Footwear Insight - Business Report Quarterly

4 Footwear Insight Business Report Quarterly ~ Q1 April 8 2024 Bob McGee, Editor footwearinsight.com LETTER FROM THE EDITOR WE DIDN'T START THE FIRE, BUT IT KEEPS ON BURNING When I walked into a 7th floor office in Boston 35 years ago this week to commence my journalism career, I was a wide-eyed, 26-year-old about to be first-time Dad with no idea about what was to transpire in the business world of footwear, retail, and sporting goods over the next 3+ decades. Sure, some people had heard of Artificial Intelligence, AI for short, given it was coined in 1956. But it wasn't all the rage. No one had yet worn Skechers, which ended 2023 as an $8 billion global brand. e Air Jordan 4 was selling for $100 at retail, outrageous to some parents but not to their teenage kids who so desired it. e Direct-To-Consumer distribution channel was more than a decade away as was 9/11 and the global Covid pandemic. Strong brands today such as On (2010), lululemon (1998), and Hoka (2009) had yet to emerge on the scene or the feet of consumers from Green Bay to Geneva. Back in 1989, when George H.W. Bush was in the White House, a gallon of gas averaged $1.27, and the year ended with an annual inflation rate of 4.82 percent (higher than 2023's 3.4%), one vital message in business then remains true today (and repeated weekly on "Survivor.") When the flame on your torch is extinguished, by Jeff Probst on television or by a lack of innovation or financial acumen in the business world, hopes are dashed, and your journey is over. Footwear market leaders, who must always fight off challenges from young, rising brands, are also tested by themselves. Failure to recharge your gameplan regularly and improve on weak areas will result in your brand's flame dimming, growing tired, and becoming less important to your target consumers. At Footwear Insight Business Report Quarterly, I want to give readers a closer look at the regular key developments at footwear companies and the important issues they face today in the 21st century where a gallon of milk costs more than $1.27 and a good pair of performance running shoes usually can't be had for less than a Ben Franklin. As we proceed through 2024, our strategy and look will be tweaked and aligned to address key footwear market issues and keep our fire burning. Q1

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