How Authentic Brands Group Scored Its FNAA Company of the Year Honor
On Nov. 29, Authentic Brands Group will be honored with the Company of the Year award at the 37th annual FN Achievement Awards. Below is an article from the magazine’s Nov. 27 print issue on a closer look at the dealmaker’s newest acquisitions and partnerships.
It’s been another blockbuster year for Authentic Brands Group.
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Over the course of 2023, the New York-based brand management company continued its historic shopping spree, nabbing major fashion and footwear players like Hunter Boots, Rockport, Vince and Boardriders (the parent company of Quiksilver, Billabong, Roxy, DC Shoes and others).
That led to its third Company of the Year award in a five-year span — a streak that Authentic founder, chairman and CEO Jamie Salter credits to its entire business formula. “This is a true testament to Authentic’s platform, the work of our dedicated employees and strategic partnerships with best-in-class operators and licensees who help build long-term value in the marketplace for our brands,” he said.
One of Authentic’s first big achievements this year came when it snapped up Hunter Boots in June. While the price tag remained undisclosed, a May report by SkyNews alleged the deal could be valued around $124.8 million.
Then, just one month later, the company purchased Rockport. At the time, the heritage shoe brand was in the middle of a bankruptcy filing when Authentic emerged as the stalking horse bidder, eventually securing the legacy shoe business.
But the company’s purchase of Boardriders, which closed in September for a reported $1.25 billion, signaled a return to Salter’s roots. The Toronto native started his career in sports marketing and was the co-founder of Ride snowboards in the early ’90s. After that company went public, he and Fanatics’ founder and executive chairman Michael Rubin created Global Sports Inc., which eventually became GSI Commerce. Once he exited that business, Salter turned his attention to licensing, co-founding Hilco Consumer Capital. Then in 2010, he formed Authentic Brands Group.
Over the past 13 years, Authentic has become one of the world’s leading brand platforms. In 2022, for instance, it formed a strategic partnership with David Beckham to co-own and manage his global brand; completed its largest acquisition with Reebok and finalized the purchase of Ted Baker.
All told, Authentic now boasts more than 50 brands and generates more than $29 billion in annual global retail sales, of which footwear represents 45 percent of the company’s total business. The company also has a presence in 150 countries, operates nearly 13,000 stores or shop-in-shops, and its brands are carried at 370,000 points of sale.
So what is the key to Authentic’s unprecedented growth? Ahead of its Company of the Year award, top execs and partners provided insight into its strategy.
Integrating Reebok
President and chief marketing officer Nick Woodhouse told FN that the key to Authentic’s success is the company’s ability to integrate new brands quickly into its business model.
But not every deal is as easy as the last. Woodhouse noted that Reebok was by far the most difficult to bring into the fold due to the large size of the company. “Coming from Adidas, Reebok was at such a large scale and took a bit longer than usual to integrate into our business.”
Despite this enormous task, Woodhouse noted that Authentic was able to secure 18 operators around the world who are “entrepreneurial minded” to help put Reebok back at the forefront of the sneaker business. “We also make sure our licensing partners are allowed to have some form of regional freedom in order to speak to customers who may want something a little bit different,” Woodhouse noted.
The executive also pointed out the recent naming of NBA legends Shaquille O’Neal and Allen Iverson to lead Reebok’s basketball division as president and VP, respectively.
“Let’s face it, Shaq is a super-influencer, that’s what he does,” Woodhouse said. “He provides influence through his business knowledge and his basketball knowledge. Shaq and Allen are inextricably linked with Reebok and their careers through their lifetime deals. They’re both great business minds and will help shape the future of Reebok basketball, not just through wearing the shoes but also by being included in decision making.”
Lessons in Deal-Making
This year brought fresh challenges as the business continued to grow.
Woodhouse said that as each new name joins the portfolio, a custom plan is laid out. “We are not a cookie-cutter, one-size-fits-all company,” he said. “The beauty of the brands we buy is that they are already established, they just have broken models. So each brand has a story to it and we have to maintain that while also growing it at the same time. For example, we would never do a running shoe at Rockport, and Reebok would never do a high heel — that wouldn’t make sense.”
Speaking of Rockport, the executive said that Authentic is applying the same principles to that business as with the Reebok integration. “Our retail partners are not going to automatically give us shelf space just because we acquire a brand,” Woodhouse said. “We have to work on the brand a bit. We are looking to add more tech- infused elements into the shoes. This will be formally announced in the future, with the goal of making Rockport shoes more comfortable.”
As for Hunter, Woodhouse said the challenge is that the brand is known for one silhouette that consumers only wear for one specific occasion — the rain boot. “You don’t wear Hunter boots on a 90-degree day in New York, right? That’s the exciting challenge for us. How do we take the Hunter boot and its inherent Britishness and turn it into a four-season business with apparel as well,” the executive added.
Partnership Works
For Authentic, finding the right licensees is crucial, especially when it comes to footwear, and it’s getting tougher.
“The group of great footwear companies is shrinking,” Woodhouse said. “But this is generally a good thing for me because we know only the strong will survive. They must have a proven track record with not only their own brands but with licensed brands. In the end, we chose the companies that present the best business plan for the category and who we think will protect the brand and grow it with integrity.”
Salter agreed that relationships are crucial. “One thing that sets Authentic apart is the value we place on family,” he said. “Whether it’s at home, abroad or in business, family matters. We understand the importance of the bonds we create, the support we provide and our shared commitment to overall success.
Among Authentic’s key shoe partners are Aldo Group, Marc Fisher Footwear and Warson Brands.
This year, the Aldo Group has taken on new deals to make Brooks Brothers, Ted Baker and Roxy footwear for Authentic, while Marc Fisher has added Rockport and Hunter to its mix. Warson Brands, meanwhile, is now producing work footwear under Authentic’s Reebok, Rockport, Frye, Volcom, DC Shoes and Roxy labels.
Jonathan Frankel, president of Aldo Product Services at the Aldo Group, told FN that Authentic Brands Group simply “outworks, out delivers and outperforms the rest” to make business happen. “Jamie and Nick put it all on the line to start Authentic, they surrounded themselves with truly exceptional people and they have earned the success they are experiencing,” Frankel said.
Marc Fisher, founder of Marc Fisher Footwear, echoed Frankel’s sentiment. “Authentic Brands Group is the most transformational company in the industry, led by true visionaries Jamie and Nick,” Fisher said. “It’s amazing to work with them and be a part of their innovative strategy and out-of-the-box approach to the footwear business over the years.”
Susan Itzkowitz, president of Marc Fisher Footwear, added that Authentic has been an “incredibly supportive” and “collaborative” footwear partner. “Their team champions innovative strategy solutions and have been steadfast in providing next-level growth and customer connection across our licensees, such as Nine West, Bandolino and now Hunter Boots and Rockport brands,” she said.
For 37 years, the annual FN Achievement Awards — often called the “Shoe Oscars” — have celebrated the style stars, best brand stories, ardent philanthropists, emerging talents and industry veterans. The 2023 event is supported by sponsors Authentic Brands Group, Birdies, Caleres, Crocs, FDRA, Nordstrom, Saucony and Vibram.
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