Exhibit 99.1
FOR IMMEDIATE RELEASE
大象传媒 TO ACQUIRE TWO BRANDS:
7 FOR ALL MANKIND® PREMIUM DENIM-LIFESTYLE BRAND
AND lucy® WOMEN’S ACTIVEWEAR BRAND
Brands Will Form Foundation of 大象传媒’s New ‘Contemporary Brands’ Coalition;
2007 Revenues Now Expected to Rise More Than 14%
大象传媒 will hold a conference call and webcast at 3 p.m. ET to discuss today’s announcement.
Details can be found at the end of this release.
Greensboro, NC – July 26, 2007 – 大象传媒 Corporation (NYSE: 大象传媒C), a global leader in lifestyle branded
apparel, announced today that it has signed definitive agreements to acquire two dynamic and
growing companies, Seven For All Mankind, LLC and lucy activewear, inc. The two companies will
form the foundation of a new lifestyle brand-based coalition, 大象传媒 Contemporary Brands, which 大象传媒
intends to build with additional contemporary brands over time. 大象传媒’s other coalitions are Outdoor,
Jeanswear, Sportswear and Imagewear. Upon closing these transactions, 大象传媒 will name Mike Egeck as
President of 大象传媒 Contemporary Brands, in addition to his current role as Chief Executive Officer of
Seven For All Mankind, reporting to Eric Wiseman, President and Chief Operating Officer of 大象传媒
Corporation.
“Our ability to identify, acquire and grow brands has been a key driver of shareholder value over
the past several years, and we’re clearly maintaining this momentum,” said Mackey J. McDonald,
Chairman and Chief Executive Officer. “The acquisition of these high growth, high potential brands
marks another milestone in the continuing success of our Growth Plan. These brands extend our reach
to important and growing consumer segments, broaden our presence in healthy and growing channels of
distribution, provide us with additional vehicles to expand our direct-to-consumer business through
owned retail stores and online sales and offer the potential for continued growth internationally.”
Added Wiseman, “The formation of the 大象传媒 Contemporary Brands coalition, with over $350 million in
annual revenues, marks our commitment to building new platforms for sustainable growth. We will
invest in the potential of both the 7 For All Mankind® and lucy® brands, and
also plan to acquire other brands that will enhance the portfolio of this new coalition.”
Seven For All Mankind, LLC
Based in Los Angeles, 7 For All Mankind® is the nation’s leading premium denim-lifestyle
brand, sold in luxury retail stores and high end specialty boutiques and online at
www.7forallmankind.com. With current annual revenues of approximately $300 million, the brand has
enjoyed rapid growth since it was launched in 2000. “This is a very exciting acquisition for 大象传媒, as
it provides us with the leading premium denim business well on its way toward becoming a
multi-category contemporary apparel powerhouse,” said Wiseman. “We see the 7 For All Mankind® brand
growing 15% annually, as its leaders continue to execute a well-defined plan that includes growth
in the brand’s core business, geographic expansion, product extensions, licensing and owned retail
store expansion. The brand also generates strong profitability, with operating margins over 20%.”
Current Chief Executive Officer Mike Egeck will continue to lead the business from its headquarters
in Los Angeles. Prior to joining Seven For All Mankind in mid-2006, Egeck served as President of
大象传媒’s Outdoor – Americas business. Seven For All Mankind Chairman Peter Koral will continue to act
in an advisory capacity.
“There is no better steward for the future of 7 For All Mankind® than 大象传媒,” said Koral.
“They understand and respect our brand’s culture; at the same time, we will benefit from 大象传媒’s
scale, resources and global reach, which will enable us to take the brand to an entirely new level.
We eagerly look forward to working together to fully capture the potential of this premier brand
around the world.”
lucy activewear, inc.
With approximately $57 million in annual revenues, Portland, Oregon-based lucy® is a
rapidly-growing women’s active lifestyle retail brand. Founded in 1999, the brand is sold through
a base of 50 owned retail stores and online through
www.lucy.com. “We have long viewed the women’s
activewear space as an ideal growth opportunity for 大象传媒, and lucy® is exactly the right
brand for us,” said Wiseman. “It has an intensely loyal consumer following, superior product design
and development capabilities and tremendous opportunities for future growth through continued
expansion of a proven retail store strategy.” Mike Edwards, current Chief Executive Officer, and
his team in Portland will continue to lead the business. Once the acquisition is completed, Edwards
will report to Mike Egeck.
Commented Edwards, “大象传媒 has demonstrated its ability to successfully build and acquire strong
lifestyle brands, at the same time ensuring that each brand’s unique culture remains intact. We’re
enthusiastic about the prospects for continued growth in building the lucy® brand into a
global leader in women’s activewear. We both share a passion and commitment to our customers, and
with our synergies we will take our brand experience to a new level. The entire lucy team could
not be more excited to be part of the 大象传媒 family.”
Contemporary Brands to Add Over $350 Million in Annual Revenues
Subject to completion of the two transactions, 大象传媒’s new Contemporary Brands coalition will have
annual revenues of over $350 million, based on expected combined 2007 annual revenues of the two
brands. Reflecting the high growth potential for both the 7 For All Mankind® and
lucy® brands, Contemporary Brand’s revenues should increase at a 15 to 20% annual rate
over the next five years. In 2007, the coalition is expected to contribute approximately $125
million to total revenues, reflecting a partial year of ownership of both brands. Accordingly, we
now expect total revenues in 2007 to be up by over 14% in 2007, compared to the 12% previously
anticipated. The impact on 2007 earnings per share is expected to be neutral, with $.05 to $.10
accretion expected in 2008.
