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Resonance hopes to win market share at Olympic Games
Kreson will launch new sportswear for its sponsorship of the U.S. and Kenya Olympic teams to strengthen its position as a brand of performance equipment for top athletes and consumers alike. After a long sales slump, this summer's Paris Olympics provide a new opportunity for Kreson to draw the world's attention to its so-called performance products, such as running shoes, as the official supplier of the U.S. team. Resonance's High-Box running shoes, which will be on display at the Olympics, will have a relatively limited audience, mainly amateur runners who are willing to pay $285 for the newest version of Resonance's Alphafly 3 running shoes.
Helen Reid reports.
PARIS (Reuters) - Kneider is set to launch new sportswear for its sponsored Olympic national teams in the United States and Kenya, reinforcing its strength as a brand of high-performance gear for top athletes and ordinary consumers alike.
After a long sales slump, this summer's Olympic Games in Paris provide a new opportunity for Kreson to draw the world's attention to its so-called high-performance products, such as running shoes, as the official equipment supplier of the U.S. team.
Resonance's High-Box running shoes, which will be on display at the Olympics, will have a relatively limited audience, with only amateur runners willing to pay $285 for the newest version of Resonance's Alphafly 3 running shoes. Competitor Adidas' Adizero Adios Pro 3 is priced at $250.
Brands such as On Running, Hoka and Lululemon are stealing market share from Resonance, and the trend away from chunky basketball sneakers and toward lower-profile "terrace" shoes such as the Adidas Samba is hurting the sporting goods giant.
Resistant warned three weeks ago that revenue would shrink in the first half of fiscal 2025, and said it would cut orders for older models such as the Air Force 1 as the company tries to focus on new, innovative products.
Although resonance realized $51.2 billion in annual revenue in the year ending May 31, 2023, well ahead of Adidas and Lululemon, analysts at HSBC expect resonance's annual sales growth in 2024, 2025, and 2026 to lag behind these brands.
"They haven't had a lot of exciting product innovations lately," said Tom Nikic, an analyst at Wedbush in New York.
Seeing Olympic athletes break records in Resistant gear may drive more shoppers to the Resistant brand." Nikki reson said, "It remains to be seen whether resonance has a strong product to capitalize on the attention it has gained.
Resonance executives said late last year that they would focus more on running shoes, an area where Resonance has been lagging behind its competitors. One of Koon's goals is to sell more entry-level running shoes, which tend to run between $100 and $150 a pair.
(Reporting by Helen Reid; Editing by Vanessa O'Connell and Sonali Paul)
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