ATLANTA — After a difficult 1993, fleece might again be turning golden.
Evidence of a comeback is mounting, with business in women’s fleece garments showing strong growth at both the manufacturing and retail level.
Vendors report increased second-quarter and early fall sales, based on more balanced supply and demand, less price competition and encouraging consumer response to quality improvements, such as higher cotton content and other fabric innovations. For women, companies have refined specifications for better fit while adding fashion colors and more novelty details.
Retailers, too, are reporting increases in the fleece category.
After flat sales in the past three years, fleece has shown double-digit increases for back-to-school business at Herman’s-We Are Sports, a sporting goods chain based in Carteret, N.J., with 107 stores in the Northeast.
“Consumers want something new and they’re tired of conservative looks,” said John Hoeffler, Herman’s men’s and women’s apparel buyer. “While basic silhouettes continue to be strong, increased sales are being driven by fashion color. We had stuck with athletic-inspired basic palettes, but now we’re seeing good reaction to fashion colors, such as dusty green and pink.”
Hoeffler added that fabric innovations such as color-fast, garment dyed and pill-free treatments had also boosted sales.
Rickey Heaton, corporate buyer for Mercantile Stores, cited a bigger commitment to fleece by manufacturers this year than last. He predicted steady growth of between 5 and 15 percent this year for fleece separates, with bigger increases coming from imported fleece sets.
“After big years of 1991 and 1992 for fleece, the market abandoned it,” he said. “Nylon had been big last year, but there wasn’t as much growth as expected, so we’re seeing a much better fleece presentation from manufacturers this year.”
Heaton added that while basics still drive business, color had boosted sales, particularly in women’s areas.
“Women used to buy fleece in men’s departments, but with the new colors, they no longer have to,” he said.
“Fleece was disappointing at the end of last year,” said Lorraine Miller, first vice president, Robinson Humphrey, an Atlanta-based financial consulting firm. “Several manufacturers and mills increased capacity when demand was down through 1992, which resulted in price discounting and poor results.”
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Miller added that inventories were better this year, as manufacturers have pulled back on production schedules. Also, consumer demand appears to be on the upswing, and some companies have been able to increase prices.
Russell Corp., an Alexander City, Ala.-based vertically integrated manufacturer, reported record second-quarter sales and earnings for the 13 weeks ended July 3. Sales increased 16.5 percent to $243.5 million compared with $209.1 million for the same period last year.
Sales reflected the acquisition of The Game Inc., a licensed sports apparel company, and DeSoto Mills Inc., as well as improved consumer demand and more efficient manufacturing, said John C. Adams, chairman, president and chief executive officer. Business has also been helped by companies either going out of business or being absorbed by other companies, he said.
“The mills had geared up for a more speedy recovery after the recession, which didn’t happen,” said Tony Meyer, treasurer. “Now, we’re leaner and more efficient.”
Meyer said that pre-bookings for fall were sold out, with a surge in demand for T-shirts and selected fleece products. Prices have also increased since July 1.
Women’s business, while still small relative to total sales, is growing, although percentages were not available.
“We’re dedicating more resources and expanding the women’s line in 1995, with more test programs,” said Ginger Gann, product manager, women’s apparel.
Russell’s women’s line consists of 60 percent basics and 40 percent fashion and novelty treatments such as color blocking and color tipping. Gann said consumers had responded well to fabric treatments such as garment dyeing, which prevents shrinkage of cotton-rich products and offers a worn look, and a new Cool Max fleece, which pulls moisture away from more workout-oriented apparel.
In addition to the Russell women’s line, the company introduced a women’s and girl’s line under the Chic label, to which it bought the license in 1993. Meyer expected the Chic business to double in 1995 over 1994.
At Bassett Walker, a division of VF Corp., women’s fleece areas have seen “extreme growth,” said Susan Kohout, marketing manager. “There’s been a demand for higher-quality, high-cotton content clothing. Women are wearing these more for more social activities than strictly workout clothes.”
Bassett Walker’s private label division, which sells to such VF divisions as Lee, Wrangler and Nutmeg, now has women’s specs, with shorter sleeves and bodies, as well as decorative ribbing.
Another strong growth area has been Lee Print Wear, screen-printed and embroidered garments, which are sold to distributors. “There’s been a strong demand for decoration, such as appliqués, screen printing and embroidery or combinations of these,” said Kohout.
New colors, fabrics and other product features have all contributed to a turnaround in business for Tultex Corp., a Martinsville, Va., manufacturer of activewear and licensed sport apparel.
“About every three to four years fleece experiences a downturn,” said Charlie Nichols, director of retail marketing. “Our sales were off during November and December last year, which are usually our best two months. However, 1994 got off to an excellent start, and back-to-school sales are holding with projections or just below.”
Fruit of the Loom said good second-quarter results and strong fall orders should result in double-digit increases for fleece in 1994. Sales for the quarter came to $635.2 million versus $523 million for the same period last year, an increase of 21.5 percent.
“We saw an industrywide slowdown last year, but this year, with new categories, new accounts and new products, combined with a shakeout in the industry, things have turned around,” said Richard Swanson, vice president, casualwear.
Fruit of the Loom has targeted mass market retailers and wholesale clubs, with retail prices ranging from $5.99 to $7.99. The focus on discounters has spawned the introduction of more large sizes as well as children’s sizes.
“All mass market retailers have family fleece programs that they advertise in circulars,” said Swanson. “We expanded our sizes and offered more product, such as zipper hoods and pullovers, to round out their programs.”
Although mass retailers demand primarily basic silhouettes, color palettes change often for fashion interest. And while 95 percent of mass market product is a 50/50 blend, Swanson said he saw opportunity in more cotton-dominant products also.
While women’s is 35 percent of total fleece business, it is the fastest-growing area, projected to reach 50 percent of total sales within five years.
“Growth in women’s business is a trend that’s been happening for several years,” said Swanson. “We expect it to continue.”