WWD Nautica Milestone at 30
Transcription
WWD Nautica Milestone at 30
MODEL: THIJS M AT FUSION; STYLING BY ALEX BADIA WWDMilestones SECTION II NAUTICA AT 30 The company built on an affinity for a rugged, seafaring life has evolved into a full lifestyle collection with product from tailored clothing and women’s wear to accessories and home goods — but has never lost its love of the water. PHOTO BY ELI SCHMIDT Nylon jacket, polyester polo shirt and cotton and nylon pants. KAREN MURRAY AT THE HELM ■ THE LICENSING JUGGERNAUT ■ DAVID CHU’S NEXT CHAPTER WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Captain’s Log David Chu in 1987. Swimwear, 1998. A look at Nautica’s three-decade voyage. 1984: Nautica hits $2.5 million in sales. ■ State-O-Maine purchases the Nautica brand for $500,000. 1991: Brand expands into men’s sleepwear and loungewear. 1993: State-O-Maine is renamed Nautica Enterprises. 1994: Eyewear is introduced. 1996: Men’s jeans, Nautica Competition and Nautica Kids make their debut. ■ Nautica Voyage, a men’s fragrance, is introduced. 1997: Women’s swimwear and men’s tailored clothing are launched. 1998: Nautica expands into home. 1999: Women’s sleepwear and Latitude/Longitude fragrance are introduced. 2000: Women’s jeans are added. 2001: The company opens a flagship in Rockefeller Center in New York. 2002: Men’s underwear is launched. 2003: VF Corp. purchases Nautica for $600 million. ■ Chris Heyn is named president of Nautica Sportswear. 2004: Chu exits Nautica. Rockefeller Center store closes. 2005: Infant and juvenile bedding is introduced. ■ Navigate Life campaign launches; 20th store in Italy and 150th store in China open. 2006: Women’s sportswear and Voyage fragrance are added. 2007: Karen Murray is named president of Nautica. ■ My Voyage fragrance is introduced. A beach look from summer 2001. 2011: Pure Nautica Discovery fragrance is added. ■ The brand sponsors the Prudential Center in Newark. ■ The Keys furniture collection is added. 2008: E-commerce site is launched; luggage is added. 2009: Oceans fragrance launches. ■ Outdoor furniture is added and indoor furniture is relaunched. ■ Men’s and children’s footwear and women’s outerwear are added. ■ Nautica becomes the largest corporate sponsor of Oceana. Advertising is brought in-house. 2010: Pure Nautica fragrance launches. ■ An interactive blog called Nautica360 and social media platform make their debut. ■ The company launches Ocean to Ocean marketing campaign. A look from 1993. 1993 PHOTO BY ROBERT MITRA; 2000 BY DAVID TURNER PHOTO BY NICK MACHALABA 1983: David Chu launches Nautica with six pieces of men’s outerwear. The Rockefeller Center store, 2001. 2012: Give Change to Make Change ad campaign is launched. ■ Brand launches in South Korea and signs licensing deal for India. ■ Nautica becomes a sponsor of Charity: Water. ■ Aqua Rush men’s fragrance launches with Coty. Women’s jeans, 2000. 2013: Nautica marks 30 years in business with a special anniversary collection. SOURCE: NAUTICA AND WWD ARCHIVES 2 4 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Guiding the Growth With a focus on performance, international expansion and the relaunch of a women’s collection, Nautica chief Karen Murray is firmly at the helm. By David Lipke NAUTICA IS MARKING 30 years on the oftentimes choppy seas of retail — and the business is in ship-shape condition today, with sales on the upswing and ambitious initiatives bolstering the brand. The company, a unit of mammoth VF Corp., continues to expand its global footprint with international partners and ramp up its e-commerce goals, and is relaunching a wholesale women’s sportswear business this season as well as plotting a return to full-price freestanding retail in the U.S. The multiprong growth plan comes against the backdrop of a yearlong marketing campaign that will celebrate Nautica’s three-decade anniversary, which the company is heralding as “30 Years on the Water.” The achievement will be touted in everything from advertising and window displays to shopping bags and Nautica product itself that bears special markings on labels and hangtags with the rubric “Since 1983.” “It’s a true testament to the strength and relevance of the brand. Nautica is internationally recognized and worn — and it also incorpo- Today, Nautica rings up $1.5 billion in annual retail sales in 75 countries, including all licensed categories. According to VF estimates, Nautica is the third-largest men’s sportswear collection brand in U.S. department stores. “It’s a wonderful milestone for the brand. What it speaks to is that it stands the test of time,” said Karen Murray, president of VF’s sportswear coalition and the executive with direct oversight of Nautica. “At the end of the day, it says a lot about this type of product and look. Whether you call it nautical or red-white-and-blue, this clean, classic, colorful and bold look really resonates with men.” For the past four years, Nautica has posted compound annual growth of about 6 percent a year, mostly from the men’s sportswear business, according to Murray. “We’re planning more accelerated growth for 2013. Our outlet business is really gaining momentum, as well as ecommerce. Overseas, growth in