Boat Shoes

Sperry could be a $ 1 billion shoe brand, new owner says

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Wolverine World Wide Inc. says the Sperry Top-Sider shoe line it just purchased may become its first $1 billion brand by using overseas growth to triple sales.</p><p>Sperry, one of the brands Wolverine will take control of from Topeka-based Collective Brands Inc., had $330 million in revenue last year, about 4 percent of which came from overseas. Wolverine generates about 40 percent of its sales outside the U.S. and will use the same network of distributors and franchises to spread the brand known for boat shoes, Chief Executive Blake Krueger said.</p><p>&#x201C;We see Sperry as a $1 billion lifestyle brand,&#x201D; Krueger said Tuesday. &#x201C;It has plenty of opportunities for growth in the U.S., and around the world it&#x2019;s virtually untapped.&#x201D;</p><p>Wolverine, along with partners Golden Gate Capital and Blum Capital Partners, agreed to buy Collective Brands on May 1 and split up the company&#x2019;s businesses in a transaction valued at about $2 billion, including debt. Wolverine will own the Sperry, Saucony, Stride Rite and Keds brands. The private-equity firms will take control of the Payless ShoeSource stores.</p><p>The other brands also have room for overseas expansion, said Krueger, who declined to say when Sperry may reach $1 billion. The Stride Rite children&#x2019;s line generates 4 percent of its $300 million in annual sales outside the U.S. Saucony running shoes get 23 percent of their $280 million in sales overseas, and Keds generates 20 percent of its $80 million in revenue abroad.</p><p>Part of the plan for expanding Sperry, which increased sales more than 50 percent last year, will be expanding its 18 retail locations in the U.S. and overseas. Wolverine will add accessories and apparel to Sperry&#x2019;s offerings to broaden the brand&#x2019;s appeal, Krueger said. The move outside the U.S. will come quickly, said Krueger, who referenced Cushe, cited as an example of a brand Wolverine purchased in 2009 and has expanded to more than 90 countries in three years.</p><p>&#x201C;We can do Sperry faster and with a larger footprint,&#x201D; Krueger said. &#x201C;We are able to plug and play a brand very quickly into our international distribution network.&#x201D;</p><p>.

Source: Kansas City Star