The designers are broken into teams of two to create a design that's larger than life--their models are stilt walkers! In the first ever outdoor challenge, the runway show is held outside in New York for all to see. Kim Kardashian serves as guest judge.

The designers wake up to find New Balance clothing set out to for them and are instructed to put in on and meet Heidi and Tim at a track and field center to hear about the latest challenge. There they learn they will be competing in teams to design a piece inspired by Heidi Klum for New Balance sneakers but in order to be crowned team captain, they must win a different kind of race--on foot! Model Erin Wasson serves as guest judge.