Reebok Toning Shoes = $25 Million In Refunds

via Theshoegame

This is definitely not good news for Reebok. According to the FTC (Federal Trade Commission), to settle a case, Reebok has agreed to pay $25 million for refunds to people who bought Reebok toning shoes or apparel.

The Federal Trade Commission, the nation’s consumer protection agency, charged Reebok with making claims about EasyTone and RunTone shoes that the company couldn’t support. According to the FTC, Reebok claimed that using these products would strengthen and tone leg and butt muscles.

To settle the case, Reebok has agreed to pay $25 million for refunds to people who bought Reebok toning shoes or apparel. -FTC

Did you buy a pair or know someone that did? They can apply for their refund
here.

Read the FTC press release:

Reebok to Pay $25 Million in Customer Refunds To Settle FTC Charges of Deceptive Advertising of EasyTone and RunTone Shoes

Settlement Order Prohibits Reebok from Making Unsupported Claims that ‘Toning Shoes’ Strengthen, Tone Muscles

In its ongoing effort to stem overhyped advertising claims, the Federal Trade Commission announced that Reebok International Ltd. has agreed to resolve charges that the company deceptively advertised “toning shoes,” which it claimed would provide extra tone and strength to leg and buttock muscles. Reebok will pay $25 million as part of the settlement agreement. The funds will be made available for consumer refunds either directly from the FTC or through a court-approved class action lawsuit. Consumers who bought Reebok toning shoes or toning apparel can submit a claim here.

“The FTC wants national advertisers to understand that they must exercise some responsibility and ensure that their claims for fitness gear are supported by sound science,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection.

Consumers should carefully evaluate advertising claims for work-out gear and exercise equipment. For more information see: How’s that Work-out Working Out? Tips on Buying Fitness Gear.

Reebok’s EasyTone walking shoes and RunTone running shoes have retailed for $80 to $100 a pair, while EasyTone flip flops have retailed for about $60 a pair. Ads for the shoes claimed that sole technology featuring pockets of moving air creates “micro instability” that tones and strengthens muscles as you walk or run.

According to the FTC complaint, Reebok made unsupported claims in advertisements that walking in its EasyTone shoes and running in its RunTone running shoes strengthen and tone key leg and buttock (gluteus maximus) muscles more than regular shoes. The FTC’s complaint also alleges that Reebok falsely claimed that
walking in EasyTone footwear had been proven to lead to 28 percent more strength and tone in
the buttock muscles, 11 percent more strength and tone in the hamstring muscles, and 11 percent more strength and tone in the calf muscles than regular walking shoes.

Beginning in early 2009, Reebok made its claims through print, television, and Internet advertisements, the FTC alleged. The claims also appeared on shoe boxes and displays in retail stores. One television ad featured a very fit woman explaining to an audience the benefits of Reebok EasyTone toning shoes. She picks up a shoe from a display and points to a chart showing the muscles that benefit from use of the shoes, while a video camera continues to focus on her buttocks. She says the shoes are proven to strengthen hamstrings and calves by up to 11 percent, and that they tone the buttocks “up to 28 percent more than regular sneakers, just by walking.”

Under the settlement, Reebok is barred from:

* making claims that toning shoes and other toning apparel are effective in strengthening muscles, or that using the footwear will result in a specific percentage or amount of muscle toning or strengthening, unless the claims are true and backed by scientific evidence;
* making any health or fitness-related efficacy claims for toning shoes and other toning apparel unless the claims are true and backed by scientific evidence; and
* misrepresenting any tests, studies, or research results regarding toning shoes and other toning apparel.

Ftc.gov/reebok gives consumers the basic facts about the Reebok settlement and
directs them to apply for a refund if they are eligible.

The Commission vote authorizing the staff to file the complaint and approving the proposed consent decree was 5-0. The FTC filed the complaint and proposed consent decree in the U.S. District Court for the Northern District of Ohio on September 28, 2011. The proposed consent decree is subject to court approval.

September 29, 2011. Tags: , , . Uncategorized. 4 comments.

Nike SB Dunk Low “Roller Derby”

Nike SB is paying tribute to the roller skating days of the 1950′s with their second collaboration with Made For Skates. For a vintage feel, Nike added antique styling cues that includes distressed suede and cracked leather. Wood panel pattern embossed suede on the side panels and special graphics insoles adds a nice touch. These are scheduled to release as a quickstrike in October. via Warped



September 23, 2011. Tags: , . Uncategorized. Leave a comment.

