SPEEDING AHEAD

Will Kevin Plank’s big bet on running pay off

for Under Armour?

FOOTWEAR NEWS | JULY 14, 2014 | VOLUME 70 | NO. 24

Athletic brands punch up the palette for spring, showing white, gray and black sneakers with dazzling neon accents. Here, fresh technical running looks for men by MIZUNO and for women by PUMA.

POP TRACKS

10 styles that sizzledon the Paris runways

ONE ON THE RUNWhy a lower profile could boost Hoka One One’s image

TOUR DE COUTURE

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UP FRONT × NEWSMAKERS × ON DEADLINE

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Armour’sPlate More determined than ever, Kevin Plank

opens up about getting Under Armour’s shoe biz right and why running is critical to the brand’s success. BY NEIL WEILHEIMER

In Baltimore’s Locust Point, a hub of former industrial buildings now turned into homes for hipsters and businesses, activity was thriv-ing last Tuesday, even as tempera-

tures threatened the 100-degree mark.It was shortly after 1 p.m., and a dozen

fitness-minded people were outside on Under Armour’s replica of a football field doing pushups, lifting weights, lunging and running sprints. They were all young and buff, and they were committed to sweat-testing company gear.

Inside the adjacent building overlook-ing the company-branded field (nearly everything here has the interlocking UA logo somewhere on it), Kevin Plank sat at a conference table in his office, talking about where the nearly $3 billion athletic brand he built is headed next and his obsession with fixing the things Under Armour doesn’t excel at.

Known for fostering an aggressive, if at times brash, corporate culture, Plank was open about lessons he’s learned as CEO of a major company and the advice he’s received along the way — some of which he gleaned from famous connections. For instance, he’s been known to text

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former U.S. Secretary of State Colin Powell for professional counsel, and he once benefited from advice casino king Steve Wynn gave him after the firm’s initial public offering in 2005.

“He said that I will be tested, tested with medi-ocrity. And that people will justify decisions to me and they will give every financial reason as to why I should do something,” Plank said. “But he said, you’re running your brand, know what you and your brand stand for.”

It’s no surprise, then, that Plank and his team have been methodically plotting how to translate the Under Amour name into top-notch footwear product.

He and his executives learned some harsh les-sons about the sneaker space after their splashy, superhyped push into the non-cleated market in 2008 failed to connect with consumers. Plank openly acknowledged the product was not up to the company’s standards.

Since then, the firm has hired Dave Dombrow, now head of footwear design. It quietly opened a footwear and design center in Portland, Ore., in Nike Inc.’s backyard in the spring of 2013. (The center began with two workers and quickly swelled to 28; plans call for 50 employees there by the end of 2015.) Then in October, Under Armour promoted longtime staffer — and Plank’s first partner — Kip Fulks to president of product, in addition to his existing COO role. And in March of this year, the firm added former Mizuno and Nike executive Fritz Taylor to its ranks, charging him with the business side of all running footwear.

The manpower moves are paying off. Industry experts said Under Armour’s footwear is a far cry from where it began.

“The footwear has steadily developed its own Under Armour personality,” said Matt Powell, an analyst at SportsOneSource. “The shoes don’t look like other companies’ shoes, and their early shoes did. They were very derivative. Now they have their own design point of view and personality.”

Inside company headquarters (a former

detergent factory that now houses about 1,300 employees), execu-tives are most excited about the latest line of running footwear and its expanded use of SpeedForm technology.

After launch-ing the $100 SpeedForm Apollo in February to much retail success, Under Armour is betting even bigger for spring ’15 with a broader collec-tion. It will debut SpeedForm Gemini, a $130 shoe targeting the run-specialty channel. It also plans to follow up with another trainer called SpeedForm Apollo Vent.

Executives believe the SpeedForm prod-ucts, which are made in a bra factory instead of a traditional footwear production facility, will differentiate the company from other brands — and, of course, boost total footwear sales, which are expected to hit $400 million this year, up from $300 million in 2013. The line has distinguishing traits such as a close fit and a seamless heel, and uses materials that enhance breathability.

The Gemini, in particular, features a cushion-ing system underfoot that allows the material to adapt based on how hard the runner strikes the ground.

“Running is key to who we are now, but it’s also key to who we are going to be in the future,” Dombrow said.

