Famous Footwear 2014 Annual Report Download - page 11

10 2014 BROWN SHOE COMPANY, INC. FORM 10-K
Portfolio of Brands
The following is a listing of our principal brands and licensed products:
Healthy Living
Naturalizer: Introduced in 1927, Naturalizer has become a global family of comfort lifestyle footwear brands meeting
the needs of women across the marketplace with uncompromising comfort, fit and style. Our flagship Naturalizer brand
is sold throughout the United States and Canada, primarily at Naturalizer retail stores, national chains, department
stores, online retailers, catalog retailers and independent retailers. Naturalizer retail stores oer a selection of women’s
footwear styles, including casual, dress, sandals and boots, primarily under the Naturalizer brand. At the end of 2014,
we operated 80 Naturalizer stores in the United States (including a store in Guam) and 89 Naturalizer stores in Canada.
Of the 169 Naturalizer stores, approximately 51% are concept stores located in regional malls, with a few stores having
street locations, and average approximately 1,200 square feet in size. The other 49% of stores are located in outlet malls
and average approximately 2,300 square feet in size. Total square footage at the end of 2014 was 297,000 compared to
308,000 in 2013. In 2014, we closed 11 stores in the United States and Canada, primarily in outlet malls, and we opened six
stores, primarily in outlet malls. We expect to open one store and close 10 stores in 2015.
Naturalizer footwear is also distributed through approximately 40 retail and wholesale partners in 60 countries around
the world. On an international basis, the brand is primarily distributed through branded concept stores and shop-in-shops.
Naturalizer footwear is also distributed in China through stores operated by our joint venture partner, C. banner International
Holdings Limited (“CBI”). CBI operated 107 stores at the end of 2014 and expects to add approximately 20 stores in 2015.
Through our majority-owned subsidiary, B&H Footwear Company Limited (“B&H Footwear”), we sell footwear to CBI on a
wholesale basis, as further discussed in Note 16 to the consolidated financial statements. Suggested retail price points range
from $79 for shoes to $209 for boots.
Dr. Scholl’s: Dr. Scholl’s is an authentic brand of innovative footwear designed with an uncomplicated, playful style for a
healthier life. Dr. Scholl’s delivers proprietary comfort technology across all distribution tiers. Dr. Scholl’s crafts unique styles
that oer men and women the freedom to live active lives. This footwear reaches consumers at a wide range of distribution
channels: mass merchandisers, national chains, online and catalogs, specialty and independent retailers, department stores
and our Famous Footwear retail stores. Suggested price points range from $25 to $200. We have a long-term license
agreement with MSD Consumer Care, Inc. to sell Dr. Scholl’s, which is renewable through December 2026 for the United
States and Canada and December 2017 for Latin America. During 2014, we closed our remaining four Dr. Scholl’s stores to
focus on wholesale distribution and e-commerce sales for this brand.
LifeStride: For more than 70 years, LifeStride has created quality footwear for women who value style and comfort.
Oering work-to-weekend styles, LifeStride is both versatile and comfortable for all-day wear. LifeStride oers comfortable
footwear that dresses up or down at the right value. The brand is sold in department stores, national chains, online and in
our Famous Footwear retail stores. Suggested retail price points range from $50 to $100.
Ryka: For over 25 years, Ryka has been innovating athletic footwear exclusively for women by providing women with more
than just a downsized version of a men’s athletic shoe. The brand’s commitment goes beyond footwear design to include
apparel and fitness products. The brand is distributed through department stores, national chains, online retailers and our
Famous Footwear retail stores at suggested retail price points from $50 to $85.
Contemporary Fashion
Sam Edelman: Since its inception in 2004, designer Sam Edelman’s brand has quickly emerged as a favorite among
celebrities and fashionistas around the globe. Sam Edelman captures the imagination of women with on-trend styling
and unique materials. In 2012, the brand opened its flagship store in New York City, and in 2014, the brand expanded its
retail presence to include a store in Beverly Hills. Additional stores are expected to open in 2015. Sam Edelman footwear
is sold primarily through department stores, independent retailers, and online at suggested retail price points starting
at $65 for sandals, $90 for flats, $100 for heels, and $200 for boots. In addition, we have license agreements to sell
apparel and accessories under the Sam Edelman brand.
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. We had a license agreement to sell Franco
Sarto footwear, which was to expire in 2019. In February 2014, we purchased the Franco Sarto trademarks for $65.0 million,
terminating this license agreement, as further discussed in Note 9 to the consolidated financial statements.
Via Spiga: Via Spiga is named after the main street in one of the most famed shopping districts in Milan, Italy. For over
25 years, Via Spiga has maintained its rich Italian heritage through its use of luxurious materials and beautiful detailing,
providing chic, sophisticated footwear for the cosmopolitan woman who wants to make a fashion statement every day.
The brand is primarily sold in premier department stores, upscale boutiques and online. This brand sells at suggested
retail price points from $155 for shoes to $425 for boots.