carpe diem DREAM VACATION? Summer days in Santa Cruz, California WHAT WOULD YOU BE DOING IF YOU WERE NOT DOING YOUR JOB? Be a
teacher and hold out hope that I will someday, but my history says I'd be doing this somewhere else. WHAT'S YOUR ADVICE TO SOMEONE LOOKING TO GET A JOB IN THE RUN INDUSTRY? It's giant…running stores, running events, running websites, running magazines, running shoes, trail running shoes, running apparel, insoles, caps, bags, coaching, and camps to name just 13. What are you waiting for?
WINTER TRACTION FOR ALL YOU DO
SEE YOU THERE!
Outdoor Retailer is the worldâ€™s largest gathering of outdoor brands and retailers. More ideas are launched, brands discovered, and innovations unveiled for the outdoor community here than anywhere else. Do not miss your opportunity to be on the cutting edge!
AUGUST 2-5, 2012 Salt Palace Convention Center Salt Lake City, UT
JANUARY 24-27, 2013 Salt Palace Convention Center Salt Lake City, UT
Open Air Demo AUGUST 1, 2012
All Mountain Demo JANUARY 23, 2013
VISIT OUTDOORRETAILER.COM OR CALL 949/226-5722 FOR MORE INFORMATION.