12 NPDFN MAY STUDY 29, 2006 FN BREAKING JUNE 30, 2008 NEWS

The Brands to Beat In an exclusive study, NPD Group tracks the top 10 footwear brands with the best sales in 10 major categories.

By JOCELYN ANDERSON from select department stores, national chains, athletic footwear retailers and specialty stores for the 12-month period ended April 2008. (High-end NEW YORK — The proven winners continue to deliver. brands, smaller boutique names and store-specific private labels were not A new, exclusive Footwear News/NPD Group study shows that, for the part of the study. NPD determined the category breakdown and brand mix. most part, the high-visibility labels — from to Nike to Ugg — are For a complete list of participating retailers, see page 15.) dominating key categories across the footwear market. It’s been a difficult time for the footwear industry, so it’s no surprise that “Sometimes the surprise is the absence of change,” said Marshal Cohen, most market segments have lost ground in the past year. In fact, the out- chief industry analyst for The NPD Group. “Brands don’t come and go, and door category was the only one that managed to eek out overall sales gains trends don’t disappear. They may rise and fall, but they don’t go away.” for the period. The study ranked the top 10 brands in 10 major footwear categories, in- “You can’t just rest the laurels of good sales,” said Cohen. “You have to cluding comfort, juniors’, contemporary, athletic-performance, outdoor and go out of your way to keep the product top of mind. And these numbers bear skate, among others. The lists were compiled by NPD from dollar sales data out that’s not what the industry did. Footwear is not going to sell itself.” 13

Women’s Brands nated by familiar names such as Dockers the right price points.” and Sperry Top-Sider. On the casual side, Sperry Top-Sider, Women’s Comfort Show Little Shift “Men are the least likely to brand shift Streetcars and Wolverine all saw im- Brands 2008 2007 Jones Apparel Group and Brown re- out of anybody,” said Cohen, who noted provements in their rankings. And though main on top of the women’s contemporary that children, women and teens are all Columbia appears stuck at No. 8, Steve Clarks England 1 1 market. Jones owns four of the bestsell- more likely to branch out with new brands. Stoutjesdyk, a buyer at Mieras Fam- Børn 2 3 Easy Spirit 3 4 ing brands on the list, while Brown con- Overall, the men’s category experienced a ily in Grand Rapids, Mich., said his Aerosoles 4 2 trols three, including Naturalizer, which 1 percent drop from last year, reaching store has done well with the brand. “Co- 5 5 once again ranked No. 1. $760 million in sales. lumbia has taken on strong and should be What’s What 6 7 Crocs 7 8 The category racked up $2.7 billon in good for next fall too,” he said. “They had a Ecco 8 6 sales for the 12-month period, a 2 per- great summer sandal season.” Sofft 9 10 cent decline from year-ago levels. (That Men’s Mainstream 10 9 includes all fashion footwear with a $60 Opportunities Abound Source: NPD Group/Retail Tracking Service price point or less.) Brands 2008 2007 “Naturalizer being available in Famous Foot- Dockers 1 1 For Women’s Comfort wear, one of the largest retailers, and across Sperry Top-Sider 2 3 The competition is heating up in the find a way to diversify its product to be department stores, chain stores and spe- Nunn Bush 3 2 women’s comfort market. Though the embraced by its core customer and con- Timberland 4 4 cialty stores allows them to top the list,” said Stacy Adams 5 5 category saw a 4 percent dip from last tinue to find new customers,” said Co- Cohen. “Does it mean they are the most popu- Giorgio Brutini 6 6 year, retailers report a surge in sales hen. “Not everybody wants to wear that lar? Not necessarily, but people are buying Wolverine 7 9 of comfort brands. The category pulled shoe.” Columbia 8 8 them, because they are the most available.” Streetcars 9 11 in $798 million in revenues for the Lozier said the brand is already finding Deer Stags 10 7 period. success at his shop with more diverse Source: NPD Group/Retail Tracking Service “Our bestsellers are not dress shoes,” styles. “They’re coming up with new Women’s said Palmer. “Comfort shoes are doing stuff. We couldn’t keep the wool ones in Contemporary well. People are doing a lot of walking, the store last winter. We totally sold out But while the big names aren’t chang- buying a better shoe and hoping it lasts of them.” Brands 2008 2007 ing, fresh styling is becoming increas- longer.” Naturalizer 1 1 ingly important for brands, according Crocs, which garnered a seventh place Little Change in Nine West 2 2 to men’s retailers. “Giorgio Brutini is ranking on the list, has been the fastest- LifeStride 3 3 the best,” said Mohammed Asad, owner growing comfort brand of the past three Men’s Comfort Bandolino 4 4 AK Anne Klein 5 6 of Shoe Palace in Pompano Beach, Fla. years. On the men’s side, comfort saw no per- Liz Claiborne 6 5 “They have nice, beautiful styles, and Cohen, however, isn’t sure the enthusi- centage change in sales from last year, White Mountain Footwear 7 7 they keep coming up with new ones at asm for the brand will last. “Crocs must holding steady at $341 million in ▲ Franco Sarto 8 9 Mootsies Tootsies 9 10 Nina Footwear 10 11 Source: NPD Group/Retail Tracking Service