Nike’s Fiscal 2012 First Quarter Details

Here’s the details:

* Revenues up 18 percent to $6.1 billion, up 11 percent excluding currency changes
* Diluted earnings per share up 19 percent to $1.36
* Worldwide futures orders up 16 percent, 13 percent growth excluding currency changes
* Inventories up 41 percent

Today, September 22, 2011, Nike, Inc. reported financial results for its fiscal 2012 first quarter which ended August 31, 2011. Diluted earnings per share and revenue represented new records as a strong demand for NIKE, Inc. brands, SG&A expense leverage, tax efficiencies and a lower average share count offset the impact of a lower gross margin.

“We’re off to a strong start in fiscal year 2012. We have a powerful and diverse portfolio of brands and businesses, and we’re focused on leveraging them to drive growth and create value for our shareholders,” said Mark Parker, President and CEO, NIKE, Inc. “It pays to be prudent in times like these. It’s also essential that we remain on the offense, creating opportunities. We do that by connecting with consumers, designing innovative products and delivering amazing experiences. That’s how we continue to lead this company and the industry into the future.”

First Quarter Income Statement Review

* Revenues for NIKE, Inc. increased 18 percent to $6.1 billion, up 11 percent on a currency-neutral basis. Excluding the impacts of changes in foreign currency, NIKE Brand revenues rose 12 percent with growth in every geography except Western Europe, which was flat due to the negative impact from changes in the timing of shipments and comparisons to last year’s strong World Cup related sales. By category, revenues were up on a currency neutral basis in all key categories except Football (Soccer), which had a challenging prior year comparison given the World Cup last year. Revenues for our Other Businesses increased 10 percent including 2 percentage points of benefit from changes in currency exchange rates, as growth in Converse, Cole Haan and NIKE Golf offset lower revenues at Hurley and Umbro.
* Gross margin declined 270 basis points to 44.3 percent mainly due to higher product costs and a higher mix of off-price revenues sold at a lower margin than the prior year. These factors more than offset the positive impact of growing sales in our Direct to Consumer operations, select pricing actions and the benefits of ongoing product cost reduction initiatives.
* Selling and administrative expenses grew at a slower rate than revenue, up 9 percent to $1.8 billion. Demand creation expenses increased 2 percent to $692 million driven by marketing support for key product initiatives and investments in retail product presentation for wholesale accounts. Operating overhead expenses increased 14 percent to $1.1 billion due to additional investments made in our wholesale and Direct to Consumer businesses.
* Other expense, net was $18 million, comprised largely of foreign exchange losses, primarily from currency hedges. For the quarter, we estimate the year-over-year change in foreign currency related losses included in other expense, net combined with the impact of changes in foreign currency exchange rates on the translation of foreign currency-denominated profits increased pretax income by approximately $32 million.
* The effective tax rate was 24.3 percent compared to 26.0 percent for the same period last year, an improvement due primarily to a reduction in the effective tax rate on operations outside the United States.
* Net income increased 15 percent to $645 million and diluted earnings per share increased 19 percent to $1.36 reflecting a 3 percent decline in the weighted average diluted common shares outstanding.

August 31, 2011 Balance Sheet Review

* Inventories for NIKE, Inc. were $3.1 billion, up 41 percent from August 31, 2010. Inventories were higher compared to a year ago due to higher average unit product cost, growth in total units and changes in currency exchange rates. NIKE Brand unit inventories were higher as a result of strong demand and elevated product deliveries as manufacturing partners have expanded production capacity to more closely align with demand. Also contributing to the growth in NIKE Brand units were strategic pre-builds for key seasonal items with longer production lead times and growth in our Direct to Consumer business. Relative to revenues and futures, current unit inventories are broadly consistent with the levels we reported prior to the 2009 – 2010 economic downturn.
* Cash and short-term investments were $3.7 billion, lower than last year as higher working capital investments reduced free cash flow from operations, while share repurchases, dividend payments and long-term debt payments also increased year-on-year.

Share Repurchases

During the first quarter, we repurchased a total of 7.7 million shares for approximately $649 million as part of our four-year, $5 billion share repurchase program, approved by the Board of Directors in September 2008. As of the end of the first quarter, we have purchased a total of 38.0 million shares for approximately $3.0 billion under this program.

