The Golf Shoe Boom
Footwear News
Keeping you up to date on top news in the footwear industry, groundbreaking fashion trends and the who's who in shoes.
Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.
Today, we have earnings from Caleres and a deep dive into the golf shoe business. Plus, we look at a South African shoe brand's U.S. expansion plan.
Here's what you need to know.
More Americans Are Playing Golf, and Shoe Sales Are Booming
As the 2024 PGA Tour season heats up, so too is the golf shoe market as more Americans continue to flock to the sport following its rise in popularity during the pandemic.
Indeed, while major players like Adidas, FootJoy and Callaway still dominate the golf footwear market, the industry has seen a steady influx of new brands entering the space in recent years.
One of the largest of these launches came in February when Tiger Woods unveiled his new golf brand Sun Day Red. Created in partnership with TaylorMade Golf, the debut was made possible after Woods split from Nike in January after 27 years with the company. Days after the announcement, Woods gave a sneak peek as to what the collection will look like when he stepped onto the green at the Genesis Invitational wearing shoes and apparel from his new label.
Launches like the one from Woods is just the tip of the iceberg, as an increasing number of brands dig deeper into the market – a stark contrast from the reports that Nike may be pulling away from the sport entirely.
Caleres Posts Earnings, Sales Beat for Q4, Outlines Cautious Guidance
Caleres reported better-than-expected results in the fourth quarter, though shares dipped slightly in pre-market trading on Tuesday after the company issued a cautious outlook for fiscal year 2024.
The St. Louis-based company reported fourth quarter sales of $697.1 million, up 0.1 percent from the prior year and ahead of the $694.3 million expected by analysts surveyed by Yahoo. Adjusted net earnings were $30.8 million for the quarter, with adjusted earnings per diluted share of 86 cent, ahead of the 85 cents expected by analysts.
Caleres president and chief executive officer?Jay Schmidt said Caleres’ fourth quarter performance was largely driven by its brand portfolio, which “led the financial performance of the company,” he said in a statement. This segment includes the company’s owned brands, such as Vionic,?Allen Edmonds, Naturalizer, Sam Edelman — which is marking its 20th anniversary — and more.
Brand sales increased 4.5 percent in Q4 and delivered its “best-ever annual adjusted operating earnings, which topped $148 million,” Schmidt said.
How South African Shoe Brand Veldskoen Plans to Leverage its Heritage to Win Over the U.S. Market
Everyone in South Africa knows what a Veldskoen is. Now, a shoe company that sells its own version of the 300-year old heritage footwear product is banking on that success story to win over consumers in the U.S. footwear market.
“It’s the most well-known shoe that nobody outside of Africa has ever heard of,” explained Nick Dreyer, who cofounded “Veldskoen Shoes” in 2016 with Ross Zondagh after seizing the opportunity to build a brand from this iconic product. Veldskoen, which means “field shoes,” got its name from Dutch Settlers who came to South Africa close to 400 years ago. The unique style, which is typically made of hand-stitched leather, has influenced more modern designs like the Clarks Desert Boot, according to Dreyer.
Veldskoen’s U.S. business — which is entirely DTC digital sales — makes up 20 percent of its global business. Dreyer wants to grow this contribution by about five or six times in the next 18 months. Eventually, he believes U.S. business should account for 70 percent of Veldskoen’s total business.
To do this, the company has established a new headquarters in Atlanta, Georgia and is exploring new wholesale partnerships.
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Thrilled to see brands like Caleres exploring new fields ??! Warren Buffett said - the best investment you can make is in your own abilities. Growth vibes! ?????