Fleet Feet, Inc. recorded 22% growth in overall sales in 2005, surpassing $52 million in revenue, compared to $43 million in 2004. Comparative stores sales in 2005 were up 14% on top of the 12% increase posted in 2004. Fourth quarter comps were up in the mid-teens. The franchisor now boasts 67 stores in 32 states, opening six stores in the first half of the year on top of the twelve stores opened in 2004. They expect to see one store (Santa Monica) close in 2006.

Much of the growth came from outside of its historically strong footwear business, with the Bra FIT program in particular adding a lot of energy to the women’s business. Based on the success of that program, and the brand partnership program with Moving Comfort and Champion, it was probably no surprise that Moving Comfort walked away with the Apparel Vendor of the Year award this year.

The Personal FIT Process is also paying big dividends in accessories. Superfeet reportedly sold 45,000 pair of insoles in 2005, adding another $35 at a 60%+ margin to every sale.

The retailer also pointed to its brand partnership program as a success. New Balance, which has been the lone footwear brand participating, saw its share at Fleet Feet come in around 50% higher than its national average in running specialty. Brooks has joined the program for 2006.
Looking ahead, Fleet Feet expects to have 100 stores by the end of 2008, with seven to nine stores planned for 2006 and 10 to 12 more in 2007.

Company CEO Tom Raynor said that Fleet Feet is projecting 15% annual growth over the same period.

Jeff Phillips, president of Fleet Feet, Inc., said that the newer stores really contributed to the comp store sales gain for the year, but stores opened before 1993 still averaged a 9% comp sales gain for the year, about the same as the stores opened between 1993 and 1998.
Stores opened between 1998 and 2000 saw comps increase more than 20% on average, while the stores that opened since 2000 posted average comp store sales increases that exceeded 35% versus the previous year.

Asics was the fastest growing footwear brand in 2005, with sales jumping 45.4% for the year. Mizuno was second in footwear with sales increasing 30.3%, while Brooks rounded out the top three with a 27.1% increase for the year. New Balance sales were up 13.1% on the strength of their brand partnership program, while Saucony was flat and Nike (-15.3%) and adidas (-11.5%) both declined for the year. Raynor said Pearl Izumi got distribution but didn’t sell through. He sees opportunity for Fila, Montrail and other niche brands going forward.

In apparel, Asics also took home the prize for the biggest percentage increase, jumping 64.2% in 2005. Moving Comfort posted a 57.6% increase to take the second spot and Brooks delivered a 40.2% increase to round out the top three. Nike still has life here in apparel, growing 22.1% for the year. Hind was up 5.4% and Sugoi posted a 5.3% increase. adidas was down 16.8% in apparel sales for the year.