Mike Scarpa, Chief Operating Officer, said, "Integral to our vision is the development of an innovative supply chain for both Direct and Partnered Brands that will deliver on the promise of 'fashion faster.'"
"At the same time, we will aggressively manage our cost structure to increase bottom-line results. Going forward, we are confident in our ability to achieve stronger, more sustainable financial performance, including meaningful long-term growth in revenues, operating margins, earnings per share and return on invested capital."
Direct Brands: The Direct Brands segment will be composed of retail-based, lifestyle brands that have significant multi-channel, multi-national, multi-category growth potential, participate in highly attractive, growing markets, and are expected to generate approximately $2.2 billion in revenues in 2007.
Direct Brands will be managed under a brand-centric, vertical organizational structure that enables the brands to function with their own unique accessories, licensing, wholesale sales, retail management and international functions, as well as brand-dedicated sourcing leadership.
The company plans to aggressively expand the specialty retail store base of the Juicy Couture, Kate Spade, Lucky Brand Jeans and Mexx brands, with a goal of opening over 300 stores, leading to a total door count of more than 800 by year-end 2010.
Other growth drivers for Direct Brands include: category expansion (such as apparel, accessories, cosmetics and kids); highly visible marketing campaigns; brand-centric outlet and e-commerce strategies; and international growth via select wholly-owned stores and third party relationships.
marketing@alchempro.com