Others said the brand has managed to re- invent itself recently. Hawley Lane Shoes in Shelton, Norwalk and Stamford, Conn., will begin stocking Naturalizer in the fall. “Naturalizer is changing,” said GM Bobby Lozier. “They have a lot of nice, sexy shoes with good price points.” At Alec’s Shoes in Nashua, N.H., buyer Wendell Palmer said the dress shoe busi- ness has slowed, and his shop is focusing more on casual brands. As a result, sales of brands such as Liz Claiborne have gone down. However, Franco Sarto is an excep- tion. “They are hitting the younger, profes- sional woman,” said Palmer. Traditional Brands Lead Men’s Mainstream Most male consumers are creatures of habit, so it’s no surprise that the men’s mainstream market continues to be domi- 14 NPDFN MAY STUDY 29, 2006 FN BREAKING JUNE 30, 2008 NEWS

revenue. But in this category, smaller men’s side, I still have a whole rack full. Men’s Comfort names took advantage of a growing mar- Few guys wear them.” Men’s Juniors ket and worked their way up the list. Brands 2008 2007 “Emerging brands put comfort into the Brands 2008 2007 Juniors Continue message in a bigger, better way, and it Skechers 1 1 Rockport 1 1 Steve Madden 2 2 Ecco 2 2 resonated with consumers,” said Cohen. To Favor Style Dr. Martens 3 4 Clarks England 3 4 On the other hand, an established name Trendy is the name of the game in the Dr. Scholl’s 4 5 Børn 4 3 is helping to keep some companies women’s juniors’ category. Despite a 2 per- GBX 5 3 Crocs 5 5 competitive. “Clarks and Hush Puppies are cent slide from last year, the segment took Lugz 6 6 Merrell 6 6 Gotcha Int’L 7 8 Margaritaville 7 8 good, but I would rank them after Rock- in $949 million. (Both juniors’ categories Rocket Dog 8 11 Hush Puppies 8 7 port,” said Asad. “Their styles are gener- were determined by price points and NPD Ocean Pacific 9 9 Birkenstock 9 9 ally good for our older customer base.” brand lists.) Unlisted by Kenneth Cole 10 12 Sebago 10 11 In men’s, Crocs remained in the No. 5 “Style is No. 1 [in juniors’ shoes],” said Source: NPD Group/Retail Tracking Service Source: NPD Group/Retail Tracking Service spot for another year. “They are doing better in women’s,” said Lozier. “On the in Chico, Calif. “No guy is going to buy Women’s Juniors some green polka-dot boots, no matter Brands 2008 2007 how comfortable they are.” And just like in women’s juniors’, Skechers Skechers 1 2 Steve Madden 2 1 and Steve Madden ranked highest in the Mudd Footwear 3 3 category. Still, retailers have noticed the Rampage 4 4 dip in sales. Rocket Dog 5 5 Chinese Laundry 6 10 “We carry Skechers for men, women and Unlisted by Kenneth Cole 7 8 kids. Kids’ [styles] dominate all the time. Report 8 9 Men’s is slow,” said Lozier. “We are trying Mia 9 6 Dr. Scholl’s 10 15 to get the tween and twentysomethings to Source: NPD Group/Retail Tracking Service buy them.” Stuelpnagel has noticed a similar decline in Steve Madden for men, while the women’s Cohen. “But it has to be affordable style. side does much better. He said other men’s So when Skechers and Steve Madden are brands do well in his small college town. under $100, that becomes acceptable “There’s still a big following for Dr. Mar- to the parent. [These brands have] rec- tens,” said Stuelpnagel. “And Dr. Scholl’s ognized who their core customer is, and have come back somewhat. They have they’ve said, ‘We’re going to dominate in captured a certain look this year, which is these categories.’” doing OK.” Skechers took the top spot this year, knocking Steve Madden to No. 2. Mudd Athletic Shoes Footwear, Rampage and Rockdog rounded out the top five, as they did last year. Ring Up $7.2 Billion “Teen shoes do very well,” said Palmer, Although overall performance-athletic calling out Mudd, Report, Rocket Dog, Steve sales were down 3 percent in the period, Madden and Unlisted by Kenneth Cole as bestsellers in his store. Performance Fickle Male Shoppers Brands 2008 2007

