Buoyant apparel sales have pumped up the turnover of Falke’s sports unit by more than 20 percent this year, as its sports clothing range is spreading fast and sales of its sports socks continue to increase steadily. Specializing in high-quality socks, the German company launched its full-fledged apparel range two years ago, contributing to a sales jump of 28.5 percent for its sports division in 2005. Falke does not want to reveal the turnover it has achieved in the sports segment overall, but company officials indicated that they are targeting sales of €70 million by 2010.

Falke’s large-scale introduction of underwear, second layers and light jackets came at a time when the practice of sports began to change in several European countries, with consumers demanding more comfortable and stylish apparel for sports like fitness and running. The company has responded to the demand by developing rather appealing technical ranges, while stimulating retailers to fully display the items on hangers instead of stacking up dark boxes. The company indicates that its dedicated walls for sports underwear sometimes yield sales of about €8,000 per square meter.

Although Germany still makes up more than 40 percent of the sports unit’s sales, the apparel range has enabled Falke to expand its business with large customers in Austria, Switzerland and the Netherlands. The company is supporting sell-through with large-scale billboard campaign in large cities throughout the Germanic markets. Furthermore, the first Falke Sport concession recently opened in the Globus department store at the Glattzentrum near Zurich airport.
Socks still make up about 65 percent of Falke’s sports sales, compared with 35 percent for apparel, but this share is set to increase sharply over the coming years. The company believes that it has already reached the #2 position in functional underwear in Germany.

The sports division helped the German group to push its total revenues up by 6.7 percent in 2005 to €173 million, in spite of an estimated decline of 7 percent in the German hosiery market. Its sales abroad grew by 17.6 percent to represent 32 percent of total sales.

Falke has decided to concentrate the development of all its various product lines in Schmallenberg, closing a smaller unit in Lippstadt. It has also hired a new marketing manager for the whole group, Achim Peltz, replalcing Daniel Schaffo. Petlz, 43, previously handled marketing for Montblanc in Germany and then for Cartier all over Northern Europe.