international territories is being driven by China, Latin America and Israel in the Middle East,” she added. ·· We’re planning more accelerated growth for 2013. Our outlet business is really gaining momentum, as well as e-commerce. ·· Nautica will crown its anniversary publicly on Friday with a big-budget runway show at Lincoln Center during New York Fashion Week. “We usually do a smallerscale presentation. This is a bit bigger and more of a celebration. It’s been five years since we did a runway show,” said Murray. “We’ve had great momentum with the brand for the past three to five years. Every year gets better. We are proud of what we achieved. That will come across loud and clear when anyone looks at the runway.” According to VF’s most recent 10-Q filing, operating margin in the sportswear coalition improved to 10.3 percent in the first nine fiscal months of 2012, up from 9.7 percent, on the strength of a greater percentage of revenue from higher-margin direct-to-consumer sales and a declining percent- age of sales from lower-margin distressed product. “The charge when I came in was to really make sure that this core men’s product line was reestablished,” said Murray, who joined VF Corp. as president of the Nautica business in 2007 and was promoted to president of the sportswear coalition in 2008. “I would say each year it’s improved. We’re at the point right now where for the past two to three years, we are putting on nice sales increases PHOTO BY KYLE ERICKSEN — KAREN MURRAY rates the latest design technologies while still staying true to its roots and maritime heritage. That’s what consumers responded to 30 years ago, and still do today,” said Eric Wiseman, chairman and chief executive officer of Greensboro, N.C.-based VF Corp. “What began as a collection of outerwear 30 years ago has become a leading global lifestyle brand representing the finest in men’s, women’s and kids’ apparel and accessories, as well as a complete home collection. From eyewear to swimwear, home to watches, today Nautica has 58 licensed categories, all of which reflect the brand’s commitment to quality, integrity and service.” VF Corp. acquired Nautica Enterprises Inc. in 2003 for $600 million, establishing it as the anchor of a newly established sportswear coalition. and we are more profitable. Our department store business is very strong and our global business is very strong. Our business online has traction now and is growing at 50 percent gains each year. The reason that it’s got such momentum is that we have been very consistent and offer strong price-to-value on all our products. That’s key.” Nautica’s key competitors in department stores are Polo by Ralph Lauren and Tommy Hilfiger, with the trio usually grouped together stylistically as the traditional “red-whiteand-blue” brands. “If you look at collection floors in the U.S., we are always surrounded by Tommy and Polo. The other brands are more updated or contemporary, such Calvin Klein, Kenneth Cole and Perry Ellis. They focus on rope-taupe-andbeige and grays and blacks,” explained Murray. “We all share a space, but our lane is with the classic brands.” {Continued on page 6 } 6 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Guiding the Growth {Continued from page 4} Nautica offers a value proposition compared to Polo, with prices across the board that are 20 to 25 percent lower than the Ralph Lauren brand. Pricing is on par with Tommy Hilfiger in many product categories. “Polo has always been the premium position. We look at core categories and we try to get the sharpest price we can. We have a pair of jeans, a woven and a knit shirt, each for $50, and we have a sweater program at $45 yearround. Of course, we also have elevated product that sits above that. But it’s about strong product, quality made, at a strong price value,” said Murray. To differentiate itself further from its competitors, Nautica has embraced a performance stance on many styles, incorporating wicking properties and extradurable fabrics to its designs. “We’ve added those characteristics in core product like pants and woven shirts. They are wrinkle-resistant, they wick moisture, travel easily and are comfortable. We do this in wovens and knits, our performance fleece and in our outerwear. We call out all these additional benefits, and have been able to differentiate ourselves from the pack and find a ‘white space’ on the men’s collection floor,” said Murray. Last year, Nautica made a big change to its knit polo shirt — which it calls a deck shirt — switching from an all-cotton fabric to a performance fabric that is 60 percent cotton and 40 percent polyester. It was a big gamble, as the short-sleeve knit category represents almost 30 percent of all Nautica sales. The new shirt looks and feels like cotton but has the performance attributes of a synthetic, such as moisture wicking, wrinkle resistance and holding up to washing better. “It was a big leap for us, but it worked. It’s been a home run,” said Murray. “Continuing to deliver on the performance platform is key. It differentiates the line, and we know the customer really values these performance features.” Knits, woven pants, fleece, swim and denim have been top category