Push Juniors’ Down Nike 1 1 Though this category saw a 16 percent Brand Jordan 2 3 plunge from last year, for a total of $302 3 2 million in sales, the top 10 brands all held 4 5 5 4 steady or received bumps in position, with Asics 6 6 the exception of GBX, which tumbled two 7 7 spots. Again, it’s all a matter of style, ac- 8 9 K-Swiss 9 8 cording to store owners. Skechers 10 10 “The look is everything,” said Rick Source: NPD Group/Retail Tracking Service Stuelpnagel, owner of Heel and Sole Shoes 15

the category is still ringing up huge sales Hawley Lanes Shoes will add an Ugg But his shop sees its share of serious — to the tune of $7.2 billion. Low Performance shop in its Shelton, Conn., location this skaters too. He ranks Nike SB as the store’s Athletic giant Nike topped this list for year, said Lozier. top brand. Nike limits distribution of those another year, thanks to a combination of Brands 2008 2007 Stoutjesdyk said his store in Grand shoes to specialty skate shops, which fashion-forward styles and tech-savvy Skechers 1 1 Rapids still has a hard time meeting the may also explain why the brand ranks No. product. Puma 2 2 demand. “We’ve got a list started for fall 4, below DC Shoes, which is popular on Outside of Nike, some retailers said 3 4 already for when they come in,” he said. Nike 4 5 more specialized performance brands K-Swiss 5 3 “We’ve got them scheduled as they come are doing well. Coach 6 10 in. They seem to catch on even stronger Skateboard “Nike is very fashionable and marketed Adidas 7 8 every year.” Reebok 8 6 extremely well,” said Jovan Zow, man- The disappearance of some of Ugg’s Brands 2008 2007 9 9 ager of Super Runners Shop in New York New Balance 10 19 competition has also fueled the brand’s Heelys 1 1 City. “They make good shoes, but more Source: NPD Group/Retail Tracking Service 2 2 serious runners tend to stray away from DC Shoes 3 3 Nike.” Nike 4 6 Outdoor Adidas 5 4 Asics is considered a top brand for run- we were selling 400,000 a year. It may Etnies 6 5 ners; however, the brand’s repeat rank- be more now.” Brands 2008 2007 World Industries 7 10 ing in sixth place might be explained by Converse 8 8 Ugg 1 2 Sneaux 9 7 a lack of new product offerings. “The only Outdoor Ranks Merrell 2 3 Skechers 10 9 problem with Asics is they really haven’t Timberland 3 1 Source: NPD Group/Retail Tracking Service made any drastic changes,” said Mike Strongest Overall Keen 4 5 Nike 5 4 Turner, manager of Swag’s Sport Shoes in This fast-growing outdoor category saw Adidas 6 6 Louisville, Ky. an 11 percent rise from last year, reach- Columbia 7 7 MTV, and Vans, a classic . Retailers remain optimistic about the ing $1 billion in sales in 2008. Skechers 8 8 One brand to watch in this category is New Balance 9 15 future of this category. “Even with gas Ugg is fueling the majority of the results Vasque 10 10 Converse, which now offers a skate pro- prices as high as they are, our business at retail, according to storeowners. The Source: NPD Group/Retail Tracking Service gram. MIA Skate Shop will start carrying is still doing very well because people brand, famous for its shearling boots, Converse going forward, said Galland. still want to get out and try to keep in