Tyr Sport Inc. is looking for a rematch.
The Huntington Beach-based swimsuit maker had high hopes going into the Beijing 2008 Olympic Games, which served as a televised picture window for the biggest names in athletic apparel to show off their garb.
But the games created a grudge match between Tyr and rival Speedo, part of New York’s Warnaco Group Inc.
In May, Tyr filed an antitrust lawsuit against Warnaco for allegedly trying to monopolize the performance swimsuit market via an improper relationship with USA Swimming, the governing body for the sport of swimming.
After a hearing in December, an Orange County judge will have to decide if Tyr’s case will get thrown out or proceed.
If permitted or not settled, the case could go to trial in November, according to the company’s lawyer Lawrence Hilton, a partner at Irvine-based Hewitt & O’Neill LLP. Until then, Tyr is rolling out products and signing more athletes.
Tyr, the second largest performance swimsuit maker after Speedo, generates more than an estimated $60 million in yearly sales and counts about 70 employees.
The company, started in 1985 by Steve Furniss, a former Olympic medalist and swimmer, sells swimsuits, clothes, goggles, bags, fins, swim training paddles and other gear at more than 1,800 sporting goods stores.
It also sells to distributors, such as Competitive Aquatic Supply in Huntington Beach, which outfits college, high school, club, summer league and other swim teams.
The company is part of New York-based Swimwear Anywhere Inc., which bought Tyr in 1999 and makes swimsuits under license for brands Juicy Couture, Marc Jacobs, Liz Claiborne, DKNY and Beach House.
Tyr is the smaller player in the fight with Speedo and Warnaco, which counts some $2 billion in yearly sales.
“It’s a David and Goliath situation,” Hilton of Hewitt & O’Neil said.
Tyr sued Speedo not long after the company introduced its LZR Racer, a full body suit made with a material that is said to be faster in water than human skin and reduces drag by 8% compared with suits used during the 2004 Olympics.
At Beijing, 23 new world records were set in the LZR Racer and 94% of swimming’s gold medals were won in it.
Swimmers wearing the LZR Racer included Olympic phenom Michael Phelps.
That’s not to say that Tyr’s Tracer Rise did not have its moment at the Olympics.
Athletes wearing Tyr swimwear surpassed nine world records.
Swimmers who wore Tyr during the Olympics include Amaury Leveaux, who wore a Tracer Rise suit and captured the silver medal in the 50 meter freestyle.
U.S. swimmer Matt Grevers wore a Tracer Rise suit and won a gold in the men’s 4 x 100m medley relay.
The Russian Diving Federation, wearing Tyr suits, won two silver medals and a bronze.
“More swimming world records were broken in 2008 wearing Tyr than any other year in the history of our company,” founder Furniss said. “It’s really exciting.”
Still, the buzz surrounding Speedo’s swimsuit exceeded that circulating around Tyr’s.
Not Sour Grapes
Tyr contends it isn’t suing Speedo because of sour grapes, despite what critics have said.
The company isn’t questioning the merit of Speedo’s LZR Racer swimsuit, Furniss said.
“It’s a great suit,” he said. “Speedo is an excellent brand. They’re a good competitor.”
Tyr claims that Speedo’s relationship with the sport’s American governing body and U.S. team head coach Mark Schubert violates antitrust laws.
The complaint alleges that Schubert, who also is named in the lawsuit, and USA Swimming discourage athletes from wearing anything but Speedo and that Schubert is a paid spokesman for Speedo.
“Tyr’s belief is that Speedo’s financial contributions to USA Swimming have caused it to go beyond what its role should be,” Hilton said. “In essence it’s become a marketing arm of Speedo.”
Officials from Speedo and USA Swimming declined to comment on the lawsuit.
Tyr said it isn’t going to let the lawsuit consume it, especially as it’s trying to navigate its way through a weak economy.
Economic Challenges
The economic downturn poses challenges for Tyr and other athletic apparel makers as consumers who are strapped for cash pull back on their spending, Furniss said.
Tyr is targeting lower double digit sales growth this year but acknowledges that it will have to be aggressive to achieve that goal.
“The low hanging fruit has been picked,” Furniss said. “You have to get the ladder now.”
Tyr continues to sign sponsorships with athletes, collegiate teams and swimming federations, Furniss said. Last month, Tyr signed triathlon world champion Andy Potts and the Danish Swimming Federation.
The company is keeping busy by adding products and tweaking its packaging.
This year, Tyr is rolling out packaging for its goggles. It is including “smart charts” on the back of its goggle packages.
The charts are an attempt to solve the problems consumers have when buying goggles since they act as a guide that helps consumers select goggles according to their fitness levels and needs without having to open the package and trying them on.
Triathlons will be a big growth area for Tyr, Furniss said.
Tyr recently nabbed a license to make clothes for the Ironman Triathlon World Championships.
“There are still a lot of places that we need to hit,” Furniss said.
