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ISSUE 1442OCTOBER 20 2014

The Weekly Digital Magazine for the Sporting Goods Industry

Introduces a New Brand Identity

K-SWISS

OCTOBER 20 2014 | SGBWeeklycom 3

Copyright 2014 SportsOneSource LLC All rights reserved The opinions expressed by writers and contributors to SGB WEEKLY are not necessarily those of the editors or publishers SGB WEEKLY is not responsible for unsolicited manuscripts photographs or artwork Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher SGB WEEKLY is published weekly by SportsOneSource

Senior Business Editor

Thomas J Ryan

tryansportsonesourcecom

9173754699

Contributing Editors

Scott Boulbol Fernando J Delgado Bill Kendy

Charlie Lunan

Editorial amp Creative Director

Teresa Hartford

teresasportsonesourcecom

Senior Graphic Designer

Camila Amortegui

camilasportsonesourcecom

Advertising Sales Account Managers

Buz Keenan

Northeast

buzsportsonesourcecom

2018875112

Katie ODonohue

SoutheastMidwest

katieosportsonesourcecom

8282443043

Circulation amp Subscriptions

subssportsonesourcecom

Group PublisherEditor In ChiefJames Hartford

jamessportsonesourcecom

3039977302

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Career ServicesSportsJobSourcecom

OCTOBER 20 2014ISSUE 1442


MAKING NEWS4 Movers amp Shakers

Wolverine Reduces 2014 Revenue Guidance on Q3 Shortfall

5 Converse Sues 31 Companies Over Chuck Taylor Knockoffs

6 Pensar Development Showcases 3D-Footwear Design

OIA Forms Executive Director Search Committee

8 Gore-Tex Debuts Global Multi-Channel Marketing Campaign

18 Industry Calendar

8PRODUCT FOCUS

10 Rocky Game Changer Boot Receives National Acclaim

Eros Sport Releases Cool T Shirts11 Kronos America and Reebok Introduce New Watch Collection

Teva Partners with Woolrich on Collection

FEATURES14 FGL Sports Set For Growth

16 K-Swiss Unveils New Brand Identity

Cover Photo Courtesy K-Swiss

MOVERS amp SHAKERS

Hydro Flask announced that Dennis Conner joined the company as its new VP of operations effective October 13 Rocco Villano was promoted to director of sourcing and planning and industry veteran Rob Mitchell joined the companyrsquos advisory board

New World Consumer Products LLC the makers of the XRCEL carbohydrate supplement line hired former professional soccer champion John Wilson as its institutional sales manager

Lands End Inc announced the rotation of several board assignments including the election of Josephine Linden as chairman of the board of directors Linden founder managing member and principal of Linden Global Strategies LLC has been a member of the board since March 2014 Elizabeth Darst Leykum who had served as chairman since April becomes chair of the nominating and corporate governance committee and Robert Galvin becomes chair of the compensation committee

Quiksilver Inc announced its founder Bob McKnight would step down as executive chairman effective October 1 and that it had elected CEO Andy Mooney as its new chairman and promoted Pierre Agnes to the position of president effective November 1 McKnight will remain on the Quiksilver board

JC Penney Company Inc appointed Marvin Ellison currently EVP of stores at Home Depot as president and CEO-designee effective November 1 2014 Ellison succeeds Myron E (Mike) Ullman III as CEO of JC Penney effective August 1 2015

Brooks runner Amy Hastings dominated the US field at the 2014 Bank of America Chicago Marathon finishing fifth in a stacked race exactly matching her personal record of 2 hours 27 minutes and 3 seconds

Wolverine Worldwide appointed Roxane Divol to the companys Board of Directors Divol 42 is SVP of Alliances for Symantec Corporation - one of the worlds largest software companies

EB Brands Holdings Inc hired a corporate CFO and a SVP of sales for its fitness division specializing in the making of accessories under the Bally Everlast Valeo and Sportline brands

Tom Osgood who served on the senior membership team for Dorel RecreationalLeisure joined K Russo Consulting Inc a leading boutique executive search firm where he will launch a new HR advisory practice

Tecnica Blizzard announced that Charlie Hepburn would be its new sales associate for Tecnica and Blizzard alpine products in California and Nevada

4 SGBWeeklycom | OCTOBER 20 2014

WOLVERINE REDUCES 2014 REVENUE GUIDANCE ON

Q3 SHORTFALL

Wolverine Worldwide Inc last week lowered its guidance for a full-year revenue growth from three to two percent stating it expected the US re-tail environment to be more promotional over the holidays than last year However the owner of Keds Merrell Saucony Sperry Top-Sider and a dozen other footwear brands said they remained confident it could hit both its 2014 and its long-range earningsrsquo targets

As we look toward to the fourth-quarter we expect a soft and highly-promotional environment at retail particularly in the US to pressure fourth-quarter revenue performance said Wolvervine Worldwide VP and CFO Don Grimes during the companys third-quarter earnings call