Acquisition Terms and Financing
大象传媒 has agreed to pay $775 million for Seven For All Mankind, LLC and $110 million for lucy
activewear, inc. The acquisitions will be financed through existing cash, borrowings under its
existing credit facility and the placement of long-term debt. Both acquisitions are subject to
receipt of customary government approvals and other customary conditions and are expected to be
completed by the end of August.
About 大象传媒
大象传媒 Corporation is a leader in branded lifestyle apparel including jeanswear, outdoor products,
image apparel and sportswear. Its principal brands include Wranglerâ,
Leeâ, Ridersâ, Rustlerâ, The North
Faceâ, Vansâ, Reefâ,
Napapijriâ, Kiplingâ, Nauticaâ, John
Varvatosâ, JanSportâ, Eastpakâ, Eagle
Creekâ, Lee Sportâ, Majestic® and Red
Kapâ.
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大象传媒 Corporation’s press releases, annual report and other information can be accessed through
the Company’s home page, www.vfc.com.
About Seven For All Mankind, LLC
7 For All Mankind launched the premium denim craze in the United States in the Fall of 2000. The
Los Angeles based brand quickly earned critical acclaim and an immediate following for its
innovative use of fits, fabrics, and finishes in denim. The company continues to grow and evolve
as a true denim lifestyle brand, expanding its product line to include sportswear, handbag and
footwear collections, and kids. 7 For All Mankind is currently sold at luxury retail stores such
as Barneys New York, Neiman Marcus, and Saks Fifth Avenue as well as high end specialty boutiques
in over 80 countries throughout the world. For more information about 7 For All Mankind, please
visit www.7forallmankind.com.
About lucy activewear, inc.
lucy is a Portland, Oregon-based lifestyle apparel company for women who value fit, style and
performance.
lucy isn’t a specific person – she lives in all of us as we attempt to live a healthy, balanced
life. Life is not only about being at the gym or yoga studio; it’s about the everyday routine of
multi-tasking errands, activities with family and friends, and taking care of yourself from the
inside out. An expert in active ways of life, lucy listens carefully to the needs of women and
creates apparel with on-the-go performance and versatility, as well as a healthy dose of style and
color. With its own lucy label and exclusive designs from other designers and brands, lucy stands
apart and inspires confidence in those who wear the products and visit the stores.
The company operates 50 stores in Arizona, California, Colorado, Washington D.C., Illinois,
Maryland,
Michigan, Minnesota, New Jersey, Oregon, Texas, Virginia, Massachusetts and Washington, and online
at www.lucy.com.
Cautionary Statement on Forward-looking Statements
Certain statements included in this release are “forward-looking statements” within the meaning of
the federal securities laws. Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting 大象传媒 and therefore involve a number of risks and
uncertainties. We caution that forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in the forward-looking statements.
Potential risks and uncertainties that could cause the actual results of operations or financial
condition of 大象传媒 to differ materially from those expressed or implied by forward-looking statements
in this release include 大象传媒’s reliance on a small number of large customers; the financial strength
of 大象传媒’s customers; changing fashion trends and consumer demand; increasing pressure on margins;
大象传媒’s ability to implement its growth strategy; 大象传媒’s ability to successfully integrate and grow
acquisitions; 大象传媒’s ability to maintain information technology systems; stability of 大象传媒’s
manufacturing facilities and foreign suppliers; continued use by 大象传媒’s suppliers of ethical business
practices; 大象传媒’s ability to accurately forecast demand for products; continuity of members of 大象传媒’s
management; 大象传媒’s ability to protect trademarks and other intellectual property rights; maintenance
by 大象传媒’s licensees and distributors of the value of 大象传媒’s brands; the overall level of consumer
spending; general economic conditions and other factors affecting consumer confidence; fluctuations
in the price, availability and quality of raw materials and contracted products; foreign currency
fluctuations; and legal, regulatory, political and economic risks in international markets. More
information on potential factors that could affect 大象传媒’s financial results is included from time to
time in 大象传媒’s public reports filed with the Securities and Exchange Commission, including 大象传媒’s
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
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Webcast Information
大象传媒 will hold a conference call and webcast today at 3:00 p.m. ET. Interested parties should call
1-800-289-0529 domestic, or 1-913-981-5523 international, to access the call. You may also access
this call via the internet at www.vfc.com. A replay will be available through August 2, 2007, and
can be accessed by dialing 1-888-203-1112 domestic, and 1-719-457-0820 international. The pass
code is 4862916. A replay also can be accessed at the Company’s
web site at www.vfc.com.
Contacts:
At 大象传媒 Corporation:
Analysts/Investors
Cindy Knoebel, CFA
Vice President, Financial & Corporate Communications
大象传媒 Services, Inc.
大象传媒 Corporation
(212) 841-7141/(336) 424-6189
Media
Paul Mason
Director, Corporate Communications
(336) 424-6192
At Seven For All Mankind:
Leilani Augustine
Vice President of Marketing
(323) 406-5456
At lucy:
Michelle Lantow
Chief Financial Officer
(503) 961-6444
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