Skechers "doesn’t have much of a presence" in the $7B performance running shoe market, but it might get a boost after Meb Keflezighi won yesterday's Boston Marathon while wearing the company's shoes, according to Sara Germano of the WALL STREET JOURNAL. Skechers is currently "on the upswing," as its sales "rose 18% last year" to $1.8B. The gain is a big one after the company paid $40M in '12 to "settle false-advertisement claims" with the FTC over its Shape-ups shoes. Keflezighi's contract renewal with Skechers in '12 was "distinctive in that it didn’t feature 'reduction clauses' that would allow Skechers to scale back his base pay if he didn’t perform well in races." Contract terms also stated that Keflezighi would "be able to wear logos of other corporate sponsors, another rarity in a market where most professional runners earn a substantial portion of their income from deals with shoe companies, which typically demand exclusivity." Keflezighi previously endorsed Nike, but did not renew his contract in '10 because he "thought Nike wasn't offering enough" (WSJ.com, 4/21). In Boston, Donna Goodison notes Skechers this year passed New Balance to "gain the fifth-largest share of the overall athletic footwear market." But Skechers remains ranked 17th among performance running companies with a 0.14% share of the market. Skechers Performance Division VP/Global Merchandising & Marketing Rick Higgins said Keflezighi's win yesterday is a "huge opportunity for us to elevate the brand's perception." Skechers last Friday in the Boston market "launched a new 'Go Meb, Go!' advertising campaign around the GOmeb Speed 3" shoe. The brand "likely will take another look at that campaign given Keflezighi’s performance yesterday." Higgins: "I’m sure that we will throw in a few mentions of his Boston win" (BOSTON HERALD, 4/22).