Wolverine Worldwide reported consolidated revenues declined 08 percent to $7111 million in its third fiscal quarter ended September 6 compared with the year prior as mid-single-digit growth from its Heritage Group Brands (Wolverine Cat Bates Sebago Harley Davidson and Hytest) and low-single-digit growth from its Performance Group Brands (Merrell Saucony Chaco Patagonia and Cushe) were offset by an 11 percent decline in sales by its Lifestyle Group Brands (Hush Puppies Keds Sperry Top-Sider Stride Rite and Soft Style) Much of the growth came from overseas

Its Lifestyle Group Brands declined 11 percent due to a double-digit decline in sales of Sperry Top-Sider shoes and the closing of Stride-Rite stores The decline at Sperry Top-Sider reflects Wolverine Worldwidersquos decision to halt distribution of the brand to some family footwear retailers a trend away from womens boat shoes and tough comps

In its Performance Group Brands Saucony sales grew in the mid-single-digits on strong demand for the Guide 7 Ride 7 and Kinvara 5 Demand for its technical and retro styles were strong in EMEA At Merrell strong mens and international sales especially in Latin America offset flat sales in North America where womens sales were off due to misses in its core casual and sandal styles

In its Heritage Group Brands Cat had exceptional results in all geogra-phies and was boosted by new technical work footwear in North America Wolverine sales grew across the outdoor heritage and work segments

Wolverine Worldwide lowered its full-year consolidated revenue fore-cast by $30 million to approximately $2745 billion which represents ap-proximately two percent growth over the prior yearrsquos revenue compared with the three percent it forecasted in July Wolverine Worldwide reaf-firmed its earnings forecast which calls for diluted earnings-per-share to grow 10 to 14 percent or $157 to $163 on an adjusted basis and $132 to $138 on a GAAP basis

Wolverine Worldwide forecasted sales to grow seven percent in the fourth quarter as overseas expansion continues to offset flat or lower sales in the US where executives expect a more promotional holiday environ-ment than a year ago The forecast anticipates the impact of a broader as-sortment of cold and wet weather boots an additional 17th week of sales compared with fiscal 2014 healthy order backlogs strong boot sales and assumes stable foreign exchange rates


CONVERsE SUES 31 COMPANIES OVER CHUCK TAyLOR

KNOCKOFFS

Converse filed lawsuits against 31 companies in New York Federal District Court accusing them of trademark infringement on its Chuck Taylor shoe The brand owned by Nike Inc is suing for monetary damages but is also seeking to prevent the continued sale of the alleged infringing product

Skechers USA Wal-Mart Fila Ed Hardy K-Mart Corp Tory Burch Ralph Lauren Corp Zulily Aldo Group HampM Highline United and Kit-son are among those being sued Of the 31 companies four are based in China two in Canada one in Australia one in Italy and one in Japan

Converse claims the companies are infringing on trademarks that cover the look of the shoe including he distinctive toe cap toe bumper and side strip as well as the diamond pattern on the bottom of the sole The Con-verse star is not in question

Converse claims look-alike Chuck Taylors have become more common in recent years with their popularity It claims to have served about 180 cease and desist letters related to the issue since 2008

It also claims to have spent hundreds of millions of dollars on advertising the shoes famous for their star stripes and rubber toe tip

and acknowledges benefiting from extra publicity it gained from books magazines newspapers movies and TV

ldquoFor generations the Chuck Taylor universally known as the lsquoChuckrsquo has captured the hearts and minds of millions of consumers selling over a billion pairs globally during the past centuryrdquo said Converse Chief Executive Officer Jim Calhoun in a statement ldquoWe welcome fair competition but we do not believe companies have a right to copy the Chuckrsquos trademarked lookrdquo

The ldquoAll-Starrdquo debuted in 1917 as a basketball shoe and was later renamed the Chuck Taylor


PENsAR DEVELOPMENT SHOWCASES 3D-FOOTWEAR DESIGN

Seattle-based product development firm Pensar Development has created a shoe concept that demonstrates how 3D printing will impact the future of the retail experience point-of-sale manufacturing and the product design process

Pensarrsquos DNA shoe concept uses footwear to examine the opportunities surrounding point-of-sale manufacturing and ergonomicbiomechanical tailoring Typically the athletic footwear market relies on set sizing to accommodate most common foot shapes and movement styles For many people the average fit does not equal the best fit To create a more user-centric design footwear needs to be based on the feet of each customer

The first step is to acquire the data that an individuals shoes will be based on Each foot is three dimensionally scanned Then the customer puts on a pair of special sensor shoes and goes for a test run or walk The sensors track movement (eg footfall pronation balance etc) and combined with the scan create a usable database to build the new shoes for the customer

Algorithms are used to translate the data into shape and the shoes start to come together Next the customer is able to customize the materials colors and textures or they can save a shoe design in advance that can be combined with their foot data when they get to the store The design then goes to print and as they shop the 3D printer creates their shoes