To help tell the new product story, Under Armour will begin “a substantial marketing push” early next year. The campaign is expected to include a mix of TV, print and digital spots, as well as grassroots efforts at small running events and major marathons. Top brass said the firm will announce new race sponsorships in the coming weeks. (Under Armour typically spends 11 percent of revenues on marketing each year.)

The timing couldn’t be better, as participation in running events is on the rise.

According to a recent Running USA report, the number of people getting active in the sport has grown 70 percent in the last decade. The study revealed record numbers of female finishers and people completing half-marathons. What’s more, new types of races have also fueled interest in the sport, from Color Runs and Tough Mudder-like competitions to zombie races.

“While [Under Armour] is growing market share in running, it’s still the No. 6 brand. There are a lot of brands to get past to compete with Nike. The best category to do that in is run-ning,” SportsOneSource’s Powell said. “[Choos-ing footwear] is a very personal decision for a runner. They take their decisions very seriously. That’s the category Under Armour ought to be pushing hard in. Let some of the other things go to the back burner — like basketball, where Nike has 95 percent of the market.”

Executives said they have the strategy right this round. And they have little doubt consum-ers will see the difference.

“When we launched our SpeedForm Apollo, we unlocked about 50 percent of the potential. We unlocked some cool new ways to manufac-ture shoes,” Fulks said. “But with Gemini, we took it to the next level. With the Gemini, we just learned more. We also hired more people with a wealth of knowledge on biomechanics, on engineering, industrial design, textiles. We didn’t have those people three years ago.”

Analysts said the new product also gives the firm “price stratification” with retailers.

“They’ve executed on strategy really well,” said Camilo Lyon, an analyst with Canaccord Genuity. “They have footwear from $70 to $130, and hit other increments up to that. And that matters. They can get into sporting goods, mid-tier retailers and now the specialty channel.”

Still, winning over consumers will be a hard slog.

While Plank is clearly up for the fight, it’s easy to see his frustration with the stigmas attached

Running is key to who we are now, but it’s also key to who we are going to be in the future.”— Dave Dombrow

New SpeedForm looks, including the

much-anticipated Gemini, near right

(continued on page 21)

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Guest Lists Here comes the bride. Louise and Vince Ca-muto traveled to Montecito, Calif., to watch

longtime business partner Jessica Simpson marry Eric Johnson. Insiders told Spy

that several bridesmaids donned custom Jessica Simpson looks, while Simpson herself paired her Carolina Herrera gown

with custom Brian Atwood pumps. “I was excited to work with Jessica for her wedding

day and create something to reflect her bubbly personality,” Atwood said. “She wanted a fabulous platform

sandal that had great support; she wanted to be able to dance all night long in them.” Louise Camuto’s adventures don’t stop there. “Every summer, I look forward to taking our 10-year-old

son to visit my family in Sweden where I grew up,” she said. “It’s a beautiful country and nice to experience it with him. It’s important that he knows his heritage, both Italian and Swedish.” When she’s back at home, Camuto has some sweeter plans: “We take frequent trips to the beach and [New York Italian restaurant] Sant Ambroeus for ice cream.”

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JULY 14, 2014 | | 7

By Kristen Henning, with contributions from Christian Allaire and Khia Mercer

Bill Clinton alongside Michael Greenberg and the Skechers team. The former President was on hand to give the keynote address at the brand’s annual Global Conference to about 1,500 team members. “Within America, all over the world, people who believe in win-win scenarios, who really are trying to build networks of creative coopera-tion, are making good things happen,” Clinton said to the crowd.

SPOTTED ...

Nature’s Nurture The dog days of summer are calling Ken Downing. Neiman Marcus’ SVP and fashion director intends to take a break from his jet-setting lifestyle before the busy fashion-week diary kicks off in September. “My summer is mini-breaks at my country house on a lake. I live on an airplane, [so spending] time with my dog and the tranquility of the country is my perfect bliss,” Downing said. He also plans to flex his green thumb at his recently acquired acreage near Dallas, which he hopes to transform into a sculpture garden. Meanwhile, Karen Katz, Neiman Marcus Group president and CEO, is using her vacation time to get in touch with nature. The company leader is packing her hiking boots and heading with her husband Alan to the mountains. “We’re leaving Dallas’ 100-de-gree heat behind and heading to the wildflower capital of the world: Crested Butte, Colo.,” Katz said. “We’ll be high up in the mountains at elevations over 9,000 feet where it’ll be a cool 70 degrees, making for some very long and challeng-ing hikes with friends.”