performers for Nautica in recent seasons. Outerwear, an important category historically for the brand, has been more difficult, due to macro weather trends. Consumers are increasingly choosing lighter-weight alternatives to heavy coats, said Murray. “Outerwear is a category that seems to shrink a little bit every year, not just for us but the entire marketplace, due to global warming. That is a category I wish were stronger,” she observed. “Other businesses are infringing on that and taking market share, like knit active or performance fleece or sweaters or blazers or completer pieces. All of those items are being worn as outerwear. The outerwear season is effectively November and December and after Christmas those items are half the price, so it’s not a money-making proposition for anyone at this point. It’s a tough business.” In the U.S., Nautica is wholesaled in about 1,500 department store shops with partners including Macy’s, Lord & Taylor, Dillard’s, Bon-Ton, Belk, Boscov’s, Stage Stores and Peebles. In Asia, the brand is sold at 397 points of sale; in Latin America, 302; in Europe, 54; in India and the Middle East, five, and in Canada and Australia, 153. Macy’s is Nautica’s single largest wholesale partner and has carried the brand since its first season 30 years ago, when it was founded by designer David Chu. The collection is versatile enough to sell in smaller as well as larger Macy’s doors around the country, said Jeff Gennette, chief merchandising officer for the retailer. business with. She is really rooted in great product and she understands the sell-in as well as the sell-through.” The Nautica customer at Macy’s tends to skew older, with more than 50 percent of sales to consumers ages 40 to 59. The customer base is multi-cultural, with brand appeal among AfricanAmericans, Hispanics and AsianAmericans, Gennette pointed out. Outside of wholesale, Nautica operates 87 outlet stores in the U.S., with that number expected to remain relatively stable in the near future. “We don’t really have plans to grow the outlet business in the U.S.,” said Murray. “If there’s an opportunity here and there in a premium center, we’ll look into it. We want to grow the busi- “It’s got very strong core items that are unique to the Nautica brand that work for smaller doors but it also has enough fashion and breadth to work in larger flagships. It’s a line that works in many doors in all parts of the country. It used to be mostly Eastern Seaboard, but now it’s strong all over, including the West Coast,” he said. Gennette recalled that the brand suffered somewhat years back when it became too focused on key items and thus too commodity oriented. “Under Karen’s leadership, the brand has gone back to its roots and its reason for being,” he explained. “I think the line is looking very fresh and relevant. We just finished a strong year together. I think Karen is one of the smartest leaders of the brands that I do ness overall but not necessarily open many more stores.” The company is planning to go into full-price retail, according to an internal brand overview, but specific details are unavailable at this point. “I would tell you that we are constantly exploring the opportunity domestically and we’ll have much more to share with you later this year,” explained Murray, noting that she believes full-price retail would benefit the brand. “We are a company that does things methodically, and we want to make sure we’re doing it right. We are doing our due diligence, and we’ll be ready to talk about full-price retail in another quarter or two.” Nautica previously operated a 14,000-square-foot flagship store at 50 Rockefeller Plaza, which it opened with much fanfare in April 2001 but shuttered in August 2004, following its acquisition by VF. The store was originally expected to ring up sales of $10 million to $12 million in its first year, Nautica’s 30th anniversary campaign. but just six months after its debut, Nautica was already reporting fullprice selling below expectations. About 29 percent of total Nautica sales are from international markets, with that number growing from 20 percent four years ago. “I think we should keep growing the international part. The more we can grow overseas the better it is. I would have no problem if it was 50/50,” said Murray. “But before we embark on new territories and spaces, we do consumer insight work. Right now we are doing consumer segmentation to help us guide those decisions on which markets to enter.” China, Latin America and the Middle East are Nautica’s biggest markets around the world, in that order. The company recently entered Russia, Turkey, Brazil and South Korea for the first time. In South Korea, the brand has staked out a more premium positioning with local partner Amanex, with a focus on technical performance wear. “It’s more elevated performance product than what is in the U.S. They have some of the sportswear from the U.S. but the high-end performance pieces that are $500 and $600 is exclusive to Korea now,” Murray pointed out. “None of the product is in the U.S., but there is a conversation about us reverse-selling it here. I think some of these items would do very well online.” Overseas, there are 62 