Costly tooling and expensive skilled labor has prevented the mass market from owning custom-tailored products The goal of the DNA concept is to illustrate a path where 3D printing would enable customers to engage in the design process and create a personalized product Automating the process through algorithm-driven design and 3D printing will make it economically viable to a much larger audience

While there are obvious benefits to consumers there are positive impacts to retailers as well First by creating products-on-demand retailers will be able to offer limitless design updates and customization Second the ability to have shoes custom fit will draw online customers back into stores Third while raw materials need to be stocked inventory of pre-built products will be greatly reduced giving retailers more flexibility and less overstock of undesired product

Pensarrsquos DNA shoe explores how 3D printing will evolve the retail experience for customers and change the way products are designed and manufactured Before this concept can become a reality there are advancements that need to take place in 3D printing technology For example the materials currently available dont offer the durability or softness necessary for wearing every day or for athletic use Further study is also required to ensure that the materials are biocompatible and safe for consumers Today the cost and time it takes to print a pair of shoes are both too high However the 3D printing industry is evolving quickly and while material challenges may prohibit immediate implementation user-driven rapid manufacturing will be realized in the near future

OIA FORMS EXECUTIVE DIRECTOR SEARCH

COMMITTEE

The Outdoor Industry Associations (OIA) board of directors has named five directors to serve on a search committee with a national search firm to find a new chief executive Frank Hugelmeyer resigned as OIA President and CEO effective October 3

Members of the OIA executive director search committee include Jennifer Mull CEO Backwoods Bob Holding co-founder Waypoint Outdoor Nora Stowell VP sales AmeriSports Mark Satkiewicz president Smartwool and Jim Zwiers SVP and president international Wolverine World Wide

The hiring committee will focus on finding a leader who can build on Hugelmeyers 15-year tenure and implement on its strategic plan with an emphasis on the top three challenges facing the outdoor industry today ndash the changing consumer base the supply chain resiliencytransparency and the access to recreation

ldquoThe board is very focused on helping members anticipate and prepare for the consumers of the futurerdquo said Mull also OIA board chair ldquoThe outdoor industry has changed more in the last five years than in any other time in its history Our association is well positioned to help guide our members so that we can adapt our supply chains business models and public policy initiatives to ensure the growth and long-term health of our industry and the lifestyles and livelihoods it supportsrdquo

SportScanInfocomA Service of The SportsOneSource Group

Achieve Your GoAls

SportScanInfo is the only weekly retail sales trend reporting solution

for the active lifestyle marketTo learn more call 3039977302 or

SportScanSportsOneSourcecom

BREADTh OF DATA DEPTh OF DATA TIMElINESS OF DATA


GORE-TEx DEBUTS GLOBAL MULTI-CHANNEL

MARKETING CAMPAIGN

Coming on the heels of the successful debut of its Gore-Tex Surround prod-uct technology at Outdoor Retailer Summer Market and the outdoor fair in Friedrichshafen W L Gore amp Associates (Gore) will debut a multi-year multi-channel international marketing campaign ldquoExperience the Differ-encerdquo in support of the Gore-Tex brand this fall Launching in four coun-tries the campaign with a seven-figure budget will generate more than one billion impressions over the next two years through video online and print

Developed by German-based Brand and Design Agency Zeichen amp Wunder the campaign strengthens the direct connection between brand and consumer with a distinctive visual approach that showcases the emotion of personal experience regardless of weather challenges

The campaign motifs feature close-up emotive images of people exploring the outdoors in a split photo that illustrates comfort and weather protection in different end-uses The creative thinking behind the campaign is to showcase the special properties of Gore-Tex product technology in all weather situations portrayed through the Split approach The good weather on one side and the bad weather on the other illustrate the main functionalities breathability and waterproofness in an easy way The split approach serves as a red thread across media through the campaign and is extensible for new designs in the future

Specific channels of distribution include print magazines TV online and social media platforms Out of Home and cinema

ldquoThe springsummer 2014 season was the start of a significant and com-pelling brand program for Gore-Tex footwearrdquo said Tom Bugg global brand manager at Gore ldquoOver the next several years the company will continue to increase its investments to further strengthen the brand In 2013 more than 34 million Gore-Tex products were sold in more than 50 countriesrdquo

POWER VERSATILITYLIGHT

ORDER NOW WWWCOGHLANSCOM

SGBweeklySept2014indd 1 8262014 41704 PM


ROCKy GAME CHANGER BOOT RECEIVES

NATIONAL ACCLAIM

Rocky Boots a division of Rocky Brands Inc said its Rocky Athletic Mobility Game Changer earned Editors Choice among knee-high boots by Outdoor Life magazine

The Game Changer boots have a thinner upper than most rubber boots thanks to a liquefied polyether construction They also weigh less than 15 pounds per boot and fit more like athletic footwear than rubber boots Style RKYS072 also features the Retain heating system which utilizes a reflective lining to maintain body heat eliminating the need for bulky in-sulation

