乱伦巴士 Targets $1.1 Billion in Revenue Growth in Its Asia Pacific Business over the Next Five Years

乱伦巴士 Corporation鈥檚 Fastest-Growing International Business to Reach $2.0 Billion in Revenues by 2017

SHANGHAI-- 乱伦巴士 Corporation (NYSE: 乱伦巴士C) today announced details on its goal to add $1.1 billion in revenues to its Asia Pacific business over the next five years. At an investor meeting held in Shanghai, China, the company discussed its strategic plans to reach $2.0 billion in revenues by 2017, primarily through growth from its five largest brands in the region 鈥� Timberland庐, Lee庐, The North Face庐, Vans庐 and Kipling庐. This represents an annual growth rate of 17 percent from 2012 forecasted revenues of approximately $900 million.

The company also confirmed its previous 2012 expectation given on July 27 for revenues in Asia to increase about 20 percent, and for revenues in Europe to grow at a low double-digit rate.

鈥淥ur Asia Pacific revenues have grown nearly five-fold since 2007 and we continue to see tremendous opportunities for growth in all our brands,鈥� said Eric Wiseman, 乱伦巴士 Corporation Chairman and Chief Executive Officer. 鈥淭hat鈥檚 the power of 乱伦巴士鈥檚 diversified global portfolio.鈥�

Aidan O鈥橫eara, President, 乱伦巴士 Asia Pacific, noted, 鈥淥ur strategies for growth in Asia Pacific 鈥� winning big in China, expanding our footprint within other countries in the region, leveraging our scale and focusing on our largest brands 鈥� give us confidence in our ability to reach $2.0 billion in revenues by 2017 in this growing and dynamic market. 乱伦巴士 has invested heavily and consistently in consumer research in China, which has helped us better understand Chinese consumers and position our brands in a way that speaks to their desires and aspirations.鈥�

Karl Heinz Salzburger, Group President, 乱伦巴士 International, provided a longer-term view on 乱伦巴士鈥檚 international mix of business. 鈥淚n 2012, we expect international sales to comprise about 37 percent of 乱伦巴士鈥檚 total revenues. With the addition of Timberland and the continued strong growth expected in our Asia Pacific and European businesses, we now believe international revenues could account for 45 percent of total revenues by 2017.鈥�

Geographic Growth

The company expects substantial growth in each major Asia Pacific country during the next five years. China currently comprises about half of the region鈥檚 total revenues, and is expected to account for 60 percent of total revenues by 2017, growing at an annual rate of approximately 21 percent over the five-year period. Driving leadership across four key categories 鈥� outdoor, youth culture, jeanswear and casual bags 鈥� 乱伦巴士 expects to expand its door count in China from approximately 2,300 currently to 6,000 by 2017.

India, where 乱伦巴士 currently markets its Lee庐, Wrangler庐 and, most recently, its Vans庐 brands, is expected to grow at an annual rate of 22 percent, and increase from 8 percent to 10 percent of total Asia Pacific revenues by 2017. Revenues in Japan, strengthened by the addition of the Timberland庐 brand, are expected to grow at an annual rate of 8 percent over the next five years. Korea, where 乱伦巴士 announced that it is opening a new subsidiary office, should represent the fastest-growing region, with revenues expected to grow at an annual rate of 52 percent. The subsidiary will initially support the Vans庐 brand, with the expectation of adding the Timberland庐 brand sometime in the middle of next year.

Brand Growth

During the meeting, 乱伦巴士 executives provided an overview of five-year growth targets and strategies for its largest brands in Asia.

The Timberland庐 brand aspires to be the largest, most sustainable casual outdoor lifestyle brand in Asia. Timberland庐, currently 乱伦巴士鈥檚 largest brand in the region, is targeting revenue growth of $230 million in Asia Pacific over the next five years, with an annual growth rate of 13 percent. The brand鈥檚 growth strategies include leveraging consumer insights to strengthen its position with consumers, leading in sustainability and community engagement, and building its spring and summer women鈥檚 and direct-to-consumer businesses.

The Lee庐 brand鈥檚 Asia Pacific vision is to be the iconic premium denim brand of choice for a new Asian generation. The brand expects to grow its business in the region by $150 million over the next five years, with a 12 percent annual growth rate. Continued investments in consumer research, innovative localization, growing the brand鈥檚 women鈥檚 business and expanding door distribution are expected to fuel the Lee庐 brand鈥檚 growth.