Urban EdgeHeather Williams is back. Though the founder of H Williams took a break for financial reasons back in fall 2011, the Brooklyn-based designer has relaunched her label for the fall and spring — and it’s got a whole new look, including chunky slip-ons and mules. “Before, my line was strictly dress,” she said. “[Now], in doing more casual product, the edginess can be really mas-culine, so I wanted to put some femininity in the product.” Williams spent the past few years consulting for brands such as DKNY, where she eventually partnered with a factory to relaunch with a more contemporary price point (styles range from $279 to $595). But don’t mistake the collection’s urban vibe for unrefined: The designer has three friends who have requested her shoes for their wedding days. “People want [something different],” she said. “They want something they could wear again.”

INSIDER × NEWSMAKERSFN Spy

Selling Sex“Masters of Sex” is mastering footwear looks for season two, where costume designer Ane Crabtree showcases period footwear for the show set in the early 1960s. “What I want is for the viewer to identify with characters so much that they don’t feel the separation between past or present, there is something so classic about their [style],” said Crabtree. Here, the costumer shares shoe secrets and how the show has updated — and outdated — her wardrobe.

Any challenges with shoe selection? “We love to be absolutely realistic head to toe, with late ’50s to early ’60s period attire. Our favorite footwear looks were always the most delicate. And when shooting in Los Angeles, it was 90 degrees and shoes would disintegrate. Actors wore their shoes for 12 to 18 hours.”

What footwear styles can we expect for season two?“High heels and platforms didn’t exist back then. We turned to shoes that resemble period shoes, but they are brand spanking new. For our principals, we use modern-day shoes — Calvin Klein does a really clean pump

with not too high of a heel. We also use Nine West and some Italian brands as well. For the gents, Michael [Sheen] has been wearing a

very classic wingtip by Brooks Broth-ers. We also search on Zappos.com for comfort shoes because those look sort of period. This season, we are looking for a bit of a lower kitten heel for the

early 1960s.”

Has your style been taking a trip back in time, then?

“Being a costume designer, you can be self-less and do whatever is needed for the actors

and directors. Then there are moments of extreme selfishness, where I sketch something on a napkin at breakfast that I want for Lizzy [Caplan]. I will take that to the tailor, and he says, ‘Madam, you should have that as well.’”

SPY

Resort style

Michael Greenbergand Bill Clinton

Ken Downing

“Masters ofSex” cast

Atwood’ssketch

LizzyCaplan

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BY KRISTEN HENNING

NEW YORK — For Titan Industries Inc., 2014 is all about rebuilding.

After a shaky past year, the Huntington Beach, Calif.-based company is updating its portfolio in a bid to become more competitive. For spring ’15, Titan will launch Gx by Gwen Stefani on a broad scale, partner with comfort line Olivia Childs and take over the license for Cynthia Vincent footwear.

The new lines will join four other licensed brands at Titan — L.A.M.B., Badgley Mischka, Joe’s Jeans and Charles Jourdan — plus in-house brands Penny Loves Kenny and French Follies, for a total of nine labels. (Titan recently severed ties with comfort brand Flogg . The firm has partnered with a rotating cast of brands over the past few years, including Bebe, Betsey Johnson and CeCe L’Amour. )

“We’ve had an amazing run here, and then we hit a wall in 2013,” Titan CEO Joe Ouaknine said. “The biggest challenge we had was that dress shoes were dead and not selling. We decided to make some changes, and things are already looking better.”

After producing Gwen Stefani’s L.A.M.B line for about a decade, the firm is taking its relationship with the pop star further with the launch of a lower-priced line called Gx by Gwen Stefani.

The collection, which retails for around $100, launched exclusively on ShoeDazzle earlier this year and will roll out in de-

partment stores, including Nordstrom, and indepen-dent boutiques for spring ’15. Since its launch, the line has perfomed well on the ShoeDazzle site.

“Gx has performed very well for us and exceeded our expectations from a sales perspective,” said Tim Cal-lahan, SVP of merchandising for the site. “The collection has resonated well with our clients. Everything is acces-sibly priced yet on trend.”

Ouaknine echoed the importance of smart pricing for the collection in the $100 sweet spot. “[With Gx], we need to be more creative with the design so we can make the product as great as L.A.M.B. but available at a more accessible price,” Ouaknine said.