The Game Changer is a perfect example of what our product develop-ment process can accomplish said Jordan Gottke marketing director for Rocky Our goal is to remedy the problems outdoorsmen face in the field through the use of new materials and technology and we are on the leading edge among footwear manufacturers in that area

PRODUCT FOCUS

EROs sPORT RELEASES COOL T SHIRTS

Made in the USA athletic apparel brand Eros Sport based in Laguna Niguel CA is set to launch its Cool T Shirts made from cutting-edge microfiber breathable fabric that wicks moisture away for a cooling effect during exercise

Wear test subjects who wore the Cool T Shirt said that they felt more comfortable during their workouts and remarked that they also felt more energized

Eros Sport Cool T Shirts are best suited for Yoga Pilates Crossfit strength training cross training mud runs boxing cycling and running The shirts come in black with blue contrast stitching and char-coal The shirts also compliment Eros Sport Core Vibe shorts Core Active shorts and Core Energy shorts


KRONOs AMERICA AND REEBOK

INTRODUCE NEW WATCH COLLECTION

Kronos America LLC in partnership with Reebok unveiled its newest watch collection for men and women Inspired by Reebokrsquos focus on fitness lifestyle the collection features classic retro vintage and iconic designs that capture the brandrsquos essence and history with styles such as Pump Vintage Nerd Warm Up Icon Block Party and Workout Z1G

ldquoWe are thrilled to introduce the Reebok Watch Collectionrdquo said Christian Jamin CEO of Kronos America LLC ldquoItrsquos an hon-or to work with such an iconic brand and bring a new diverse line of both functional and fashionable pieces that capture the essence of Reebok to consumers and brand enthusiasts everywhererdquo

In keeping with the Reebok brand the collection features vibrant colors for men and women and all of the watches include a rubber or silicone strap with certain styles featuring gold-plated or stainless steel bracelets with stone detailing

ldquoItrsquos an exciting time for Reebok and partner Kronos America LLC to launch our latest watch collectionrdquo said Linne Kimball head of licensing at Reebok ldquoWe are always looking for ways to expand the depth of products for our consumer and the new range is both fashion-conscious and functional inspired by some of Reebokrsquos most iconic stylesrdquo

The current Reebok watch collection includes 56 pieces with 15 different styles

The line will be sold at Reebok FitHubs and select Macyrsquos JCPenney Kohlrsquos and Bon-Ton stores as well as on Reebokcom Macyscom JCPenneycom and Kohlscom beginning this month 2014 Prices range from $50 to $150

Teva a division of Deckers Brands announced its newest collaboration with Woolrich Extending the time spent in the comfort of Teva sandals Woolrich has paired wool-blended socks to complement the patterned webbing and colorways of Teva Original Universal

We continue to celebrate the versatility of our iconic silhouette Like our consumers the Original Collection comes to life through personalization Unique collaborations help to expand the freedom that our brand encour-ages while proving that fashion is subjective and can certainly be polar-izing said Lorie Pointer Tevarsquos director of product and design

For those who might need some inspiration to help pull off the Sock-sandSandals look Teva teamed with stylists Elizabeth Stewart and Kira Sheppard to offer some styling tips that can be found on Tevacom

The Teva x Woolrich collaboration includes two style options for men and women - a solid Teva sandal with a printed Woolrich sock and a pat-terned webbing sandal with a solid Woolrich sock The sock and sandal combination are are being sold together for $65 at select Urban Outfitter retail locations as well as online at Tevacom and Woolrichcom

TEVA PARTNERS WITH WOOLRICH ON

COLLECTION


t its annual analyst meeting Canadian Tire Corp Ltd outlined its three-year vision for annual growth of at least 9 percent at FGL

Sports which largely includes Sport ChekOfficials also announced annualized sales growth targets of at least 3 percent at

its flagship Canadian Tire chain and five percent or more at Marks its work wear chain In addition the company announced targets for return on invested capital of nine percent by the end of 2017 return on receivables growth in the financial services business of at least six percent and average diluted EPS growth of 8 to 10 percent over the three-year period

At the meeting Michael Medline president and incoming CEO of Canadian Tire Corporation said that since completing the acquisition in August 2011 FGL Sports has achieved 12 positive comp quarters in a row

Sport Chek by far the biggest part of FGL has put together three double-digit quarters in a row of comp ldquoand theres more growth to be hadrdquo

Medline noted that since acquisition FGL Sports has had a ldquosimple two-part strategyrdquo - expanding Sport Chekrsquos footprint and building ldquoan unassailable connection with our target customersrdquo

Regarding expansion Medline said Sport Check is on track to meet its 2 million-square-foot target set in 2012 At the time the company said it would add more than 2 million square feet of retail space under the Sport Chek and Atmosphere banners between 2012 and 2017 representing more than 50 percent to the chains existing retail space

