Running Insight

4 runninginsight.com © 2018 Formula4media LLC. Group. "And she's a magnetic personality. One thing that helps define great leaders is to set a strategy, be decisive, understand the consumer and pull everyone along with them. And I think she'll be great at that." Cavassa assumes the presidency at a moment of transition for the brand. Sales were down in the mid-single digit for the first quarter of the year, and Wolverine President, Chairman and CEO Blake Krueger said carryover drag from fit and quality issues in 2017 would hamper sales into the second half of 2018, with only low-single-digit growth forecast for the year. NPD analyst Matt Powell said Saucony is facing similar headwinds to other performance athletic brands in the mass market. "The nature of fitness has changed and the brands and retailers haven't made that adjust- ment," he said. Noting that the brand was still a top brand in the run specialty channel and a top-10 brand in the mass market retailers, he said accelerating growth in a flat market would be the challenge. Woodworth said Cavassa is taking the reins at the brand at an auspicious time. "At Saucony we're right in this reset, and I think that reset goes back to our roots, which I would describe as owning the core in the running business and the consumer that lives in that world," he said. "Again, it's no secret, we've lost some marketshare there, we've had some issues around fit, but it's completely fixed and we're back on upward swing. She's coming in at a great time to accelerate things." Speaking exclusively to Running Insight, Cavassa sounds off on the importance of the RSA channel, new opportunities and her priori- ties at the brand. As you take over the top spot at Saucony, what are the big-picture industry issues you're thinking about? Cavassa: "What's top of mind for me is women. The women's market is driving growth and no surprise there, because she embraces perfor- mance and style and all of it, right? There's not a separation. And then the price compression as it relates to the running industry — and it crosses far beyond running — but that's really challenging for a true performance brand. This isn't unique to Saucony, but it's definitely a challenge that we have to solve." What opportunities are most promising for the brand as you join? "Honing the product engine will really be a main focus, and then extending the brand in places that make sense for an innovative running brand. We're looking at trail running, we're looking at women's, and then of course Originals. And we're really, really staying committed to the performance core and innovation." Brands across markets are trying to bal- ance their own digital direct sales efforts with their retailer partnerships across different channels, specialty run included. How will you be evaluating and creating that balance? "Today it's all seamless, right? The consumer wants product where they want it, when they want it. And operationally that's challenging, especially for brands that have a history that is brick-and-mortar and wholesale. That shift [to a more seamless model] has to happen; the consumer is demanding that. We have strong partnerships in specialty run and will continue to drive those and defend that core and get back to thought leadership there. Being on the forefront of innovation for runners will certainly benefit the channel, and everywhere that run- ners shop. I think we have an opportunity in existing channels to have stronger presences and more product. That is priority A-No. 1, for sure. From there, we'll be digging in as a team and identifying where we're go in the future." Sales in the performance world have been challenged — by and large, it's smaller firms like Altra, Hoka and On Running that have seen share gains. What's your plan to get growing? "I don't think it's going to be an easy task. With smaller brands there's motivation and they're very nimble and they aren't defending a core — they're going after the future. Saucony's in a place where we'll be doing both. Running and even runners have been slow to demand beautiful product because it's such a function- ally based [purchase]. They've been willing to say, 'I'm going to buy this shoe whether I like the look of it or not because it's going to help me.' But that is old thinking. Saucony has made humongous strides in the past years and they RUNNING INSIGHT Interview with New Saucony President (continued) Saucony Liberty ISO

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