The executive, who has been working closely with the songstress on the product, said colorful high heels and wedges with intricate uppers and a few tomboy elements are on deck for spring. “Gwen is the coolest person I know. She’s patient, she’s engaging, and it’s her taste,” he said, adding that

Stefani’s exposure will increase further when she joins

on-screen singing competition “The Voice” as a judge in September.

For her part, Stefani told Footwear News that her decade-long partner-ship with Titan made the company a natural collaborator for the new line.

“They work hard to execute my aesthetic and work with us to make [product] that not only has style and attitude, but are also high quality and priced well,” the singer said. “Before we started working on Gx, they showed me they had the ability to source and manufacture really

impressive product.”In addition to the launch of Gx, Ti-

tan is also diving deeper into the com-fort market. The firm unveiled Olivia Childs, founded by Julie Johnson in 2013, at the FFANY show in June.

Of her decision to partner with Titan, Johnson said, “This enables me to make sure I have great pro-duction. I will have more access to materials and metals, and it opens me up to have much more creativity with the brand.”

The collection, priced around $150, features detailed wedges and elevated ballerina flats that sell at independent boutiques.

Ouaknine said com-fort brands can be more reliable, in terms of stay-ing power, than fashion labels that rely heavily on trends.

“I’ve always been jeal-ous of companies with a comfort business,” said Ouaknine, who dabbled in the business with Flogg. (After two years, Titan is ending its relationship with Flogg, whose designer, Carol de Leon, is moving forward with the brand on her own.)

Titan has also changed its relationship with Vivienne West-wood, still manufactur-

ing its shoes but no longer bound by a formal licensing relationship with the brand.

That move enabled Titan, who had already been working with Cynthia Vincent on production, to add the designer as a licensee, according to Ouaknine. For Vincent, she is excited to spend more time on what she’s most passionate about: design. “Lo-gistics took up too much time, and the product didn’t get my full attention,” said Vincent, who first launched her footwear division in 2006. “Now my [goals] are more tangible. I have a lot more support in bringing the shoes back to where I started.”

While on her own, Vincent was working with factories in the U.S., Italy and Portugal. Now Titan will move manufacturing to China and Mexico, which will enable the brand — sold at Bloomingdale’s, Saks and Neiman Marcus — to slightly lower its price points. Down the line, Vincent also plans to launch a contemporary line, CV, with the Titan family. P

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INSIDERON DEADLINE × Top Stories

Titan Takes On Three New Collections

Now my [goals] are more tangible. I have a lot more support in bringing the shoes back to where I started.” — Cynthia Vincent

Gwen Stefani with a Gx shoe

A spring ’15 lookfrom Olivia Childs

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INSIDER × ON DEADLINETop Stories

BY KRISTEN ALLEN

BERLIN — The mood among buyers and vendors at last week’s Bread & Butter was optimistic, though some were still cautious amid Europe’s continuing economic recovery e�orts.

The echo of the financial crisis remains, “but [the economy] is get-ting better, slowly improving even in bad markets like Spain — though people are careful,” said Swedish Hasbeens CEO Patric Blixt.

Being a “category leader” in wooden-soled shoes has helped the Swedish clog company grow despite economic anxieties, with classic styles remaining popular in the industry, Blixt said.

Standing testament to that suc-cess was Hamburg boutique co-

owner Dag Lübke, who was at the Swedish Hasbeens booth ordering shoes he described as “timeless” with a fashion-forward flair.

He typically stocks well-estab-lished brands such as Converse and Birkenstock at his store, Wohnge-schwisterchen, which specializes in Scandinavian children’s goods and women’s wear. But like other retail-ers, he emphasized the need for unique details to entice customers.

“The main problem is online competition, so we try to find brands and models that aren’t necessarily available there,” Lübke said.

His quest for originality was shared by buyers like Mandy Lietzmann, who was selecting “classic styles with something spe-cial” from Portuguese shoemaker

Nobrand for boutiques in the east-ern German state of Brandenburg.

She was on the hunt for loafers and low boots for both men and women, leaning toward details in-cluding playful yet subtle variations in material and texture. “It’s hard to get customers in the stores because of online sales, so styles have to really knock us out,” she said.

One sign of economic recovery is a renewed focus on craftsmanship, said Jakob Fuglsang, founder of Denmark-based vendor Shoe the Bear.

“People are willing to pay more for better quality, whereas a few years ago [the decision to pur-chase] was price-based,” he said.