At the meeting Medline noted that some of its existing Sport Chek stores are being converted to 12 to 14 Hero stores in addition to the flagship stores Many incorporate some of the prime elements of its West Edmonton Mall location an 80000 square-foot retail store opened earlier this year that features 800 in-store screens showing 240 channels of digital content

A new Burnaby flagship will open this November and Medline announced plans to open a 75000-square-foot store at Square One in Mississauga and a 45000-square-foot location at Yorkdale in 2015 At least two more flagships are expected to open in 2016 and Medline sees room for 10 to 12 flagships across Canada In Spring 2015 a Sport Chek store is set to replace a Real Sports store in Maple Leaf Square the home of the Maple Leafs hockey team The store will bring ldquoour brand and products even closer to our customersrdquo

Noting that Sport Chek has historically found challenges finding prime real estate Medline cited the Maple Leaf Square lease as a sign that Sport Chek has ldquothe opportunity to put a store in any space Our vital relationship with landlords has completely turned aroundrdquo

In addition to securing better real estate Sport Chek is accessing well-known labels including Quiksilver Roxy Arcteryx and Ping Golf and

FGL SportSSet For GroWth

By Thomas J Ryan

CLICK TO PLAy VIDEO

Photos courtesy Sport Chek

Michael Medline president and incoming CEO of Canadian Tire Corporation

A


starting to sell to Sport Chek Said Medline ldquoWe are getting the best products in the world from the best brands in the world ndash the Nikersquos Adi-dasrsquo Under Armourrsquos North Facersquos Columbiarsquos Bauerrsquosrdquo

He also Sports Chek intends to ldquobecome the world-class destination for sport technologyrdquo while admitting he could offer few details on the plan He added ldquoYou will begin to see new ven-dors and partners many of which are consid-ered global icons selling their products in our stores Weve already started down this journey with the addition of technology-infused basket-balls tennis rackets and wearablesrdquo

Beyond expansion and brand upgrades Sport Chek is also working to ldquodeepen our emotional connection with our customersrdquo The brand reinivention started three years ago and focused on a group of active lifestyle ldquoachieversrdquo that rep-resented just 27 percent of the countryrsquos shop-pers yet drove about 59 percent of all sporting goods sales in Canada

ldquoWe refined the Sport Chek brand to speak directly to those core customersrdquo Medline said ldquoAnd in just three years weve moved every single retail metric we track by 10 to 20 points more favorable And the trailer indicator of success is more than a higher likelihood to shop or increase brand affinity We see a material strength in week-to-week comp store sales that simply did not exist three years agordquo

He added about the target group ldquoBy con-necting on a highly emotional level this target group started to see Sport Chek as the enabler the catalyst to help them live more active and healthier lives to find their betterrdquo

Beyond ads the group was reached through social media channels strategic sponsorships and digital marketing Said Medline ldquoWe cre-ated an extensive digital footprint that engages consumers through Google through Face-book Twitter and YouTube And our Blue Jay video celebrating players and their fathers achieved 9 million social impressions 80 percent of which were organic driven by one-to-one conversations with fans and influencersrdquo

The companyrsquos overall Olympic partnership ldquois only getting started and one that Canadians care a lot aboutrdquo with the Sport Chek Olympic ad resulting in the strongest recall and brand link the company had ever seen Its digital flyer enables Sport Chek to target the 18- to 34-year-old demo-graphic with inspirational marketing content

ldquoThis year alone we pulled the paper flyer completely and replaced it with a digital flyer four different times to test and learnrdquo said Medline ldquoIn each case we drove significantly more sales and provided our stores with the flexibility to adjust for weather geography and categories on the fly This trend to digital flyers will continue as we aim to transition more than 20 percent of our print spend to digital in 2015rdquo

He added that Sport Chek would ldquocontinue to be the banner where we test and learnrdquo for the rest of Canadian Tirersquos businesses He added ldquoIn the process Sport Chek will lead the industry as one of the best retail experiences in the world And our vision is that Sport Chek one day will become as iconic to sports enthusiasts as Canadian Tire is with Canadiansrdquo

Beyond Sport Chek Medline said the op-portunity within the Canadian Tire chain is to ldquosuccessfully move from a general merchant to a group of specialty retailers under one big roofrdquo While Canadian Tire has accomplished this in the automotive category Medline sees the op-portunity in the ldquoPlayingrdquo or sports category

ldquoCanadian Tire and FGL Sports combined are the fifth largest sporting goods retailer on the planetrdquo asserted Medline ldquoFifty-seven percent of Canadian sporting goodsrsquo buyers have purchased from one of the CTC companies for sports in the past 12 months Only 24 percent of those purchases are Canadian Tire and we can do more We brought over one of our top FGL merchants to run Playing at CTR We created a halo around our sports brands with our Olympic sponsorships and partnerships with Canadian athletes and are putting in new hiring and recruiting strategies focused on ensuring that our in-store staff and category specialists in sports are sports enthusiasts Theyrsquove got to love sportsrdquo

