NA APPAREL MERCHANDISING F/H’12 GEO INPUT: FLEECE, OUTERWEAR & NIKE PRO 1/27/11.

NA APPAREL

MERCHANDISING

F/H’12 GEO INPUT: FLEECE, OUTERWEAR & NIKE PRO1/27/11

Ath Departm

entNSW

Young Athletes

Basketball

Ath Training

Women's

Training

OtherTotal $-

$50.0

$100.0

$150.0

$200.0

$250.0

$61.0

$12.0

$93.6

$64.2

$10.5 $13.9

$104.8

Hol 11Fall 11

% = inc./dec. from PY

30 %

30.3%

105 %11.7%

117% 10 %43 %

FLEECE - USA FA/HO11 * REVENUE IN MILLIONS VS LY

114 %

Source: NA Demand Plan

FLEECE - USA FA/HO11 *Breakdown by Category

Ath DeptNSW

Young Athletes

Basketball

Ath Training

Women's T

ROther

Total $-

$50.0

$100.0

$150.0

$200.0

$250.0

93.374 95.114

26.271 26.271

$8.3 $17.5 $9.4

$52.3

14.709

17.804

OtherKO FleeceSquadClassic

$24.1

Source: NA Demand Plan

FLEECE-NA SWOT

STRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

• Total Fleece market is $1.5B; -2.7% to LY• Nike and Adidas tied for 2nd place in market share after Private Label at

7%, and lost market share (LY Nike was 8% and Adi 8.2%)• All top brands lost AUR as compared to LY• The less than $55 price point segment was the only one that gained

market share

• Columbia at 3.9% market share grew (was 2.3% LY)• UA at 3% market share also grew (was 1.4% LY)• Internal margin on core basic styles does not allow for fully profitable

realization of the “badge and borrow” strategy

Market Share info from NPD (Jul 2010-Nov 2010)

• M/W Performance Fleece (KO Franchise across categories): offer more novelty and color blocking in varied silhouettes – this segment is growing faster than cotton fleece. MAT could land another 6-8 styles for Fall 12, as example.

• UA is offering a broader assortment/color spectrum in Men’s and Women’s Performance Fleece than Nike currently is…opportunity to stop UA’s growth in this segment

• Spring opportunity in lighter weight (newness vs FA/HO) core and novelty fleece.

• Early indicators of Fall 11 AD pricing strategy (pull back margin from retailer) is strong – revenue will be flat while growing margin $

• Price/Value of Fall/Hol 11 NSW Embellished fleece was strong• Performance fleece overall drove classification growth for Fall

11 bookings (MAT / WT more than doubled their Fall 10 bookings; Sportswear is flat)

Gap $49.5089% Cotton, 11% Polyester

Champion $35 255 gram

80% Cotton, 20% PolyesterDouble Dry wicking technology

American Apparel $4970% Cotton, 30% Polyester

Metal zipper

Nike 6.0 $45300 gram

80% Cotton, 20% Polyester

The North Face Hoody $50 Cotton/Polyester

Adidas $49.9970% Cotton, 30%

Polyester

Russell $35.99255 gram

50% Polyester, 50% Cotton Dri-Power® quick-drying

NA Fleece Hoody Pricing

Nike Classic Hoody $50300 gram


Champion $35 340 gram

82% cotton/18% polyester

American Apparel $3850% Cotton, 50% Polyester

The North Face $50 80% cotton/20% polyester

Russell $25255 gram

50% Polyester, 50% Cotton Dri-Power® quick-drying

NA Fleece Bottoms Pricing

Adidas$3570% Cotton, 30% Polyester

Nike Classic Pant $40300 gram


Puma $45 80% cotton/20% polyester

Nike Pro – USA FA/HO11 * REVENUE IN MILLIONS VS LY

Field Sports

Soccer

Young Athletes

M Training

Basketball

W Training

Total $-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$31.0 $26.9

$66.8

$30.1 $26.9

$62.6

Hol 11Fall 11

+57 % -45%

75%

70%


26%

*Exclusive of NTS product that includes Pro and College Football & Baseball .

79%

72%

Nike Pro – USA FA/HO11 Breakdown by Category

Field Sports

Soccer

Young Athletes

Ath Training

Basketball

W Training

Total $-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$18.25

$-

$18.98

$39.43

$38.5 $34.9

$76.0

$5.67

$4.40

Core

Compression

Hyper Cool

Hyper Warm

Hyper Strong

*Exclusive of NTS product that includes Pro and College Football & Baseball .

