|
Fila flies off the shelves
|
 |
October 11, 1996: 7:39 p.m. ET
Shoe making also-ran finds itself running up profits
From Correspondent Sean Callebs
|
NEW YORK (CNNfn) - In the multibillion-dollar business of selling sneakers, Nike is unchallenged as king of the hill, while Reebok is a solid second.
But there's a new No. 3 in the race -- Fila.
After spending nearly a decade as an also-ran in the athletic-footwear market, Fila sneakers have caught fire.
The shoe maker, which placed just eighth in U.S. footwear sales three years ago, now leads the pack of Nike and Reebok wannabees.
"It has been an exciting ride," said Howe Burch, who handles Fila's advertising and communications efforts. "The company sales have virtually tripled over the last three years."
Fila sold more than $500 million worth of sneakers and athletic wear last year.
And with orders up another 40 percent this year, Wall Street is certainly taking notice.
In roughly 12 months, Fila stock has soared nearly 400 percent from the low 20s to 90-3/8 as of Friday.
Much of the credit goes to Fila's best salesman, basketball superstar Grant Hill of the Detroit Pistons. (852K QuickTime movie)
Hill helped take Fila, a brand previously associated with European tennis stars, to a crucial market -- urban African-American youths.
That market is a crucible for the hottest fashion trends, according to analyst Donny Deutsch. (162K WAV) or (162K AIFF)
Fila maintains that it didn't consciously go after the inner-city market.
Rather, Fila's Burch believes the firm just hit a nerve with consumers.
"For us, fashion leads to function," he said. "We are an apparel company that evolved into footwear. Our competitors are footwear that evolved into apparel."
But hurdles remain if Fila hopes to gain further in the shoe-selling race.
For all of its recent successes, the company only has about 6 percent of the U.S. market, while Reebok and Nike hold 50 percent between them.
Experts say that if Fila is going to make a dent in that lead, the firm might have to change its image.
Market watchers say that Fila is still best-known for its stylish designs, while Nike and Reebok have reputations for both style and athletic performance.
Analysts say that for Fila to move forward, it must win the hearts and minds not only of basketball superstars like Hill -- but also of average weekend joggers.
|
|
|
|
|
 |
|