freestanding Nautica stores in Greater China, 38 in the Middle East, 45 in Southeast Asia, 44 in Mexico and Latin America, 11 in South Korea, two in Australia and two in Europe. The stores are operated by Nautica’s network of 21 international license partners. Wholesale distribution internationally is in about 1,600 department and specialty stores. In license categories, Nautica has 19 licensees in 58 categories, including: Coty for fragrances; ES Originals for footwear; Essex for umbrellas; Fishman and Tobin for children’s apparel; Fownes for cold-weather gear; Levy Group for men’s tailored clothing and topcoats, men’s mainfloor outerwear and women’s topcoats; Raj for women’s swimwear; Marchon for eyewear; PVH for neckwear; Randa for luggage and backpacks; Royce for hosiery; S. Cohen for tailored clothing in Canada; Li & Fung for dress shirts; Swank for belts and small leather goods; Timex for watches; Crown Crafts for infant and juvenile bedding; Lifetime Brands for tabletop; Louisville for utility bedding; and Revman for fashion bedding and bath. (For more on licensing, see pages 28-30.) Annual wholesale sales from all Nautica licensees were approximately $500 million in 2012. This year, Nautica is relaunching its e-commerce site with a focus on a streamlined shopping experience and richer brand storytelling. The company has set a goal of generating 10 percent of all sales via e-commerce within the next three years. Asked where that figure stood today, Murray responded that it’s “not where we want it to be.” The company first launched its e-commerce business at nautica.com in 2008 with a full assortment of men’s, women’s and children’s apparel and accessories. {Continued on page 8} Celebrating 30 years o n t h e W AT E R 8 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Guiding the Growth {Continued from page 6} Growth is being driven in China and Latin America. Here, a Beijing store and, right, a Panama location. tives, see page 34.) “One of the brand’s greatest strengths is providing a consistent image of who the Nautica consumer is, representing their deep connection with the water,” said Wiseman. “The brand has really solidified its position around being a brand for those who live their lives on or near the water, and a big part of that connection with consumers has been forged through our Ocean2Ocean campaign.” That campaign launched in 2010, with storytelling that found inspiration from the people and places along America’s coastlines. “Design and marketing teams traveled together — lit- ·· Nautica conducted a consumer intercept test to evaluate the performance of the shoppable airport billboards, learning that while consumers were familiar with QR codes, they did not like using them. It turned out the billboards did little to drive actual sales, but were highly successful at driving brand awareness and equity. “This was something we would not have been able to determine from sales data alone,” said Murray. Other recent research included a listening lab to help guide the redesign of the e-commerce site. This revealed that consumers were surprised at the breadth of offerings and competitive prices on the site. Another shop-along study found that men particularly like mannequins as part of their shopping experience to help them easily figure [Nautica] incorporates the latest design technologies while still staying true to its roots and maritime heritage. — ERIC WISEMAN, VF CORP. PHOTO FROM WWD ARCHIVE In another relaunch, Nautica is trying its hand at women’s sportswear again, following two earlier failed attempts. The company already offers some women’s sportswear within its own outlet stores and via international license partners in overseas markets. However, the brand has had difficulty gaining traction in the U.S. wholesale channel in the category. “It’s a bit of a sore spot as it was launched twice unsuccessfully before,” said Murray. “I think we weren’t priced competitively and the line was the wrong expression of the brand for the female audience — it was boxy and men’s wear-oriented. Today, we are using fluid fabrics that drape like silks and Modals. It’s a big change. Our offering is very feminine. It’s quite sexy and fitted.” This latest incarnation of women’s sportswear is launching this month at Belk, Dillard’s and Lord & Taylor, with additional stores to come. “It’s product that was available overseas, but we are expanding it for the U.S. market and making it more extensive,” said Murray. “It’s important for any successful global brand to have a dual-gender presence.” The in-house sportswear will join an existing in-house women’s sleepwear business and licensed women’s outerwear and swimwear. An advertising campaign launches this month to trumpet the reintroduction of Nautica women’s collection sportswear to U.S. department stores. “We still have work to do to realize the potential in women’s sportswear,” said Wiseman. “We’re moving cautiously but deliberately here, but I’m really encouraged by the progress we’re making and the success we’re seeing.” While nascent, Nautica women’s sportswear could eventually outsell the men’s business. “At the end of the day, a lot more women’s apparel is sold than men’s in