Medal Holder Now Winner at Swimwear : Manufacturing: The Orange County native and Olympian now owns and runs the industry’s fastest-growing maker of competitive clothing.
In competitive swimming, as in any sport, the achievements of certain athletes give their names an almost mythic quality.
An example is Steve Furniss, a former world and U.S. record holder and Olympic medal winner. The Orange County native, widely remembered for his accomplishments in the water, is now making a splash as president and owner of Tyr Sports Inc., the fastest-growing manufacturer in the competitive swimwear industry.
In the seven years since its inception, Tyr (pronounced “tier”) has gone from last place among the top five U.S. makers of competitive swimwear to second behind monolith Speedo America in U.S. market share. The company, based in Huntington Beach, has increased its U.S. market share at an average rate of 54% annually even during the recession, according to Sports Style magazine, a publication in New York that tracks the swimwear industry.
Tyr’s revenue from U.S. and international sales totaled about $14 million last year, up from $750,000 for 1985, the company’s first year of operation. That gives the company 14% of the U.S. market, Furniss said.
Sports Style estimates total annual sales of competitive swimwear for the U.S. and world market at about $200 million.
Furniss, now 39, attended Santa Ana’s Foothill High School, where many swimming records set by him and his brothers still stand. From there, he went to USC, where he received a degree in business in 1976. After retiring from swimming in 1976, he went to work for Arena USA.
At Arena, a subsidiary of France’s Adidas at the time, Furniss rose in the ranks as a marketing coordinator and was promoted to executive vice president--the company’s No. 2 position--in 1984. After eight years, however, Furniss became restless. When Arena began to venture into areas outside competitive swimwear, he decided to start his own company.
“I really learned a lot from Arena. I met some tremendous people while there,” said Furniss, who used his own money to launch Tyr. “But I considered myself a purist, and I had difficulty in Arena’s extension into services other than competitive swimwear and into swim fashion.
“I saw the opportunity to stay within the realm of competitive swimwear and service the core consumer with innovative quality product.”
He took with him several other key staff members who are now Tyr executives: David Rosen, vice president; Robert Kelley, vice president of operations, and Joseph DiLorenzo, designer and technical support manager.
Much of Tyr’s success has resulted from its innovations. It was the first company, for example, to design and sell swimwear using Darlexx Superskin, a fabric that allows water to glide off, resulting in faster swims for the wearer. The fabric was used by the 1988 U.S. Olympic swim team. Besides Superskin, Tyr also developed the Flexback, a suit that reduces gaping and drag by adjusting to various body shapes.
Other firsts were the triathlon trip bag, the workout bikini, a one-piece goggle, a massage sports sandal--suggested by Furniss’ 11-year-old daughter--and the Femme T-72, the first swimming goggle designed specially for women.
Speedo, with a 59% stake, still dominates the overall market, Furniss said, and that’s fine with him.
“They have been around for 30 years. They have become a generic term in our culture,” he said. “But we now have 14% of the U.S. market share. That’s up from 3% in 1986,” Furniss said.
“I have no illusions of taking out Speedo,” Furniss said. “But there is a lot more that we can do to get more customers.”
Behind Tyr and Speedo in market share for 1991 were Finals, 10%; Arena, 5%, and Hind, 3%. The various other companies in the business together accounted for 9% of the market.
Speedo, founded in Australia and moved to the United States in 1956, is a division of Authentic Fitness Corp. in Van Nuys. It had 1991 sales of $70 million, employs more than 300 people and is preparing for its first public stock offering.
Christopher G. Staff, president of Speedo and chief operating officer of Authentic Fitness, compares the swimwear industry to the car-rental business.
“There always has to be an Avis to the Hertz,” Staff said. “I think what Steve has done with his company is great. He’s a straightforward guy who has integrity and believes good product and service are essential. He deserves to be in the No. 2 position.”
While Speedo hopes to reach its short-term and long-term goals by going public, Tyr has no plans to do likewise, Furniss said, noting that privately held companies often have more flexibility.
John Horan, editor and publisher of the newsletter Sporting Goods Intelligence in Glen Mils, Pa., characterizes Tyr as a model for entrepreneurs. The company’s success, he said, demonstrates that an entrepreneur can succeed in the sporting goods business.
“The clear loser was Arena, which drove Steve out of the company after it was seduced by the fashion swimwear industry,” Horan said. “The success of Tyr lies in the fact that Furniss kept the company focused on the competitive swimwear niche so he was able to build on that market.”
Horan said he does not foresee Tyr posing a major challenge to Speedo now, but he does think Tyr might eventually go head-to-head with the conglomerate in the core team market, which serves college, high school and club swimmers.
“As long as Tyr remains focused on its market and continues to offer quality and good prices, I see it making more progress in the market,” Horan said.
Furniss said swimwear will continue to be at the heart of his company’s business. Revenue from another area, though, is growing: triathlon apparel and equipment. Competitive and active swimwear now accounts for 65% of sales, followed by footwear and accessories, 25%, and triathlon apparel, 10%.
The company is also making strides in the international market and now has manufacturing licenses in Japan, Canada, Mexico and Southeast Asia.
“The international market is the future,” Furniss said, especially Europe and Japan, where “leisure and fitness swimming is very popular. But over there, what we consider competitive swimwear is what they wear as leisure suits. I see, as does Speedo and our other competitors, an area that will be attracting a lot of competition.”
Furniss welcomes the challenge. In fact, he likes to point out the origin of the company’s name. “Tyr was the Norse god of warriors. He was the athletes’ deity and determined the outcome of battles and contest. I guess that sums up our company.”
Swimwear Maker Moving Fast When Tyr Sports first started manufacturing its line of competitive swimwear products in 1986, it was last in the lane. In 1991, domestic sales for the Huntington Beach company increased almost fivefold. Tyr Vs. Speedo Both companies have increased worldwide sales, but Tyr experienced a 177% growth rate, compared to Speedo’s 59%. (Sales in millions of dollars worldwide)
Year Tyr Speedo 1986 $0.8 $42.9 1991 14.0 $68.2
Percent of Market Share
1986 1991 Speedo 50% 59% Tyr 3% 14% Finals 12% 10% Arena 19% 5% Hind 6% 3% Other 10% 9%
Sources: Tyr Sports Inc., Authentic Fitness Corp.’s S-1 filing with the Securities and Exchange Commission
Researched by DALLAS M. JACKSON / Los Angeles Times