Regardless of which styles they sought, buyers agreed on one major requirement: comfort. “People don’t want to destroy

their feet anymore,” Fuglsang said. To that end, slip-ons made a

strong showing at the trade fair, particularly for men’s shoes. Chunky, wearable heels and platform sandals with zigzag soles were also part of many women’s collections. For sneakers and loafers, muted metallics were big, as well as mixed textures and patterns such as flower motifs ranging from muted calico to exu-berant tropical prints.

Changes are also in store for the Bread & Butter fair itself, with organizers announcing its return to Barcelona in January 2015. It will, however, be back in the German capital that summer, followed by the event’s first foray into the Asian mar-ket with a Seoul, South Korea, show a few months later in September.

Bread & Butter Buyers Seek the Unique

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The UA SpeedForm™ Apollo destroys the rules of footwear construction. We craft

each shoe in a clothing factory to create the precision feel, fi t, and comfort you

know from Under Armour performance apparel. It’s the shoe we were born to make.

RUNNING SHOES CHANGE COLOR × BEST OF COUTURE

FN FEATURES

JULY 14, 2014 | | 11

Back to BlackThere’s nothing neutral about spring’s sophisticated all-noir running looks. Sporty styles get a jolt of energy from bright accents, like with these lightweight trainers for men and women by TOPO ATHLETIC.PHOTOGRAPHED BY THOMAS IANNACCONE

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Running loves its all-over brights, but for spring ’15, the

freshest men’s and women’s styles marry vivid color pops

with sophisticated steel tones.PHOTOGRAPHED BY THOMAS IANNACCONE

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JULY 14, 2014 | | 13

Running loves its all-over brights, but for spring ’15, the

freshest men’s and women’s styles marry vivid color pops

with sophisticated steel tones.PHOTOGRAPHED BY THOMAS IANNACCONE

Market Editor: Jennifer Ernst Beaudry

Fashion Editor: Mosha Lundström Halbert

Assistant Fashion Editor: Christian Allaire

From left: Women’s mesh-upper runner by FILA; women’s lightweight trainer from BROOKS; stability shoe for women from KARHU; women’s neutral running sneaker by SAUCONY; men’s stability model by KARHU; FILA’s mesh-upper running style for men; SAUCONY’s men’s neutral runner; men’s lightweight shoe by BROOKS.

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Direct from Paris, the fall ’14 couture presentations offered

a variety of fresh footwear statements. The offhand

pairing of handcrafted formal wear with flats — be they

sandals or brogues — pointed forward, while bold booties and pumps added a sharp touch to

all the frippery on display.

10 HAUTE COUTURE

PHOTOS BY GIOVANNI GIANNONI

1Chanel

7Bouchra Jarrar

8Elie Saab

6Giambattista Valli

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2Dior

4Viktor & Rolf

9Versace

5Schiaparelli

10Armani Privé

3Valentino

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ISSUE DATE 8/18 • CLOSE DATE 8/6

For more information on advertising, contact Sandi Mines, Vice President, Publisher, at 212.630.4872, or your FN salesperson.

FN PLATFORM August 18–20 WWD MAGIC August 18–20

Bonus Distribution:

Project LV August 18–20 The Atlanta Shoe Show August 23–25

The FN PLATFORM Issue IS COMING

JULY 14, 2014 | | 17

SPECIAL ATHLETIC SECTION

MARKETPLACE

Experiential races like the global Color Run attract athletes of all

ages and levels with upbeat marketing and a color story that

goes from head to foot — and all over everything else.

FOR MORE, SEE PAGE 19

Full Blast

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Hoka One One is poised to take flight.

The Richmond, Calif.-based running brand, known for its supersized sneakers and “Time to

Fly” tagline, has made quick progress since its

acquisition in 2012 by Goleta, Calif.-based Deckers Outdoor Corp. (the deal was completed last spring). It has expanded to around 750 doors today from 180 in 2013.

“We’re experiencing tremendous growth, in the neighborhood of 300 per-cent to 350 percent [in year-over-year sales],” said the brand’s president, Jim Van Dine. “We’re not going to continue at that pace indefinitely, but we see there is still lots of opportunity.”

To fuel the momentum, Van Dine transitioned at the beginning of the year to focusing full time on Hoka. Previously, he was also supervising sister brand Ahnu Footwear, which he founded, and Tsubo.

The running label has also added industry vets Mark Mastalir and Rob Purvy as VPs of marketing and product, respectively. And Hoka has hired 14 field service reps, who host clinics and demo runs at stores around the country.