Futures Orders

As of the end of the quarter worldwide futures orders for NIKE Brand athletic footwear and apparel, scheduled for delivery from September 2011 through January 2012, totaled $8.5 billion, 16 percent higher than orders reported for the same period last year. Excluding currency changes, reported orders would have increased 13 percent.

September 23, 2011. Uncategorized. Leave a comment.

Michael Jordan’s Six Rings Golf Bag

His on-court style was unmatched during his career and it looks as if his style has transitioned itself onto the green.

MJ has turned his golf bag into a reminder of what he has accomplished during his tenure in the NBA… just in case you forgot. With its six championship rings displayed proudly above the sneaker he sunk that final shot as a Chicago Bull, this bag would be ridiculously cool to have in ones possession; especially if you play golf.

September 22, 2011. Tags: . Uncategorized. Leave a comment.

Nike LeBron 9 China


LeBron’s footwear relationship with China runs deep. From his Manga style marketing ads for his Chamber of Fear Air Force Ones in 2005, to the most recent white/red colorway we seen on the LeBron VIII (8). With the Year of the Dragon, the Water Dragon to be more specific, for 2012 we have a new conceptual theme for the LeBron 9. An illustrious blue adorns the upper with vivid orange Swoosh and accents with Chinese type printed on the rear pull-tab.

Also seen on the tongue are graphics conducive to the Year of the Dragon theme. 2012 is not for a few months but we may or may not see a release date this year. Stay tuned for solid release information. via NT

September 19, 2011. Tags: , , . Uncategorized. Leave a comment.

NIKE LUNAR HYPERGAMER CAMO/ACTION RED SAMPLE


Via Nicekicks.

Up to this point, we have seen very subtle, two-toned colorways on the Nike Lunar Hypergamer; however, today’s pair, spotted on eBay, is anything but simple. It features a all-over, camouflage upper comprised of different shades of brown, blue and green. Yet, the most eye-popping attribute on this shoe is contrasting Action Red Lunar outsole. Who else would like to see more vivid color schemes on the Nike Lunar Hypergamer? As stated earlier, this size 9 is now available on eBay.



September 19, 2011. Tags: , , . Uncategorized. Leave a comment.

Bape ‘Brick Sole’ Bapesta


Inspired by the red brick sole shoes that have made their way into our closets in the last couple of seasons, A Bathing Ape presents the ‘Brick Sole’ Bapesta sneaker. It comes in four colorways, featuring suede uppers, white Bapesta branding and a red outer gum outer sole.


September 14, 2011. Tags: , , , . Uncategorized. Leave a comment.

Back To The Future – Nike Air Mag – Marty McFly Charity Auction RELEASE!


After breaking news surfaced about the highly anticipated Nike MAG being the topic of discussion at Nike’s special meeting in LA hosted by Tinker Hatfield, it had Internets saying “GREAT SCOTT!”. Michael J. Fox aka Marty McFly has yet to make his big announcement on Letterman but we’re sure this has something to do with it.

Now we have detailed pics of the official Nike Air MAG. The fabled shoe will carry many of the physical attributes of the original but will not be infused with the Power-lacing technology. 1500 pairs will be auctioned off on eBay with proceeds going to the Michael J. Fox Foundation for Parkinson’s Research. Also, just in time for the McFly hype, a large mysterious crate has shown up at Nike’s Flagship store, 21 Mercer. What’s in the crate you ask? The crate does seem big enough to fit a vehicle. A Deloreon maybe?

September 8, 2011. Tags: , , . Uncategorized. 5 comments.

Reebok Zig Encore 2 “Grown Ass Man” for John Wall’s 21st Birthday

Reebok created a ultra-limited Zig Encore 2 “Grown Ass Man” edition to celebrate John Wall’s 21st birthday. Unlike most shoes made for special occasions like this, Reebok is releasing this sneaker to the public. The “Grown Ass Man” Reebok Zig Encore 2 is set to release this Saturday, September 10th.

Releasing at Foot Locker via Crabtree Valley Mall in Raleigh, North Carolina at 8:00am EST. Limited to 21 pairs (size 8-14) and individually numbered handmade cedar box, with laser etching details. Retail is $210 and proceeds go to charity of John Wall’s choice.


September 8, 2011. Tags: , , , . Uncategorized. Leave a comment.