That emphasis is also embraced by its We All Play for Canada platform The effort will include


getting kids active for an hour a day in schools through the Active at School program and helping families in need get their kids into organized sportsrsquo programs through the companys charity Jumpstart

Medline said Canadian Tirersquos focus around sport through such sponsor-ships ldquohas not only enabled us to connect with our customers through our marketing but also in our communities Since its inception Jump-start Charity has given back more than $70 million and helped more than 800000 children live a healthier and more active life Its a legacy thats important to us but also one that matters to Canadiansrdquo

The three-year plan overall also includes a ldquogenerational shiftrdquo program to target a younger demographic and focus on digital investments includ-ing a vastly improved website

ldquoOur current online presence is disappointing and not up to our stan-dards yet In fact it reflects poorly on our brandsrdquo said Medline

Canadian Tire has put into place 70 percent of the infrastructure it needs for an improved digital presence that offers customers more than just online shopping The goal is to make the companyrsquos site an online hub keeping customers entertained informed and engaged

ldquoThe web sites today all look the same Ours needs to be different We will create a unique online destination that will inspire customers to keep coming backrdquo said Medline

Canadian Tire wants to better target 30- to 49-year-olds with a focus on young families Canadian Tire will offer more items such as indoor sleepover tents snow paint and outdoor skating rink kits to target young families but the shift will also be noticeable in marketing Medline elabo-rated ldquoInstead of ads featuring dad painting the deck new ones will focus on a father and his young son building a tree houserdquo

Medline will become CEO of Canadian Tire effective December 1 replacing Stephen Wetmore who launched the companyrsquos successful brand revival six years ago

Also at the meeting the company expects to make an average annual capital investment of $575 million from 2015-2017 including significant new investments in digital technology and an expansion and upgrade of the companys store network These investments do not include expendi-tures related to distribution center capacity and any properties acquired by CT REIT from vendors other than the company

The company announced that it intended to buy back an additional $400 million of its stock and also confirmed that it would maintain its dividend policy paying out 25 to 30 percent of the prior years normalized earnings

As the company continues to evaluate possible acquisitions to grow core categories it will look for companies with a strong financial outlook a brand with great potential a profitable base and runway for growth Also any acquisition must have a distinctive long-term value proposition that can be strengthened through existing CTC expertise

He also said Canadian Tire had no plans to expand Canadian Tire or Sports Chek to the US noting that only Marks ldquocould ever make sense to bring to the USrdquo But he also said the company continually gets asked whether it will expand outside Canada and he said the company would consider such an acquisition if it reached managementrsquos criteria

ldquoWe are picky as hell and I would rather stay in Canada I guess because its our home marketrdquo added Medline ldquoNow importantly I am not trying to signal you on anything here We do not have an imminent transaction in the pipeline The headline here is not lsquoCanadian Tire is Moving Southrsquo Thats not what Im saying But if we saw something great wed consider itrdquo


1866YAKTRAX | WWWYAKTRAXCOM

WINTER TRACTION FOR ALL YOU DO

copy2014 Implus Corporation Yaktraxreg is a registered trademark of Implus Corporation 1014


S eeking to gain momentum around a successful reboot of the brand K-Swiss introduced a new brand identity that celebrates its place as

the only heritage American tennis brandK-Swissrsquo new look brings the brand back to its founding roots in 1966

and is characterized by a new visual language including a directional logo classic 1966 typeface and signature Brunner Blue colorway inspired by the blue courts of Americarsquos championship stadiums

ldquoThe refresh of the brand ID is one piece of an overall plan to rebuild the K-Swiss brandrdquo said Barney Waters chief marketing officer of K-Swiss Inc which was acquired by South Korearsquos ELand in April 2013

The first step was to reestablish K-Swissrsquo original authentic brand foun-dation as the heritage American tennis brand said Waters The second was working to reach the retailer community to sell the new strategy vision and product line Having reconnected with retailers the final step was en-hancing the consumer facing elements of the brand

ldquoBrand identity is a big piece of thatrdquo said Waters ldquoThe old logo and symbol felt like they were trapped in the past they needed to be brought up to date Wersquove modernized and refreshed the logo while retaining the elements with equity like the shield shape five stripes and the red and blue color combinationrdquo Among the changes with the update

Modernizing The ShieldThe new minimalist shield logo retains the classic K-Swiss five stripes trademark although the orientation of the stripes has changed The stripes now point upward to signify the brandrsquos momentum toward the future The streamlined stripes are now positioned at a precise 58-degree angle

K-SwiSS UnveilS new Brand identity

A Color For TennisThe red white and blue K-Swiss logo has long signified America as the place where the brand was introduced in 1966 The classic color trifecta is given a facelift with the introduction of an official brand color Brunner Blue Named for K-Swissrsquo founders brothers Art and Ernie Brunner

