Collective Brands, Inc. gave the market a peek inside
its business model at its recent shareholder meeting, providing investors,
analysts and the media a pretty comprehensive look at a model that merges once
divergent wholesale, retail and licensing businesses into a cohesive new
structure that leverages the strengths of each area of business, maximizes
revenues, and leverages infrastructure and economies of scale in the supply
chain.




CBI was formed last month after Payless Corporation
completed its acquisition of The Stride Rite Corporation and its iconic brands,
Stride Rite, Keds, Sperry Top-Sider, Saucony and Tommy Hilfiger Footwear, and
merged the company into the new entity that also includes Collective Licensing
International, which Payless acquired earlier this year.


Last week,
Sports
Executive Weekly
 outlined the company’s strategies for the
consolidated company, as well as gave a look inside the Stride Rite
Children’s business and the Keds business.  This week,
SEW
takes a look at the Sperry Top-Sider
and Saucony businesses and also reviews the outlined objectives of the
Collective Licensing business.


Craig Reingold, president of Sperry Top-Sider, said
that the brand has experienced “solid growth” over the past three
years, delivering $88 million in sales in 2006 after generating annualized
sales growth of over 20% in each of the last two years.  The growth rate for
fiscal 2007 is forecast to be nearly 30%.  One key strategic initiative driving
sales is the move to build more back half business, which now represents 43% of
the annual business, up from 39% last year.


“In the past, our retailers reduced our display
presence during the Fall and Winter season,” said Reingold. “We've
developed brand appropriate and trend right Fall products that have helped us
improve our Spring/Fall ratio and now our Fall business has some
momentum…”


Mr. Reingold revealed that the gender ratio for the
brand is approximately three-to-one, men's to women's.  The women's business
has apparently increased from 13% of the total Sperry business to over 30% this
year.  The Women's business grew from $7.7 million to over $34.5 million in
2007 and was described as “multi-generational,” with strength
coming from canvas, casuals and the nautical sport categories in the first half
of 2007.


The brand is focusing resources on what they refer to
as the “adventurer consumer,” men and women ages 18 to 40.   They
define this consumer as being more active and outdoor-oriented and as shopping
accounts such as Dick’s Sporting Goods, Bass Pro Shops, Gander Mountain
and West Marine; areas where they have seen “significant growth”
over the past few years.  Reingold also said the brand is resonating with the
younger Gen Y consumer through retailers such as Journeys, Finish Line and J.
Crew.


About 95% of the Sperry Top-Sider business is
generated in the
U.S.
 
Reingold said that international growth in 2007 is projected to exceed 25% and
they were having initial success in markets such as
Canada,

Australia,


Italy and
Latin America.


“We want to expand the brand internationally to
become a global nautical lifestyle brand,” said Reingold.


Mr. Reingold said that apparel was also an important
part of their long-term growth strategy for the Sperry Top-Sider brand, with a
vision to “become the global nautical lifestyle brand for consumers who
aspire to enjoy life in, on, and around the water.”