NIKE PRO COMBAT-NA SWOT STRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

•We have become the fitted provider within the market recognizing the trend from compression early•Hypercool has proven that we can sell higher price points given adequate technology•Hyperstrong has provided the sharp point for all of NPC, driving innovation primarily through football•The switch from Nike Pro to Nike Pro Combat has created equity within this silo•Men’s Rolling 12 Month Market Share ($) - Nike: 26.3%, +8.9 points to LY (all-time high) / UA: 59.5%, -7.1 points to LY (all-time low)•W’s Rolling 12 Month Market Share ($) - Nike: 31.8%, +8.3 points to LY / UA: 36.5%, -6.7 points to LYFemale Consumer validation: Positive market share gains year round including cold weather months (took over as #1 baselayer brand Nov 10)•Creation of the Last Mile program

•UA continues to dominate cold weather with mocks and tights; they own the consumer during this time period•NPC uses the same design for both fitted and compression making it an either or and not an incremental for retailers•Capacity issues: we are having a hard time satisfying demand•Low margins, especially on fitted and when product is sourced in Asia due to over capacity in Latin America•Product benefits: we do a poor job of communicating to the consumer why they need NPC both in-store and on hang-tags•Lack of newness and style innovation in women’s •AUR: Nike continues to be a discounted brand, AUR well below UA

• Continue to lead in innovation; UA does not have the capability at this point• Tell the consumer why our product is better through in-store communication• Focus on youth: UA dominates in kids; higher price to convert them in high school

than capturing them early• All out Cold Weather attack: we need to make significant strides here to ever

knock out UA• Increase number of styles / colors on AA and demand pull to help delivery• Inclusion of women’s business into last mile program• Opportunity to grow business by layering up better/best Pro offerings

•Raw material increases and low margin styles: we cannot afford to out-price UA given our current market share•UA is retrenching based on our gains: expect better product and in-store coming soon•SP12 updates and price increases on Women’s Pro core silo

Key Styles

TARGETED PRODUCT FOCUS AT UA’S FOUNDATION

FA/HO’10 SP/SU’11

Competitive Attack

Tech Tee ($20)

Flex Short ($25)

Comp S/S Top ($25)

6” Comp Short ($25)


Tech Tee ($20)

Legend Tee ($20) Legend Tee ($20) Fitted S/S Top ($25)

Epic / Fly / Mesh ($25/$30)Epic / Fly / Mesh ($25/$30)

Fitted S/S Top ($25)

Base Layer Market Share

60.1%,-7.7 pts to LY

(Rolling 12-Mo)

Training Market Share 49.8%, -0.2

pts to LY(Rolling 12-Mo)

Legend Tee205K Units Sold

(3-Mo End Oct ’10)

Training Shorts 201K Units Sold


Nike Pro Combat Sales

$12.9M, +29% to LY(3-Mo End Oct ’10)

Shorts$38.1M Booked

SP/SU11 +53% to LY

Base Layer Market Share

25.7%, +9.3 pts to LY

(Rolling 12-Mo)

Training Market Share 21.1%, +3.8 pts to LY

(Rolling 12-Mo)

Tech Tee192K Units Sold


Training Shorts 162K Units Sold


UA Base Layer Sales

$26.6M, -27% to LY(3-Mo End Oct ’10)

Nike Pro Combat$39M Booked

SP/SU11+48% to LY

Updated Tech TeeComing SP’11

Legend Tee $14.2M Booked

SP/SU11 +58% to LY

ColdGear Mock ($50)

ColdGear Tight ($50)

Comp S/S Top ($25)

Flex Short ($25)

HyperWarm Mock ($50)

HyperWarm Mock 18K Units Sold


HyperWarm Tight ($50)

HyperWarm Tight 6K Units Sold, -13%

to LY(3-Mo End Oct ’10)


Updated Compression

BaselayerComing SP’11


#1

#1

Cold Gear Mock89K Units Sold, -50%


Cold Gear Tight30K Units Sold, -27%


MEN’S

Action O

utdoor

Basketball

Soccer

Young Athletes NSW

Running

W Training

Total $-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$3.4

$0.6 $0.7

$5.2

$0.4

$0.4

$0.5

$2.1

Hol 11Fall 11


Outerwear – USA FA/HO11 * REVENUE IN MILLIONS VS LY

Note: Canada Outerwear business is estimated at $3.5 mil down from $6 mil PY.

97 %

25 %

48%67 %119% -35 %-38 % new

NA APPAREL MERCHANDISING F/H’12 GEO INPUT: FLEECE, OUTERWEAR & NIKE PRO 1/27/11.

Documents

Transcript of NA APPAREL MERCHANDISING F/H’12 GEO INPUT: FLEECE, OUTERWEAR & NIKE PRO 1/27/11.