department stores, so I can’t see why that wouldn’t be true for Nautica,” said Murray. The men’s focus of the brand up until now has stemmed from its roots in outdoor and sports, particularly with connections to the sea. To that end, the company today is the title sponsor of two high-profile triathlons — the Nautica Malibu Triathlon and the Nautica South Beach Triathlon. Since 2009, Nautica has also been the largest single sponsor of Oceana, the ocean conservation organization. In 2012, Nautica became a sponsor of Charity:Water, which raises funds to bring clean drinking water to developing countries and communities. (For more on philanthropic initia- well as the North American business of Kipling, with the latter comprising about one-fifth of the group’s revenues. “Eric Wiseman has given me a very long leash, but at the end of the day, it’s a financially driven company and we have checks and balances to make sure that I’m doing the right thing,” said Murray. “[We utilize VF’s] corporate resources in the areas of systems and strategy. There is a consumer insights team there, headed by Stephen Dull, that helps me make more informed decisions.” Brands within VF are encouraged to share best practices and innovations with each other. “We share all the time. I am welcome to fly out and sit in the fabric department of The North Face or fly up to Timberland and talk about strategy. VF has a huge denim capability, and I can erally from ocean to ocean — finding unique nautical inspiration,” explained Murray. “The product reflected these discoveries, and marketing focused on real people that are truly living the Nautica life. Their stories were told online, in print and through social media.” Nautica launched an interactive blog called Nautica360 in 2010 and became active on Facebook, Twitter, YouTube and Flickr. The brand now has garnered three million fans on Facebook. The company conceives and executes its advertising campaigns inhouse, having exited a relationship with Laird+Partners in 2009. “Nautica was so focused on ‘man on a boat.’ It was a very lonely guy on a boat. It’s not all the brand is about. We are about families and dual gender and friends and connection,” said Murray, whose in-house team has guided the brand toward imagery of men, women and families together. As president of the sportswear coalition, Murray overseas Nautica as go down to Lee and talk about a denim process. Conversely, we have a great relationship with Macy’s, so they might want to talk to me about that,” Murray pointed out. VF holds an annual internal conference dubbed VF Max, staged at locales from the MIT campus in Cambridge, Mass., to New York City, where leaders from the company meet with outside thinkers and innovators. “We’ve had Robert Redford speak to us, and we had Julie Taymor talk about the challenges of staging the Spider-Man musical. It’s about how to solve problems and innovate and do something different and unique,” Murray recalled. “Who would think that you could learn something from Spider-Man?” VF Corp. is known for a researchdriven approach to strategic and business decisions. At Nautica, market-research practices are leveraged across the entire spectrum of business processes, including understanding consumers’ evolving needs, optimizing communications, maximizing the effects of spending and guiding innovation. This past holiday season, Nautica invested in shoppable billboards at the two New York City airports, John F. Kennedy International and LaGuardia. Shoppers could scan items from the billboard on their smartphones via QR codes, which would bring up the item from the Nautica e-commerce site. ·· out entire outfits. A market-mix analysis showed the strong benefits and synergy of spending on social and digital marketing in tandem with more traditional advertising buys. “It was fascinating to learn how the multiple consumer touch points really help to strengthen our connection with our consumer,” said Murray. As a unit of VF, Nautica is part of a diversified portfolio that stretches across outdoor, denim, sportswear, contemporary, footwear and accessories. “VF’s overall growth strategy is based on actively managing a highly diversified global portfolio of leading lifestyle brands. Nautica’s diversified product mix and global distribution is perfectly aligned with that strategy. The brand is stronger today than it has ever been and [has] many growth opportunities,” said Wiseman, who earlier in his career oversaw Nautica when he held Murray’s current position. “What stands out was [how] we all felt about bringing Nautica into the VF family of brands and taking it to its next level of growth,” he recalled of his time at the helm of the Nautica business. “Nautica was one of the first acquisitions VF made, once we put into motion our plan to transform the company with the addition of more lifestyle brands, so it really was a milestone for us.” 10 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Young Man and the Sea CHRIS COX IS passionate about the outdoors. And being Nautica’s vice president of design and creative allows him to indulge that passion every day. Born and raised in New Jersey, Cox grew up around the water, summering at Long Beach