moved up to first from the No. 2 spot last And though the hardcore skateboarders shape, try to keep the weight off, keep year. (The category includes all-weather success this year, said Cohen. “This past aren’t wearing Heelys, the brand hasn’t their heart healthy,” said Turner. “They shoes, such as snow boots.) year, we didn’t see the $19.99 versions lost momentum among the youngest need to make sure they have the appro- “We buy huge [amounts of] Uggs every of imitation-shearling boots in Target or consumers, who helped it grab the top priate shoes and apparel to do that.” year,” said Lozier. “We’re selling them now, Payless as we had before,” he said. “The spot on the list again this year. Still, and it’s summertime. I don’t think that fad trend waned a bit, but it didn’t wane as some retailers have backed away from Low Performance is going to go away for a long time.” much as everybody expected.” the product. “We don’t carry them here Outdoor brands also are working to because the owner and the kids’ shoe Sees Some Shifts achieve year-round status, creating new manager are afraid somebody will get While not as hot as it once was, the low- styles to attract more consumers dur- hurt on them, and they don’t want to be performance athletic category is still ing warm-weather months. For instance, liable,” said Lozier. delivering healthy results. The market Ugg makes flip-flops and Keen offers posted a sales dip of 7 percent for the ballerina flats. period, but overall retail sales totaled $1.8 billion. Fashion and Function Retail Participants: Department stores Names such as Skechers, Puma and include Macy’s East, Macy’s West, Converse continue to lead the category. Fare Well in Skate Macy’s Central, Macy’s Florida, Bloom- However, the biggest mover on the list The category remains ingdale’s, Marshall Fields, Famous Barr, was New Balance, up nine spots. Retail- hard to peg, as styles tend to vastly dif- Nordstrom, Lord & Taylor, Dillard’s, ers across the board extol the virtues of fer by region, according Cohen. “I look Gottchalk’s, Belk and Bon Ton Stores. the brand, mostly for its extensive selec- at the national number with a different National chains include Kohl’s, JCPenney, tion of sizes and widths. set of eyes than I would with any of the Sears and Mervyn’s California. Shoe chains The huge jump in sales reported by other categories,” he said. include DSW, Famous Footwear, Rack Room the national chains has been seen by With $459 million in sales, down 5 per- and Shoe Carnival. Athletic specialty and independent retailers, as well. At Hawley cent from last year, the category contin- sporting goods stores include Foot Locker, Lanes Shoes in Connecticut, where there ues to be in high demand among trend- Lady Foot Locker, Kids Foot Locker, Footac- is a New Balance shop, Lozier said sales savvy consumers. tion, Champs, Finish Line, The Sports Au- of the brand are up 25 percent. “A majority of our shoes never see a thority, REI, Modell’s, MC Sports, G.I. Joe’s, “New Balance is a very good brand,” skateboard,” said Frank Galland, manag- Schuylkill Valley, Hibbett’s, Dunham’s, said Swag Sports’ Turner. “At one point er of MIA Skate Shop in Miami Beach, Fla. Sports Chalet and Olympia.