Breathing New Life Into an “Old Time” Brand
Stride Rite was a well-known ” old-time” shoe company that focused primarily on children’s and leisure footwear.
ISSUE
Stride Rite’s brands were in decline, with poor profitability, and its organization lacked accountability and focus. Each of the company’s brands was underachieving: Stride Rite had an underperforming wholesale focus; Sperry/TopSider was relegated to a price orientation; Keds was losing its older customer base, and the Tommy Hilfiger license was unprofitable.
SOLUTION
New management was brought in, and new metrics and accountability were introduced. The new Stride Rite brand strategy greatly expanded its store base and repositioned itself as a more contemporary shoe brand. Robeez was acquired, and the walking shoe segment expanded. Sperry/Top Sider was repositioned as a premium performance casual brand, and a women’s line greatly expanded that became company best sellers. Tommy Hilfiger shoes focused on shoe chains and department stores to improve profitability. The Saucony running shoe company was acquired and successfully integrated, achieving lower overall overhead costs and increasing sales.
RESULTS
In the seven years David Chamberlain was CEO, the company dramatically increased sales and profitability. The stock price grew 3x, from under $7/share when he joined to over $20/share when he left seven years later.