By Thomas J RyanPhotos courtesy K-Swiss


the color matches the legendary shade of blue found on Americarsquos most competitive tennis courts The rich and sophisticated hue provides a premium feel and will be introduced into all branding elements including the K-Swiss logo packaging retail displays and website

Legendary LettersThe typeface used in the K-Swiss wordmark draws inspiration from the font used by the US Federal Highway Administration on interstate road signs Created the same year K-Swiss was founded in 1966 the font evokes the spirit of the open road and the innovative drive used to craft each K-Swiss product The angles in the letters lsquoKrsquo and lsquoSrsquo are positioned at a 58-degree angle to complement the orientation of the stripes in the new Shield Logo trademark

A Sleeker FutureThe new logo wordmark Brunner Blue color and updated brand imagery will be featured prominently across the K-Swiss digital presence positioning K-Swiss as a brand that embraces and adapts to change while paying tribute to its past

Waters said in the year since being acquired by ELand one of the largest South Korean conglom-erates with close to 200 brands and operating more than 10000 stores worldwide K-Swiss has managed to achieve a significant turnaround financially

ldquoOur first goal was to return the brand to profit-ability and we are on track to do thatrdquo said Waters ldquoAt the same time wersquove completely revamped the product and marketing teams and have brought in fresh talent from some of the best brands in our industry The atmosphere is now dynamic and cre-ative as it should be in a company like oursrdquo

Most significantly K-Swiss is back into almost all of the premium retail-ers itrsquos targeted including Foot Locker Nordstrom Bloomingdalersquos and Urban Outfitters ldquoWersquove been lucky to have the support of the industryrdquo said Waters ldquoThey know the brandrsquos potential and they believe in what wersquore doing At the same time the athletic industry is desperate for alter-nativesrdquo

As part of its turnaround push K-Swiss is moving away from its run and triathlon product while putting greater focus on tennis its core com-petency Waters said in recent years the company veered away from the authentic brand position

ldquoOur strategy is to get the brand back to its authentic roots of heritage American tennis and build from there so Court is the common denomi-nator in what we dordquo said Waters ldquoCourt Performance for tennis players Court Style for casual wear and Court Fitness for training Our approach to fitness training is centered on lateral movement which is the primary movement in tennis and also a huge part of modern workouts Why wear a running shoe designed for repetitive forward motion if yoursquore doing multi-direction multi-speed workouts which most people now arerdquo

At the top tier of lifestyle K-Swiss will relaunch the original Si18 Inter-national a performance tennis shoe from 1990

ldquoThis will be a pinnacle shoe for us packed with original technology but with an authentic 90rsquos look and feelrdquo said Waters ldquoThis will have very tight distribution in the best lifestyle stores At the same time white court shoes are coming back with a bang and thatrsquos our expertise so we have a

big program built around our heritage white court styles like the Classic and Lozanrdquo

Another big area for K-Swiss is International distribution with new distributors in China Australia South America the Nordics and the Middle East Said Waters ldquo2015 will be a big year for K-Swiss now that wersquove shored up the foundationsrdquo

ELandrsquos acquisition of K-Swiss Inc also included Palladium the can-vas Pampa boot brand originally made for the French Foreign Legion in 1947 K-Swiss re-launched the brand in 2010 and it has grown rapidly ever since and is now distributed in over 80 countries

ldquoPalladium has grown like wild fire and continues to do sordquo said Waters ldquoItrsquos been a really fun ride as the brand is now five times the size it was when we launched in 2010rdquo

Palladium now has over 50 Palladium stores around the world Its new-est market China is off to a ldquovery strong startrdquo with demand outpacing supply Added Waters ldquoWersquore also launching Palladium apparel in Asia this year with the design direction being a combination of our military

heritage and our modern position as a city explor-ing brand so wersquore becoming a head-to-toe brandrdquo

PLDM a sister collection recreated by the original Palladium team in Lyon France to complement the popular Pampa boot style is also seeing greater in-vestments under ELandrsquos ownership PDLM focuses more on leather with burnishing and vintage treat-ments inspired by biker military and workwear Said Waters ldquoIt is designed in France and much of the product is made in Portugalrdquo

With the acquisition of K-Swiss Inc ELand formed K-Swiss Global Brands based in Westlake Village CA with a goal of acquiring a portfolio of Western-based brands to help it better compete

globally A month after acquiring K-Swiss ELand acquired OTZ Shoes the comfort footwear brand that features cork footbeds engineered to mold to the shape of the wearers foot

Waters said OTZ is now fully integrated into K-Swiss Holdingsrsquo shared services support and systems and is positioned for growth The brand ac-cording to Waters has a strong back-story being founded in Malibu and being based on the oldest shoe ever found on Oetzi the Iceman who died over 5000 years ago in the Austrian mountains But OTZ is especially benefiting from resurgence of cork-based footwear marked by the fashion craze around Birkenstocks and many consumers again are recognizing the health benefits inherent in cork footbeds

ldquoOTZrsquos focus on the Lohas movement (life of health and sustainability) sets them apart as a brand amidst a sea of itemsrdquo said Waters ldquoA huge percentage of the population is making conscious decisions about what they buy whether itrsquos eating organic choosing farm-to-table restaurants reading product labels or preferring footwear with minimalist construc-tion natural materials and comfort - like OTZrdquo

