Brazilian activewear line Track & Field has turned its attention to the U.S. for its next phase of growth.
The company, which opened its first U.S. outpost on Madison Avenue in New York four years ago, unveiled its second store and first location on the West Coast in Brentwood, Calif., earlier this month.
“The Westside of L.A. is so active, and this is where our customer was,” said Staci Koondel, who owns the 890-square-foot store. “This is where the high-end customer lives and shops and is active.”
The company’s line ranges from $40 to $250 and is sold on its Web site and in about 122 stores in Brazil, where it started 26 years ago.
New York proved a good testing ground for the company’s U.S. growth plans, said Track & Field cofounder Fred Wagner.
The store is doing approximately $1,500 in sales per square foot and has been growing at a compound annual growth rate of about 20 percent, according to Wagner. The average ticket size is $80 to $100.
Track & Field is eyeing about 10 store openings next year in places such as Florida and New York.
“When we get to the 10 stores and we validate the business model, the idea is to start growing fast,” Wagner said. “We are looking into markets that have a known, active lifestyle with people who like to work out every day as well as markets that have alignment of weather for the product we design.”
It also plans, eventually, to launch a Web site for U.S. customers to make purchases online, and Wagner said the company is studying shop-in-shop concepts at high-end department stores.
Brazil has room to grow, as well, with the company eyeing between 13 and 18 new stores there next year. It’s been growing at a rate of about 25 stores annually more recently, but that likely will taper off in 2016, when the focus will shift to the U.S., Wagner said.
One of the company’s points of differentiation from competitors is its collection structure, he said. Track & Field releases a limited-edition capsule collection weekly.
“As a whole, the activewear fashion business is evolving into the fashion direction, meaning that people want more exclusivity in what they buy, and the way we structure our collections makes it possible for consumers to have unique styles,” Wagner said.
About 80 percent of the company’s line is made at its facility in Brazil, with the rest sourced out to Asia and Peru.
Wagner said the existing facility in Brazil will support up to as many as 30 U.S. stores before the company explores the possibility of establishing an American factory.
“One of the things we don’t want to lose is the Brazilian twist of the brand,” he said. “It is something we would like to keep as the DNA for the brand.”