Van Dine said those outreach efforts touch 400 to 500 runners a week. High-profile endorsement deals, such as a multiyear agreement inked in April with 2012 Olympic silver medalist Leo Manzano, have further raised Hoka’s profile.

The product line is evolving as well. Van Dine said that this month, Hoka will debut more lower-profile sneakers that should help the label reach new consumers. And for spring ’15, it will launch a line of shoes targeted to the sporting goods chan-nel, an entirely new distribution avenue for the

running brand. Here, Van Dine sounds

off on executing smart reinventions and winning

over the skeptics.

Are you moving away from Hoka One One’s quintessential “maximal” look with these new lower-profile styles?

JVD: We’ve categorized the business into two groups: “ultrasize,” which is the original shoes, and then “oversize,” the lower-profile shoes. The business is trending to be 55 percent oversized and 45 percent ultrasized. The oversized shoes are super plush, and they’re still larger than conventional shoe dimensions, but they’re a little closer to what has been normal. The response

from our athletes and wear testers has been good. We’re shipping in July, and that’s the shoe we think will sway the naysayers.

Who are those naysayers?JVD: Younger people on the show floors think of them as clown shoes, although

there’s less and less of that as time goes by. But [the sneakers] don’t fit neatly into historical categories. All our shoes are inherently stable, for example, so we have no “stability” shoes. That’s our biggest challenge, overcoming the rigid thinking that people have had about what constitutes a running shoe.

You’ve expanded your endorsement ros-ter beyond trail and ultrarunners. Has that affected your business?

JVD: For a lot of people, signing elite track and field athletes is changing their mindset. As we make racing shoes and spikes, [that product] is going to conform to normal conventions. When Deckers bought Hoka, the brand had a number of ultramarathon runners, and we’re still very com-mitted to that and have signed new ultrarunners. But we wanted to sign some elite track athletes as a demonstration that this isn’t just for old broken runners and ultramarathoners. Even superelites like Leo Manzano benefit from wearing the shoes. It’s a brand reset for a lot of people. And while most runners don’t really care about elite stars, younger athletes, like high school cross-country runners, look up to role models.

What moves are you making in terms of distribution?JVD: For spring ’15, we’re expanding the

product line dramatically so we can segment and have a whole [separate offering] for sporting goods and athletic specialty. Running specialty will have its own product, and we’re going into The Sports Authority, Finish Line and places like that. It’s too early to write orders, but they’ve indicated a willingness to take us on, and we’re excited but staying focused and committed.

How does moving into the broader sport-ing goods channel fit into your larger goals?

JVD: Deckers never acquired Hoka to be a niche brand. My main responsibility is to make sure the brand has no ceiling, that we can grow to whatever extent the market allows. And there are numerous athletic brands that surpass $1 billion in annual revenue, and I don’t think that’s an impossible target, although I’m not saying that would happen in the next few years.

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MARKETPLACE ATHLETIC ×

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On the Fly2Jim Van Dine aims to take Deckers’ running brand to

new heights. BY JENNIFER ERNST BEAUDRY

Jim Van Dine

The lower-profileClifton model

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MARKETPLACE × ATHLETICThey Are Wearing

Rainbow BrightsWith the tagline “The Happiest 5K on the Planet,” the global Color Run series puts the emphasis on fun, dousing participants in bright, biodegradable dye during the race and at its rockin’ finale. But runners at the latest event in Brooklyn, N.Y., cranked up the volume with wild outfits and brightly hued shoes to match. Standout styles from Nike, Asics and Skechers brought neon shades into play for athletes of all stripes.

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Robb FineganCo-owner, Fit Right NW, Portland, Ore.“One thing we’ve done this year is go after more corporate wellness business, and we’ll have a bigger focus on that. We have our own 5k training program that we’ve been pitching to the corpora-tions, but also doing health fairs and shoe fittings for [companies]. We’ve been getting our foot in the door and have just started some good relationships.”

Ed GriffinCo-owner, Fleet Feet Sports, Syracuse, N.Y.“We are putting a ton of focus on apparel sales — and women’s in particular. We have hired apparel specialists, tricked out our dress-ing rooms with curtains and love seats to make the experience more comfortable, spread the footwear try-on areas through-out the store to better integrate apparel and accessories to create a more even flow of traffic. And we are buying more lifestyle apparel from less-distributed quality brands to distinguish our offerings from big-box retailers.”