Waters also noted that while ELand and K-Swiss Holdings havenrsquot made another acquisition since OTZ ELandrsquos strategy hasnrsquot changed

ldquoWe want to be a multi-brand company with shared back-end servicesrdquo said Waters ldquoThis model creates efficiencies which positively affect the pricevalue equation for the customer We are continually looking at MampA opportunities to complement the portfolio of brands as the efficiencies increase as more brands share servicesrdquo

Photos courtesy K-Swiss


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S Athletic Dealers of America1395 Highland AvenueMelbourne FL 32935t 3212540091f 3212427419athleticdealersofamericacom

National Shooting Sports FoundationFlintlock Ridge Office Center11 Mile Hill RoadNewtown CT 06470t 2034261320 f 2034261087nssforg

National Sporting Goods Association1601 Feehanville Drive Suite 300Mount Prospect IL 60056t 8472966742f 8473919827nsgaorg

Nationrsquos Best Sports4216 Hahn BlvdFt Worth TX 76117t 8177880034f 8177888542nbscom

Outdoor Industry Association4909 Pearl East Circle Suite 300Boulder CO 80301t 3034443353f 3034443284outdoorindustryorg

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Snow Sports Industries America8377-B Greensboro DriveMcLean VA 22102t 7035569020f 7038218276snowsportsorg

Sports Inc333 2nd Avenue NorthLewistown MT 59457t 4065383496f 4065382801sportsinccom

Sports Specialists Ltd590 Fishers Station Drive Suite 110Victor NY 14564t 5857421010f 5857422645sportsspecialistsltdcom

Team Athletic Goods629 Cepi DriveChesterfield MO 63005t 6365303710f 6365303711tag1com

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CALENDAR For full year calendar go to sportsonesourcecomevents

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3-5 NBS Fall Athletic Market Ft Worth TX

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DECEMBER

2-4 EORA Southeast Market Asheville NC

9-10 EORA Southeast Market Ellicott City MD

10-11 Atlanta Fashion Shoe Market Atlanta GA

JANUARy 2015

13-17 NBS Winter Market Fort Worth TX

FEBRUARy

18-21 Sports Inc Outdoor Show Phoenix AZ

18-23 NBS Spring Show Fort Worth TX

Photo courtesy Sport Chek

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Northeast

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2018875112

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OCTOBER 20 2014ISSUE 1442


MAKING NEWS4 Movers amp Shakers

Wolverine Reduces 2014 Revenue Guidance on Q3 Shortfall

5 Converse Sues 31 Companies Over Chuck Taylor Knockoffs

6 Pensar Development Showcases 3D-Footwear Design

OIA Forms Executive Director Search Committee

8 Gore-Tex Debuts Global Multi-Channel Marketing Campaign

18 Industry Calendar

8PRODUCT FOCUS

10 Rocky Game Changer Boot Receives National Acclaim

Eros Sport Releases Cool T Shirts11 Kronos America and Reebok Introduce New Watch Collection

Teva Partners with Woolrich on Collection

FEATURES14 FGL Sports Set For Growth

16 K-Swiss Unveils New Brand Identity

Cover Photo Courtesy K-Swiss

MOVERS amp SHAKERS













Q3 SHORTFALL











KNOCKOFFS



















COMMITTEE






Achieve Your GoAls







MARKETING CAMPAIGN











NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































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UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA
















MOVERS amp SHAKERS













Q3 SHORTFALL











KNOCKOFFS



















COMMITTEE






Achieve Your GoAls







MARKETING CAMPAIGN











NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA


















KNOCKOFFS



















COMMITTEE






Achieve Your GoAls







MARKETING CAMPAIGN











NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA


























COMMITTEE






Achieve Your GoAls







MARKETING CAMPAIGN











NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA

















Achieve Your GoAls







MARKETING CAMPAIGN











NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA


















MARKETING CAMPAIGN











NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA


















NATIONAL ACCLAIM




PRODUCT FOCUS



















COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA






























COLLECTION














By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA





























By Thomas J Ryan

CLICK TO PLAy VIDEO



A





































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA




















































































TR

AD

E A

SS

OC

IAT

ION

S |

BU

YIN

G G

RO

UP














NOvEMBER




DECEMBER




JANUARy 2015


FEBRUARy













GO FOR IT

100 MADE IN USA

























GO FOR IT

100 MADE IN USA
















k-swissd4ex6pvli7xof.cloudfront.net › sgbweekly › 2014 › sgb_14q4 › ...issue 1442 october...

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