Vans and Pacific Sunwear Form Apparel Alliance
Monday March 15, 10:55 am Eastern Time
Company Press Release
SANTA FE SPRINGS, Calif.--(BUSINESS WIRE)--March
15, 1999--Vans, Inc. (Nasdaq: VANS - news) and Pacific Sunwear of California, Incorporated (Nasdaq: PSUN - news) today announced that they have formed a new Limited Liability Company (Van Pac, LLC) to produce and distribute VANS apparel. The apparel line created by the LLC will initially be for sale in Pacific Sunwear and Vans' stores only.
Pacific Sunwear will provide product development, design, sourcing,
quality control and inventory planning services to the LLC, while Vans will contribute design services and license the VANS and TRIPLE CROWN
trademarks and logos to the LLC. Vans will own 51% of the LLC and
Pacific Sunwear will own 49%.
In the future, the apparel produced by the LLC may be sold to non-mall
specialty stores, certain mall retailers and department stores.
''We are pleased to announce this alliance with Pacific Sunwear. By
joining forces with what we believe to be the leading lifestyle apparel retailer for the youth market, Vans has the opportunity to further leverage the strength of its brands and simultaneously generate incremental income'', said Gary H. Schoenfeld, Vans' President and Chief Executive Officer. ''We have had a strong working relationship with Pacific Sunwear for many years and have always been impressed with their concept, knowledge of the youth market and ability to execute. We believe this new venture will be a big success for all parties involved and demonstrates Vans' ability to continually build brand equity and grow the business in an innovative, strategic and profitable way.''(1)
''We are excited to begin this new venture,'' said Greg Weaver, Chairman and CEO of Pacific Sunwear. ''VANS footwear has been a top selling brand at Pacific Sunwear for years. We think their team has done a great job in positioning and marketing the VANS brand and there is a significant opportunity to further extend the name into apparel in new ways.(1) The new line will launch in the Pacific Sunwear stores this summer and we look forward to a mutually beneficial and profitable relationship,'' concluded Mr. Weaver.(1)
Pacific Sunwear is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. The Company currently operates 321 Pacific Sunwear stores, 10 Pacific Sunwear outlet stores and 16 d.e.m.o. stores for a total of 347 stores in 43 states. Pacific Sunwear's website address is www.pacificsunwear.com
Vans, Inc. is a leading lifestyle, retail and entertainment-based company. Vans reaches its 10 to 24 year-old target consumers through the sponsorship of core sports,(TM) such as skateboarding, snowboarding, surfing and wakeboarding, and through major entertainment events and venues, such as the VANS Triple Crown Series, the VANS Warped Tour, the VANS World Amateur Skateboarding Championships, and the world's largest VANS Skate Park. The Company operates 106 retail stores and designs, markets and distributes active-casual footwear, clothing and accessories, performance footwear for enthusiast sports, snowboard boots, Switch(TM) step-in bindings, and outerwear worldwide. Vans' internet address is www.vans.com.
(1)This is a forward looking statement regarding the operations of the
LLC. Actual results of the LLC could vary materially and may be
impacted by a number of important factors, including, but not limited to: (i) the continued strength of the VANS and TRIPLE CROWN brands; (ii) the ability of Vans and Pacific Sunwear to anticipate and react quickly to the rapidly changing fashion tastes of consumers; and (iii) the LLC's ability to compete in the highly fragmented apparel industry with numerous established companies who have significant brand recognition and financial resources. |
