SAUCONY INC

SAUCONY INC

Previous company name
HYDE ATHLETIC INDUSTRIES INC
Name change date
7/3/1992
Company Overview
Saucony, Inc is an American company engaged in the manufacture and distribution of a wide range of footwear for men and women including running shoes, shoes for walking, cross-training, and hiking shoes. The company, with headquarters located in Massachusetts, was founded in 1906.
Saucony, Inc is a leading global supplier of performance athletic footwear, casual footwear, apparel, and accessories with its widely recognized brands Saucony, Saucony Originals, Hind, and Spot-bilt. The company is best known for its performance running shoes under the Saucony name. Saucony’s products are sold in some 15 Saucony outlet stores located in the United States and Canada and through sporting goods and shoe retailers in more than 50 countries worldwide.
In 2005, Saucony was acquired by Stride Rite Corporation, a company that markets the leading brand of high-quality lifestyle and athletic shoes for children and adults which are sold under well-known brand names, including Stride Rite, Keds, PRO-Keds, Saucony, Sperry Top-Sider, Tommy Hilfiger and Grasshoppers.
Business Summary
Saucony, Inc. (Saucony) designs, develops and markets performance-oriented athletic footwear, athletic apparel and casual leather footwear. The Company operates in two segments: the Saucony segment and the Other Products segment. The Saucony segment consists of Saucony technical and Originals footwear, and Saucony apparel. The Other Products segment consists of Hind athletic apparel and Spot-bilt shoes for coaches and officials, cleated football and multi-purpose footwear, and casual leather walking and workplace footwear, together with sales of Saucony’s and other companies’ products at its 21 factory outlet stores. Saucony’s products include technical running, walking, cross training and outdoor trail shoes, and athletic apparel that are sold under the Saucony brand name, and technical running shoe models from the early 1980’s, which Saucony reintroduced in 1998 as Saucony Originals, its classic footwear.
Description and history
Saucony, Inc. (Saucony) designs, develops and markets performance-oriented athletic footwear, athletic apparel and casual leather footwear. The Company operates in two segments: the Saucony segment and the Other Products segment. The Saucony segment consists of Saucony technical and Originals footwear, and Saucony apparel. The Other Products segment consists of Hind athletic apparel and Spot-bilt shoes for coaches and officials, cleated football and multi-purpose footwear, and casual leather walking and workplace footwear, together with sales of Saucony’s and other companies’ products at its 21 factory outlet stores.

The Company’s products include technical running, walking, cross training and outdoor trail shoe,s and athletic apparel that are sold under the Saucony brand name, and technical running shoe models from the early 1980’s, which Saucony reintroduced in 1998 as Saucony Originals, its classic footwear. During the year ended December 31, 2004, the Saucony segment accounted for approximately 85% of the Company’s consolidated net sales. The Other Products segment accounted for 15% of Saucony’s consolidated net sales during 2004. The Company’s products are sold in the United States at more than 5,500 retail locations and at its 19 factory outlet stores. Outside the United States, Saucony’s products are sold in 53 countries through 24 independent distributors located throughout the world, and through its subsidiaries located in Canada, The Netherlands and the United Kingdom, and at its two factory outlet stores in Canada.

Footwear

Saucony sells performance running, walking and outdoor trail shoes for athletes under the Saucony brand name. A majority of sales are in the running shoe category. The Company has several different products within each Saucony brand category. These products have different designs and features, resulting in different cushioning, stability, support characteristics and prices.

The Company designs and markets separate lines for men and women within the technical footwear categories. It markets and sells technical footwear to athletes, who have a high-participation rate in their sport of choice. During 2004, Saucony introduced several new shoes targeted at the mid-priced running footwear segment, known as the cross-over category. Most of the Company’s technical running and other athletic shoes incorporate either its Ground Reaction Inertia Device (GRID) system, or its Custom Ride Management technology. Saucony’s GRID system is a midsole system that employs molded strings engineered to create a feeling similar to that of the sweet spot of a tennis racquet. Custom Ride Management technology allows the Company to tailor shoes to the individual characteristics of a runner, including height, weight, foot size, foot types and gait cycles. It allows athletes to select a level of cushioning or stability based on their need or preferences. The Company designs its Saucony technical cross training, women’s walking and outdoor technical trail shoes with the same performance features, and fit and feel characteristics as are found in Saucony technical running shoes. Technical footwear, inclusive of full margin and closeout technical footwear, accounted for approximately 72% of Saucony’s consolidated net sales during 2004.

Saucony’s shoes under the name Originals are designed to appeal to younger consumers, who do not generally wear them for athletic purposes. The Company offers these shoes in a variety of styles with over 100 combinations of colors and materials. Saucony’s initial Originals offering consisted of two models, the Jazz Originals and the Shadow Originals. The Company then expanded the Originals product line to include color and material variations on its initial Originals, and also introduced children’s models. During 2004, it introduced additional Originals products, including contemporary-styled reintroductions of its technical running shoe models from the 1980’s, and other casual footwear designed for the 12 to 25-year-old footwear consumer. Originals footwear, inclusive of full margin and closeout originals footwear, accounted for approximately 12% of the Saucony’s consolidated net sales during 2004. The Company also sells shoes for coaches and officials, cleated football and multi-purpose footwear, casual leather walking and workplace footwear under the Spot-bilt brand name through similar distribution channels as its Saucony brand shoes.

Athletic Apparel

The Company sells a line of technical apparel under the Hind brand name for use in a variety of sports, including running, fitness and bicycling. Most of Saucony’s Hind products incorporate its moisture management technology that transfers moisture away from the wearer’s skin to enhance comfort. During 2004, the Company introduced a line of performance sport bras, designed for women’s fitness activities. Saucony also markets athletic apparel internationally, under the Saucony label. It targets Saucony apparel line at the mainstream running consumer.

Saucony competes with Nike, Asics, Brooks, Adidas and Sugoi.

Business Line
Engaged in the manufacture and distribution of a wide range of footwear for men and women including running shoes, shoes for walking, cross-training, and hiking shoes
Subsidiary
COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP GMBH
Advisor
DELOITTE & TOUCHE LLP
IPO date
1/29/1999
US SIC Code
3149
Company Address
Centennial Industrial Park
13, Centennial Drive
City province or state postal code
01960, PEABODY, MA
Phone: +1 978 532 9000
Fax: +1 978 532 4956
Country address: UNITED STATES OF AMERICA
Website url: www.sauconyinc.com