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Copyright 1998 Information Access Company,
a Thomson Corporation Company;
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Copyright 1998 Capital Cities Media Inc.
WWD

July 16, 1998

SECTION: No. 141, Vol. 175; Pg. 8; ISSN: 0149-5380

IAC-ACC-NO: 20923353

LENGTH: 1026 words

HEADLINE: NSGA EXPO FEELS PINCH; National Sporting Goods Association; 1998 World Sports Expo

BYLINE: Feitelberg, Rosemary

BODY:
NEW YORK -- When the National Sporting Goods Association's annual World Sports Expo kicks off Friday in Chicago, there will be plenty of fanfare about what's there -- and what's missing.

With more activewear makers scaling back on athlete endorsements, marketing plans and other high-ticket expenses, some have backed off from trade shows, including the upcoming one. Following the lead of Reebok, Nike and Fila, several major retailers are passing on the three-day event at McCormick Place.

The financial stress in Asia, soft sales of athletic footwear and ongoing retail consolidation -- especially among sporting goods stores -- continue to take their toll, prompting executives to reevaluate their budgets.

There will be 1,000 exhibitors at this year's show -- a 23 percent drop compared with last year. Show attendance is expected to reach 80,000 -- a 7 percent decline.

"The entire industry is not doing so hot, and we're reflecting that," a NSGA spokesman said. "There are so many factors coming into play that we didn't face in years past."

Nevertheless, activewear makers exhibiting at the show will serve up new looks and images for spring.

"The basic business must be surrounded on the edges by new products. We back that up by being steady in basics and offering highly customized advertising," said Eric Merk Sr., president of InSport, an activewear firm in Beaverton, Ore.

For spring, InSport will unveil a four-piece group of fitness maternity wear. With sales of women's activewear running 18 percent ahead of last year, InSport expects that group to contribute to additional growth.

Show traffic is expected to be greater than last year at the Danskin booth, according to Debbie Hobbs, senior vice president of marketing. She attributed the interest to two factors -- the general growth of the women's activewear category and the fact that the casual lifestyle is here to stay.

Having restructured its senior management team, Danskin is anxious to speak with retailers about its new image. In addition to Hobbs, two other new executives, Cathy Volker, president and chief executive officer, and Denise Landman, senior vice president of sales, will meet with retailers at the show.

For the show, Danskin has developed its first look book, which features photographs of casual lifestyle looks as well as performance styles made of Dry Zone, a fabric of polyester microfiber and Lycra spandex.

"Our focus is about product, and how we've expanded the line beyond our core," Hobbs said.

Nutmeg Mills, a division of VF Corp., will be playing up its new alliances with the four major sports leagues, NASCAR and the NCAA. Next month, its first line of Lee Sport women's activewear carrying the logos of the NBA, NFL, NHL and MLB will be shipped to 1,000 doors. Each logo group will have about 14 styles, said Ed Doran, president of licensed knitwear for Nutmeg Mills. Retail prices range from $ 25 for an embroidered T-shirt to $ 75 for a fleece jacket.

Nutmeg Mills is debuting Riders sportswear carrying the insignias of the four major leagues. Those offerings will be shipped to 300 doors for fall, Doran said.

Spring offerings for both lines will be showcased at Chicago.

"We've done a tremendous amount of market research, and the leagues did as well. That told us that women want to support their favorite teams, but they haven't found the appropriate clothing," Doran said.

With plans to show spring lines for its licensed Everlast, Converse and MTV's The Grind at the show, Active Apparel Group is disappointed in the expected turnout of retailers, said George Horowitz, president and ceo.

"The industry is killing itself. If retailers and manufacturers don't get behind this show, we're going to lose another important area of communication," Horowitz said. "If that happens, the Internet and catalogs will continue to grow, unfortunately. It doesn't have to be like that."

AAG expects to finish the year ahead of plan, although the industry is going through a rough period, Horowitz said.

"Business in general is difficult right now, and it shouldn't be. [Activewear] departments need to have a good selection of brands and colors, which manufacturers have out there. And consumers are looking for it," he said. "Department stores aren't carrying as much as they should."

In addition, several major retailers might limit their offerings for lesser-known labels due to the "overexposure" of big brands, Horowitz said.

Whatever the turnout at the show is, Nick Richino, global apparel operations manager for New Balance, said he feels it's essential to be there to meet and work with retailers directly.

"We're very relationship oriented. The best way to do business is face-to-face," he said.

New Balance expects to review its expanded spring line with at least 30 stores at the show. Three new groups have been added -- trail walking, golf and basketball. This year's projected wholesale volume is $ 10 million, Richino said.

After "fumbling around in apparel for three or four years," New Balance took a new direction this fall by focusing on technical items, he said. That approach should help the company increase its women's apparel sales to 45 percent of its total volume next year, from the current 30 percent, Richino said.

Technical looks will also be the focus at the Saucony booth.

Executives are anxious to show retailers how its apparel has been revamped for spring, said Joan Collins (not the actress), who joined the company earlier this month as manager of apparel, a new post.

"There's no fashion and no cotton in the line. It's really technical. We're using a lot of CoolMax and Lycra [spandex]," she said. "We've narrowed the offerings to make it more of a true running line. And we want to talk to retailers about that."

Russell Athletic executives will be playing up new performance styles and team uniforms in the women's line, said John Lee, director of advertising and public relations.

To help educate consumers about the benefits of some new products, Russell has developed point-of-purchase material, which will be on display at its booth.

LANGUAGE: ENGLISH

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