AppId is over the quota
* 2012 spring running, yoga collections bigger
* Running gear lighter, yogawear technical, casual
* Sales still small but key to brand's growth
By Phil Wahba
NEW YORK, Oct 10 (Reuters) - VF Corp will get more athletic next spring with the launch of its most extensive lines of clothes for running and yoga under its The North Face brand.
The North Face, known for outerwear for mountain climbers, is banking on its reputation for technologically advanced gear to win more customers in those two fast-growing sports.
The move puts The North Face into more direct competition with the likes of Nike Inc , Lululemon Athletic , and Under Armour Inc, which, like The North Face, are in an arms race to help improve an athlete's performance with lighter, more comfortable clothing.
"The consumer is asking us to take this formula of solving real athlete needs to new activities," Todd Spaletto, The North Face's president for the Americas, told Reuters.
As of last December, running and yoga gear made up about $40 million of The North Face's roughly $1.5 billion in annual sales. Expanding the collections every year will be a key part of VF's goal of doubling the brand's sales by 2015.
The North Face's spring collection, displayed this month at its Manhattan showroom, features running shorts and jackets that it says are 10 percent lighter. Its yoga collection is broader, with more technical items like shorts designed for the increasingly popular "hot yoga," and casual clothes like hooded sweatshirts for after the workout.
Spaletto said sales of running gear have more than tripled in five years, helped by responsive retailers, which account for the bulk of the brand's sales.
The North Face operates some 63 stores of its own. Its sales grew 21 percent worldwide in the most recent quarter.
TOUGH COMPETITION
Running and yoga are two of the fastest-growing sports in the United States.
About 13 million Americans finished a road race in 2010, up from 9.4 million in 2005, according to Running USA. The National Sporting Goods Association said the number of Americans who did yoga in 2010 rose 28.1 percent from a year earlier.
In addition to clothing, The North Face is selling a small collection of running shoes, adding its lightest shoes yet, and competing with brands like New Balance and Saucony. But runners are notorious for sticking to one brand, and even one model.
"People are brand loyal in running shoes and wear," said Morningstar analyst Paul Swinand, who follows Nike. "This is going to be a tough road for the North Face."
The key to success for The North Face will be to tout the technical advantages of its merchandise over those from tough competitors who are also adding sophisticated features, analysts said.
"The North Face has a great brand that's associated with all sorts of activities now," said Diana Katz, an analyst with Lazard Capital Markets. "The North Face can push some technical aspects others don't have."
The brand also faces stiff competition in yoga. Lululemon has a rabid following that goes beyond hard-core yogis and doesn't mind paying top dollar for its fashionable yoga wear.
Gap Inc is also pushing further into yoga wear. The company plans to have 50 locations in its Athleta yoga store chain within a few years, up from five now.
The North Face even competes with sister company, Lucy Activewear, which has about 65 yoga stores and is also owned by VF, the world's largest clothing maker. VF's other brands range from Wrangler to Eastpak to Seven for All Mankind.
Still, analysts said yoga's growth means there is room for relative newcomers.
"Shoppers want more," said Keybanc Capital Markets analyst Edward Yruma. "Other companies can also make inroads."
Spaletto said the rationale of The North Face's push into yoga and running is that many of its customers who ski and climb mountains also run and do yoga.
"We're also selling a lot of these activities to our existing customer," Spaletto said.
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