As sports retailers like Under Armour fall under pressure from the brick-and-mortar slowdown, Columbia Sportswear’s President and CEO Tim Boyle told CNBC that his company’s key to success has come from standing out.
“Nobody needs another brand of footwear or apparel. Regardless of how impactful our products are, it’s about being different and it’s about differentiating yourselves from others,” Boyle told Cramer on Monday.
Boyle cited his company’s ad campaigns featuring his mother, rap artist Macklemore, Hollywood brothers Zac and Dylan Efron and Disney’s Star Wars franchise as examples of creative collaborations, adding that Columbia could be doing even more to spread its message.
“Our marketing spend is only around 5 percent of sales. Some of our competitors spend up to 12. We don’t think we need to spend that much, but we need to find more capital to spend on marketing and, frankly, we need to be more profitable,” the CEO said.
“We have legacy activities which are not moving the business forward,” he continued. “We need to uncover those, allow our employees to really talk about those areas of the business which are not helping and may be holding us back, and allow for the business to grow, become more profitable and throw off more money for marketing. So we want to tell our story better.”