Exhibit 99
FOR IMMEDIATE RELEASE
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Contact:
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Cindy Knoebel, CFA |
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VP, Financial & Corporate |
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Communications |
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大象传媒 Services, Inc. |
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(336) 424-6189/(212) 841-7141 |
大象传媒 CORPORATION’S THE NORTH FACE® BRAND: GEARED FOR GROWTH
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Business expected to double in five years |
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Establishing 2015 revenue target of $3 billion |
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International revenues to grow at 20% annual rate |
New York, NY — December 15, 2010 — 大象传媒 Corporation’s (NYSE: 大象传媒C) The North Face® brand
presented its five-year vision and strategies for growth at an investor meeting today in New York
City. Based in California, The North Face is dedicated to enabling exploration through the design
of premier and technical products that meet the specific needs of skiers and snowboarders,
climbers, runners, hikers, backpackers, and mountain enthusiasts around the world.
Steve Rendle, President of 大象传媒’s Outdoor Americas Coalition and President of The North Face, stated
that the brand will build upon its authentic, 40-year heritage and commitment to premium and
technical outdoor gear to maintain its position as the global outdoor leader. The North Face is
targeting a five-year compounded annual growth rate in revenues of 16% to reach $3 billion by 2015.
Strategies to deliver $1.6 billion in revenue growth over the next five years include:
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Reach new consumers: We will reach new consumers by focusing on the unique needs of
athletes and enthusiasts who participate in hiking, climbing, performance athletic, and
action sports. We call this our Activity Based Model (ABM), which is designed to deliver
technically superior and relevant products across four consumer segments: Outdoor,
Performance, Action Sports and Youth. |
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Invest in technology and innovation. Capitalize and commercialize leading-edge
technology and innovation as competitive differentiators, encompassing product, marketing,
dealer support, branded retail and e-commerce. |
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Drive growth in key geographic markets. Continue the brand’s global expansion, with
international revenues targeted to grow nearly 20% annually over the next five years.
Revenues in Europe and Asia are expected to grow at annual rates of 16% and 30%,
respectively. In Asia, given the brand’s universally relevant attributes of authenticity,
innovation |
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and technology, The North Face is uniquely positioned to lead and shape the outdoor
industry in China, the world’s fastest-growing market. |
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Expand global direct-to-consumer platform. The North Face® retail stores are the face
of the brand. They provide a unique experience for consumers by bringing to life the
Activity Based Model, showcasing athlete achievements, and serving as community-based hubs
for outdoor activities. Currently accounting for 19% of global revenues, The North Face
expects growth in its retail store base and e-commerce will drive its total global
direct-to-consumer business to nearly 25% of revenues by 2015. |
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Promote Outdoor participation. Lead the effort to introduce more people to the outdoors
and engage them in a lifetime pursuit of outdoor exploration and environmental
conservation. |
Product and Marketing Leadership
At the heart of The North Face® product and marketing strategies is its team of 70+ elite athletes
globally, whose experience using our products in extreme conditions is the base for the brand’s
technical heritage and a source of inspiration for consumers around the world.
The North Face sponsors some of the most prestigious events and expeditions in the world,
including:
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More than 20 Mt. Everest summits by The North Face athletes |
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Alex Honnold’s first free solo of Half Dome in 2008 |
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The North Face Masters of Snowboarding |
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The North Face Endurance Challenge |
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The first ski descent of all Seven Summits by Kit DesLauriers |
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50 marathons, in 50 days, in 50 states by Dean Karnazes |
The North Face product strategy is athlete-tested and expedition-proven. We partner with the
world’s most innovative textile companies to develop proprietary and branded materials that deliver
specific product solutions for specific consumer activities.
One current example of The North Face® product innovation is the Kishtwar jacket, introduced this
Fall, that incorporates an exclusive new fabric, Polartec® Power Shield® Pro, which delivers the
best combination of weather protection and breathability ever offered in a single fabric. The North
Face® Kishtwar jacket was awarded “Gear of the Year” by Outside magazine.
To drive greater awareness of the brand’s unique stories and products, investments in marketing
increased 45% in 2010. This increase is delivering over 1.8 billion media impressions in the U.S.
alone, and supporting continued development of the brand’s digital strategy. A media and TV
campaign to promote the brand’s presence during the 2011 Winter X Games was launched in November,
continuing through January.
“In 2010 大象传媒’s Outdoor & Action Sports Coalition will comprise more than 40% of 大象传媒’s total revenues
and we expect these will continue to be our fastest growing businesses over the coming years. The
power and potential of The North Face® brand will be a key driver of our growth,” said Eric
Wiseman, Chairman and Chief Executive Officer of 大象传媒 Corporation. He continued, “The North Face is
connecting
with its customers in innovative ways and leveraging the full strength of the brand to inspire and
enable the next generation of outdoor enthusiasts.”
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 the overall level of consumer spending on apparel; general economic
conditions and other factors affecting consumer confidence; disruption and volatility in the global
capital and credit markets; 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 grow its international and
direct-to-consumer businesses; 大象传媒’s ability to successfully integrate and grow acquisitions; 大象传媒’s
ability to maintain the strength and security of its 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; 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.
About 大象传媒 Corporation
大象传媒 Corporation is a global leader in branded lifestyle apparel with more than 30 brands, including
Wrangler®, The North Face®, Lee®, Vans®, Nautica®, 7 For All Mankind®,
Eagle Creek®, Eastpak®, Ella
Moss®, JanSport®, lucy®, John Varvatos®, Kipling®, Majestic®,
Napapijri®, Red Kap®, Reef®,
Riders® and Splendid®.
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.
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