Kris HartnerOwner, Naperville Running Co., Naperville, Ill. “Our internal focus, since we added our second store [in February], is figuring out the inventory mix and the levels of product [we can carry]. When you have a store do-ing a fraction of the business, we can’t have all those SKUs, but you want the space to look good. Operationally, we’re working on getting that the way we need it to be.”

What Strategic Changes

Have You Made for

the Second Half of the

Year? BY JENNIFER ERNST BEAUDRY

MARKETPLACEATHLETIC × Burning Question

Mike CosentinoFounder, Big Peach Running Co., Atlanta

“We’ve made a six-figure, six- to nine-month investment in a new POS

system that connects the purchases and [information] of guests. Our

channel across the board — and Big Peach is no different — continues to

be challenged at customer retention. This will connect our databases with social media and shopping informa-

tion, and will greatly increase the likelihood that [customers] will

continue to shop at Big Peach for additional pairs and for other prod-

ucts. It’ll also make cash wraps not a necessity, so we’ll be much more

consumer and transaction friendly.”

Lee SilvermanPresident, JackRabbit Sports, New York“We’re putting a lot of effort into apparel. If we’re going to grow, it needs to be through apparel. We’re adjusting our store merchandising, replenishing, buying and sales techniques — there’s a lot to learn. Among running stores, we’re one of the best. But compared with people who sell apparel, we’re amateurs. We need to learn how to be that kind of store while also being a great running store.”

20 | | JULY 14, 2014

FN0714P20.indd 20 7/9/14 12:42 PM

INSIDER × UP FRONTUnder Armour

to his company long ago.“We are constantly burdened by people say-

ing, ‘Oh, no. They are the apparel guys. They don’t make shoes.’ I don’t know who made those rules of saying you’re an apparel brand or you’re a footwear brand,” the chairman and CEO said. “Everybody is generally making their things in generally the same places. But some are now di erentiating, like with SpeedForm and using a bra factory. The unique thing is that when we go to a new market, we have the ability to reintro-duce ourselves.”

To prove his point, Plank rattled o  numbers as easily as football stats.

In the U.S. market, wholesale distribution of footwear accounts for 11 to 13 percent of company sales, he said. The consumer appetite for footwear is even stronger in Under Armour stores, where shoes make up about 20 to 25 percent of sales. Meanwhile in China, 40 percent of sales are for footwear.

“We have to do a better job of retraining our traditional wholesale partners, who maybe said, ‘No, I tried your footwear three or four years ago,’” Plank said. “The company we were four years ago is so drastically di erent.”

One major di erence: Under Armour entered the acquisitions game for the first time in its 18-year history.

Last November, it agreed to pay $150 million for MapMyFitness Inc., maker of applications that let athletes record and share data from their workouts online using GPS technology.

Talking about his recent buy and sounding o  on its potential, Plank got a glint in his eyes. He has lately been a crusader-in-chief for good health.

“You can pull up your bank balance on your phone, you can pull up stock prices, you can find out how much gas and oil your car needs. But when you see a doctor every 12 or 18 months, they pull out a manila folder, ask how you feel, and you’re thinking, the most valuable asset I have in life is my health and you have no data on it whatsoever other than when I was here last?” Plank said.

“We also believe obesity and health is a mas-sive issue for the world. And the next big category is going to be proactive health and medicine. Right now we have no information about our bodies, unless you’re a diabetic drawing blood three times a day,” he added.

Plank and crew said they hope MapMyFitness will not only o er body analytics to users, but also provide the company with actionable insights.

For instance, of the 27 million registered app users — up from 20 million when Under Armour snagged it — the average person runs about 3.1 miles. To that end, company executives are discussing how to build the optimal shoe for that distance.

Additionally, top bosses have data on the times of day people run and the weather conditions they are most willing to head out in. The goal, they said, is to build product around that infor-mation.

“Running is the biggest place where you have to play as a company,” Plank said. “You have the most discerning consumer there who’s the most knowledgeable about footwear. If you can win there, you can win anywhere.”

