DaytonDailyNews.com

DAYTON — Fashion may be fickle, but comfort trumps all fads.

That's the belief of Dayton-headquartered Warmbat — an emerging sheepskin boot-maker whose brand name is spreading worldwide.

Headed up by native Australian Paul Barclay, Warmbat first stepped onto the scene in 2003 selling its products online.

Around same time Hollywood began developing its thirst for the popular and pricey Ugg sheepskin boots — a Decker outdoor brand — Ugg's sales climbed from $25 million in 2003 to a reported $116 million in 2005.

Realizing an opportunity to gain market share, Warmbat took 18 months between 2005 and 2006 to research and redevelop its product. In August the company relaunched its brand with a revamped boot line and new lines of sandals, sneakers and a casual shoe.

Despite entering the market late in the year, the company beat its projected fourth-quarter revenue of $125,000 by nearly $375,000, Barclay said.

"Back in 2003 people were saying these boots were just a fad," Barclay said. "It took a couple of years, but now the industry is saying OK — sheepskin boots, the whole category is here to stay. When something is this comfortable and practical, it's not a fad."

With plans to open a subsidiary in the Netherlands and expand its footprint in Canada and Germany, Barclay said the company is projecting 2007 revenues to reach upward of $8 million.

"We have gained some significant market share in Canada and our goal is to be the No. 1 brand in Canada and Germany of sheepskin boots," Barclay said.

By pricing Warmbat boots below competitors rates, Barclay said he's poised for even more growth. Warmbat boots start at around $90.

"To be competitive we believe we've got to provide a better value with more features so that the consumer can say, 'Hey this is the best buy,' " Barclay said.

Los Angeles-based Wedbush Morgan Securities analyst Jeff Mintz said Barclay's strategy is on target.

"Ugg created a luxury lifestyle kind of feeling with their product, which for the average person, the boots are pretty expensive — starting at $150 a pair," Mintz said. "I think there is a place in the market for people who are coming in at a lower price point. The style is very, very popular and I don't think it's a fad. As with most trends, the market tends to go up quickly and flatten out, but I think this is a market that can definitely continue to grow."

Warmbat is leasing more space at its Webster Street location and has plans for a future West Coast operation.

"It's really kind of the birth of a brand right now," Barclay said. "People are beginning to see how good it is, and it's becoming a staple part of people's wardrobe, like flip-flops and sneakers — something that everyone over time should or will have."

Contact the reporter at (937) 225-2147 or lbernard@

DaytonDailyNews.com.

Warmbat fast facts

• Maker of Australian sheepskin boots headquartered in Dayton, with distribution center at 7464 Webster St.

• Operates with 21 employees globally and growing

• Projecting 2007 revenues of $5 million to $8 million

• Manufacturers based in China

• Largest market considered to be the U.S., with presence in Canada, Europe, Hong Kong, China and Russia.