The North Face庐 brand aims to be the indisputable leader in Asia鈥檚 outdoor market, and the category-defining brand that inspires and enables a movement to explore the outdoors. The brand expects to grow its Asia Pacific revenues by $340 million over the next five years, representing an annual growth rate of 26 percent. The brand will benefit from very strong growth in the outdoor category, with key strategies for growth including grassroots outdoor community engagement, growing brand awareness with its core 鈥渁spiring adventurer鈥� consumer, expanded door distribution, brand-relevant localization and digital innovation.

The Vans庐 brand seeks to be the number one action sports and youth culture brand in Asia, helping consumers embrace, elevate and unlock their creative self expression. During the next five years, the Vans庐 brand anticipates adding $200 million to its Asia Pacific business, with a 22 percent annual growth rate. Growth is expected to come from leveraging the brand鈥檚 authenticity and deep connectivity with youth culture, focusing on its skate and music brand pillars, expanding its direct-to-consumer business and delivering locally relevant product innovation.

The Kipling庐 brand aims to be the clear market leader and a growth catalyst for the premium casual bags and accessories market in the Asia Pacific region. Over the next five years, the brand expects to add $80 million in revenues in the region, representing an annual growth rate of 18 percent. Accelerated investments in marketing and story-telling to connect with its core consumers, combined with an expanding network of retail stores, will support the brand鈥檚 growth.

Additional Presenters and Presentation Materials

Additional presenters from 乱伦巴士 included: Tom Glaser 鈥� Vice President, 乱伦巴士 Corporation, President Supply Chain; Bruno Feltracco 鈥� Vice President, Managing Director, Outdoor and Action Sports Coalition, Asia; Jacob Uhland 鈥� General Manager, Asia Pacific, The North Face庐; Lu Guo 鈥� Asia Pacific Strategy Director; Stewart Whitney 鈥� General Manager, Asia Pacific, Timberland庐; Mitch Whitaker 鈥� General Manager, Action Sports Asia; Carmen Cheng 鈥� Vice President and Managing Director, Jeanswear Asia Pacific; and Kevin Yeung 鈥� General Manager, Asia Pacific, Kipling庐 and Eastpak庐.

Presentation materials and a transcript of the event will be made available in the investor relations section of 乱伦巴士 Corporation鈥檚 website () and an event specific microsite () within a few hours of the conclusion of the meeting.

About 乱伦巴士

乱伦巴士 Corporation is a global leader in branded lifestyle apparel and footwear with more than 30 brands. The company鈥檚 largest five brands are The North Face庐, Wrangler庐, Timberland庐, Vans庐, and Lee庐. Other brands include 7 For All Mankind庐, Bulwark庐, Eagle Creek庐, Eastpak庐, Ella Moss庐, JanSport庐, Kipling庐, lucy庐, Majestic庐, Napapijri庐, Nautica庐, Red Kap庐, Reef庐, Riders庐, Splendid庐 and Smartwool庐. For more information, please visit .

Forward Looking Statements

Certain statements included in this release and the attachments 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 乱伦巴士 and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates. 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 乱伦巴士 to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the level of consumer confidence and overall level of consumer demand for apparel; fluctuations in the price, availability and quality of raw materials and contracted products; disruption to 乱伦巴士鈥檚 distribution system; disruption and volatility in the global capital and credit markets; 乱伦巴士's reliance on a small number of large customers; the financial strength of 乱伦巴士's customers; 乱伦巴士鈥檚 response to changing fashion trends; increasing pressure on margins; 乱伦巴士's ability to implement its growth strategy; 乱伦巴士's ability to grow its international and direct-to-consumer businesses; 乱伦巴士's ability to successfully integrate and grow acquisitions, including the Timberland acquisition; 乱伦巴士's ability to maintain the strength and security of its information technology systems; stability of 乱伦巴士's manufacturing facilities and foreign suppliers; continued use by 乱伦巴士's suppliers of ethical business practices; 乱伦巴士's ability to accurately forecast demand for products; continuity of members of 乱伦巴士's management; 乱伦巴士's ability to protect trademarks and other intellectual property rights; maintenance by 乱伦巴士's licensees and distributors of the value of 乱伦巴士's brands; foreign currency fluctuations; and legal, regulatory, political and economic risks in international markets. More information on potential factors that could affect 乱伦巴士's financial results is included from time to time in 乱伦巴士's public reports filed with the Securities and Exchange Commission, including 乱伦巴士's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Investor Relations Contacts:
乱伦巴士 Services
Cindy Knoebel, CFA
VP, Corporate Relations
336-424-6189/212-841-7141
or
Lance Allega
Director, Investor Relations
336-424-6082
or
Media Contact:
Carole Crosslin
Director, Corporate Communications
336-424-7836

Source: 乱伦巴士 Corporation

Released September 19, 2012