Armour’s Plate(continued from page 6)

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FOOTWEAR NEWS 2014 EDITORIAL CALENDAR

JULY

ISSUE DATE SPACE CLOSE EDITORIAL FEATURE

7/7 6/26 Men’s Runway 7/14 7/2 Paris Couture, Running Athletic7/21 7/10 Outdoor Retailer Issue, In Person: Jim Zwiers • Distribution: Outdoor Retailer 7/28 7/17 FFaNY Pre-Show Issue • Distribution: FFaNY

8/4 7/24 FFaNY Show Issue • Distribution: FFaNY8/11 7/31 FN PLATFORM Pre-Show Issue • Distribution: FN PLATFORM8/18 8/6 FN SPY: VEGAS • Distribution: NSRA Conference, FN PLATFORM, WWDMAGIC, Project LV8/18 8/6 FN PLATFORM Show Issue, Comfort, Athletic / Outdoor Distribution: NSRA Conference, FN PLATFORM, WWDMAGIC, Project LV, The Atlanta Shoe Market8/25 8/14 The MICAM Show Issue, FN PLATFORM Show Wrap-Up, Flip Flops Distribution: The MICAM Show, Surf Expo

9/8 8/28 Foot Locker Milestone, Kids-Special Section, Materials & Components, Sustainability • Distribution: SMOTA, Children’s Great Event Shoe Show, NE & NW Materials Show9/15 9/4 China Issue • Distribution: The MICAM Shanghai, Fashion Access9/22 9/11 Must Buys Spring • Distribution: Sole Commerce

AUGUST

SEPTEMBER

Footwear News is the premier destination for the footwear industry’s classified and career listings.

OR FAX 212.779.7248DEADLINE: 2PM (ET) WEDNESDAY PRIOR TO

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FN IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A.

VOLUME 70, NO. 24. JULY 14, 2014. FN (ISSN 0162-914X) is published weekly (except for the first weeks in March and September, third weeks in May, November and December, fourth weeks in April and June, and fifth weeks in September and December) by Fairchild Fashion Media, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg, Jr., President; John W. Bellando, Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: Return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre., Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO FOOTWEAR NEWS, P.O. Box 6357, Harlan, IA 51593. FOR SUBSCRIPTION, ADDRESS CHANGES, ADJUSTMENTS OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6357, Harlan, LA 51593, call 866-963-7335, or email customer service at footwearnews@cdsfulfillment.com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 800-662-2275, option 7. Basic one-year subscription price: U.S. $72, Canadian $149; foreign $295. Regular single-copy cost $10. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes unde-liverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to FOOTWEAR NEWS, 750 Third Avenue, New York, NY 10017. For permission requests, please call 212-630-5656 or fax requests to 212-630-5883. For reprints, please email reprints@condenast.com or call Wright’s Media 877-652-5295. For reuse permissions, please email contentlicensing@condenast.com or call 800-897-8666. Visit us online at www.footwearnews.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. Occasionally we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 6357, Harlan, IA 51593 or call 866-963-7335. FOOTWEAR NEWS IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR ANY DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANU-SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK OR OTHER MATERIALS FOR CONSID -ERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY FOOTWEAR NEWS IN WRITING. MANUSCRIPTS, PHOTOGRAPHS AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

PH

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On the Cover: Photographed by THOMAS IANNACCONE

22 | | JULY 14, 2014

Embassy SweetsGianvito Rossi is having a major shoe moment — and luxury e-tailer Mytheresa wanted to celebrate it. The Munich-based online store held a party with the women’s designer last Monday at the Italian embassy in Paris. The festive night featured food, wine and Mytheresa founder Susanne Botschen, and even a few famous faces, among them Academy Award-winner Jared Leto.

FN0714P22.indd 22 7/10/14 3:05 PM07102014150628

JESSICA JAMS

FEBRUARY 2014

WHERE WILL THE BILLION-DOLLAR GIRL GO NEXT? JESSICA SIMPSON

TALKS ABOUT NEW LAUNCHES, HER LOVE FOR PLATFORMSAND WHY VINCE CAMUTO RULES.

VEGAS BUZZ

WITH VEGAS’ TOP CHEFS

WHAT ’S COOKING

PIECE OF BRITNEY

HOT SHOPS & COOL SIPSTHE TRENDS THAT HAVE BUYERS TALKING

HITTING THE STRIP WITH FERGIE

WHAT HAPPENS IN VEGAS...IS ALL HERE.

It’s a sure bet when you advertise in the FN SPY Vegas Issue—the insider’s guide to the hottest trends, people, and shoes in the footwear industry.

FOR MORE INFORMATION ON ADVERTISING, CONTACT SANDI MINES, VP, PUBLISHER, AT 212.630.4872, OR YOUR FN SALESPERSON

ISSUE DATE: 8/18/14 | AD CLOSE: 8/6/14

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