Vans, Inc.'s Board Authorizes Stock Repurchase Program
SANTA FE SPRINGS, Calif.--(BUSINESS WIRE)--Feb. 4, 1998--Vans, Inc. (NASDAQ: VANS - news), announced today that its Board of Directors has authorized the Company to utilize up to $5 million to repurchase shares of the Company's outstanding common stock.
Walter E. Schoenfeld, Vans' Chairman, stated, ''We continue to believe that the VANS brand is increasingly well-positioned in the market place and that this is an appropriate step at this time.''
Commenting on the recent bankruptcy of the 110-year old Kuwata Company, a large customer of Vans' Japanese distributor, Mr. Schoenfeld stated, ''Even though we will have no direct financial exposure, this event, and the continued slowdown in the rest of Asia, detracts from our otherwise growing and profitable international business, as well as the efficiency of our Vista, California manufacturing facility.''
Mr. Schoenfeld concluded, ''The Pacific Rim, as well as the rest of the world, has become a very important market for Vans. As we grow to become a serious player in these markets, there always is the possibility of temporary difficulties as in the Orient today. Despite this, we remain on track for another record year, and we look forward to continued growth.''*
Any purchases under the program will be made periodically in the open market pursuant to Rule 10b-18 under the Securities Exchange Act of 1934, or in privately negotiated transactions as deemed appropriate by the Company. Purchases will be funded through working capital and borrowings under Vans' line of credit.
Vans, Inc. is a branded manufacturer, wholesaler and retailer of active-casual footwear, clothing and accessories, and performance footwear for enthusiasts sports. Products are sold through a network of independent and national retailers, internationally through distributors for 80 countries and Company subsidiaries in the United Kingdom, Mexico, Brazil and Argentina, and through 92 Company-owned stores and factory outlets.
This sentence is a forward-looking statement. The Company's growth may be affected by a number of important factors, including but not limited to: (i) the occurrence of downward trends in the U.S. economy, foreign economies and the footwear industry, or the occurrence of events that adversely affect the world economy in general; (ii) changes in the fashion preferences of the Company's target customers and the Company's ability to anticipate and respond to such changes; (iii) increasing competition in all lines of the Company's business from both large, well-established companies with significant financial resources and brand recognition, and smaller niche competitors who market exclusively to the Company's target customers; (iv) the cancellation of orders which could alter bookings numbers; and (v) the fluctuation of foreign currencies in relation to the U.S. dollar. These factors, and others, are discussed more extensively in the Company's Annual Report on Form 10-K for the year ended May 31, 1997, which is filed with the Securities and Exchange Commission.
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Contact:
VANS, INC.
Walter E. Schoenfeld
Chairman
562/565-8426
or
Morgen-Walke Associates
Christine DiSanto/Jim Cappuccio
Press: Miriam Adler
212/850-5600 |
