Famous Footwear 2012 Annual Report Download - page 14

12 2012 BROWN SHOE COMPANY, INC. FORM 10-K
Contemporary Fashion
Sam Edelman: Sam captures the imagination of women with on trend styling and unique materials. In 2012, the brand
opened its flagship store in New York City. The brand is sold primarily through department stores and independent retailers
at suggested retail price points starting at $65 for sandals, $90 for flats, $100 for heels and $200 for boots. Sam Edelman
held the No. 6 market share position in the bridge/designer zone within the women’s fashion footwear category across NPD
tracked point-of-sale channels at the end of 2012, according to The NPD Group/Retail Tracking Service. Sam Edelman was
named brand of the year by Footwear News.
Franco Sarto: The Franco Sarto brand has a loyal, career-focused consumer who is passionate about the brand’s modern
Italian-inspired style, fit and quality. The brand is sold in major national chains, department stores and independent retailers
at suggested retail price points from $79 for shoes to $225 for boots. Franco Sarto ranked No. 5 in market share position in
the better zone within the women’s fashion footwear category across NPD tracked point-of-sale channels at the end of 2012,
according to The NPD Group/Retail Tracking Service. We have a license agreement with Fashion Shoe Licensing LLC to sell
Franco Sarto footwear that expires in 2019.
Via Spiga: Via Spiga provides chic, sophisticated footwear for the cosmopolitan woman who wants to make a fashion
statement every day. The brand is primarily sold in the bridge/designer zone in premier department stores and upscale
boutiques. This brand sells at suggested retail price points from $50 for shoes to $398 for boots. The brand held the
No. 7 market share position in the bridge/designer zone within the women’s fashion footwear category across NPD tracked
point-of-sale channels at the end of 2012, according to The NPD Group/Retail Tracking Service.
Fergie and Fergalicious by Fergie: We have created two namesake footwear lines in collaboration with entertainment
superstar Fergie (Stacy Ferguson) to fully capture the multifaceted aspects of Fergie’s life as an award-winning singer,
songwriter and actress. Fergie footwear portrays the artist’s confident, individual style in a line of sophisticated, sexy
footwear with a glam rock influence. The brand launched in spring of 2009 and is currently being sold at better department
stores, boutiques, independent retailers and online at retail price points of $60 for shoes to $200 for boots. Fergalicious
by Fergie shoes have a fun, funky attitude inspired by her pop rock persona. Fergalicious by Fergie also launched in spring
2009 and is available at Famous Footwear, Famous.com and other national chains at retail price points of $40 for shoes to
$100 for boots. Fergalicious held the No. 9 market share position in the moderate zone within the women’s fashion footwear
category across NPD tracked point-of-sale channels at the end of 2012, according to The NPD Group/Retail Tracking Service.
We have a license agreement with Krystal Ball Productions to sell Fergie/Fergalicious footwear that expires in 2014.
Carlos by Carlos Santana: The Carlos by Carlos Santana collection of women’s footwear is sold at major department stores,
national chains and our Famous Footwear stores. Marketed under a license agreement with legendary musician Carlos
Santana, this brand targets trend-conscious consumers with hot, fashionable shoes inspired by the passion and energy of
Santana’s music. Suggested retail price points range from $89 for shoes to $225 for boots. Carlos by Carlos Santana holds
the No. 16 market share position in the better zone within the women’s fashion footwear category across NPD tracked point-
of-sale channels at the end of 2012, according to NPD Group. We have a license from Santana Tesoro, LLC to sell Carlos by
Carlos Santana footwear that expires in 2014 with extension options through 2020.
Vera Wang: The Vera Wang shoe collection interprets Vera’s strong, edgy attitude and oers the consumer unique product
for her contemporary, fashion-savvy lifestyle. The brand is sold in the designer section in premier department stores at retail
prices ranging from $150 for shoes to $550 for boots. We have a license agreement with Vera Wang Licensing LLC to sell
Vera Wang footwear that expires in 2013, with an extension option through 2016.
Vince: The Vince shoe collection launched in the fall of 2012 at premier department stores and upscale boutiques. Vince
delivers contemporary casual footwear that a sophisticated, modern woman wears eortlessly, serving as a functional luxury
basic for all her lifestyle needs. Suggested price points range from $150 for shoes and $595 for boots. We have a license
agreement with Kellwood Company to sell Vince footwear that expires in 2015, with an extension option through 2020.
Products sold under license agreements accounted for Wholesale Operations’ net sales of approximately 47% in 2012,
37% in 2011 and 44% in 2010. Brown Shoe Company also receives royalty revenues for licensing owned brands, including
brands listed above, to third-parties.
Portfolio Realignment
During 2012, we substantially completed our portfolio realignment initiatives that began in 2011. These portfolio realignment
initiatives included selling The Basketball Marketing Company, Inc. (“TBMC”) (markets and sells footwear bearing the AND 1
brand name, which was acquired with American Sporting Goods Corporation (“ASG”)); exiting certain women’s specialty
and private label brands; exiting the children’s wholesale business; closing two U.S. distribution centers; closing or relocating
numerous underperforming or poorly aligned retail stores; closing facilities in China; and other infrastructure changes.