Island, a barrier island off the state’s mainland. “My brother was a lifeguard and in a band — I worked,” Cox said with a laugh. “But I lived vicariously through him.” But it wasn’t all work and no play. When he wasn’t toiling away for some extra cash, Cox spent time enjoying the sand and the surf as well, skills he calls upon to create the company’s men’s collections every season. “I have a really active life outside of the office,” said Cox, who enjoys surfing, kayaking, mountain biking, tennis and soccer, among other sports. “And this brand’s large point of differentiation is its performance aspects and the fact that it was built around the water.” The company says its spinnaker logo is “a symbol of adventure, action and classicism.” This unwavering devotion to the water runs deep, and impacts everything Cox produces for the label. He travels frequently to coastal locations around the country to keep his finger on the pulse of the Nautica customer. Those excursions have taken him from the Great Lakes to Oregon, New England to Florida and California, and while the communities and climates are different, there’s a certain commonality. “I’ve seen a large diversity of people, cultures and lifestyles,” he said, “but water is what brings them all together.” And while he keeps up with the latest fashion trends emerging from the runways of Europe, he finds his travels around the U.S. to be more useful inspirations for the Nautica brand because the company’s association with the water “is such a strong part of who we are.” While his personal activities are a perfect match for the brand, it was his design talent that appealed to Karen Murray, president of VF’s Sportswear Coalition, which oversees Nautica. Before joining Nautica five years ago, Cox spent 11 years at Tommy Hilfiger, overseeing everything from men’s outerwear, swimwear and bottoms to denim and sportswear. After leaving Hilfiger in 2004, he joined Victorinox as senior vice president of design and creative director. “Karen went to HR and said she wanted to hire the guy who was designing Victorinox,” Cox related. “We had actually had a conversation when I left Tommy so she knew who I was and my career path. So I met with Karen and everything fell in line.” He came on board as vice president of men’s design in February 2008, and later that year was elevated to his current position, succeeding Miriam Lambert. “It’s been a fun run,” he said. “There have been a lot of challenges and a lot of rewarding moments.” His primary goal upon joining the company was to reconnect Nautica with its roots and “get back to the core essence” of the brand. “When I came in, we didn’t really stand for anything anymore,” he said. “We were all over the place and we were chasing something that wasn’t what the brand is all about.” Cox dove in, researching the history of Nautica and where it had enjoyed the most success over the years. “I did a ton of brand work,” he said. “I asked, Who do we want to be?” Answering that question required “focus, belief and great creativity,” he continued. “You have to believe in who you are, put a stake in the ground and go for it.” Cox said he’s never felt restricted by Nautica’s single-minded mission — in fact, just the opposite. “When you put blinders on and really focus on the end goal, you can go forward — as long as it goes back to the brand’s point of view,” he said. That point of view needs to be consistent across all categories of product that sport the Nautica name. As a result, Cox works with the company’s large cadre of licensees to Two of ensure that they’re Cox’s on board with the favorite mission as well. The design projackets. cess starts with the company’s internal sportswear design team and then Cox “interfaces” with the outside companies that produce everything from tailored clothing, dress shirts and neckwear to shoes and cold-weather goods. The largest companies come to Nautica’s office on a quarterly basis to run through the color palette and print choices for the season to ensure everyone is on the same page. But Nautica’s bread-and-butter is still its men’s collection sportswear, 95 percent of which is designed in-house. The fall incarnation of the collection will make its debut on the runway during New York Fashion Week on Friday. Key pieces will include furtrimmed technical parkas, nautical utility leather jackets, hand-knit cashmere fisherman sweaters, slim brushed cargos and slim wool knit pants. As part of the mix, Cox will unveil Chris Cox oversees all of the men’s design for the brand. the latest pieces of the Black Sail collection, which is the brand’s most elevated product. “It’s more of our pinnacle line,” Cox explained. “It’s more directional and innovative. It’s our tease about where we believe we can take the brand.” And this year, its 30th anniversary, Nautica is also offering a series of capsules throughout the year celebrating the milestone. For spring, Cox designed “more modern interpretations of vintage sailing pieces,” including waterproof sailing jackets, zip cable shawl cardigans with windblock linings and full-zip hoodies. And for fall, the celebration will continue with similarly themed pieces. “The America’s Cup finals will be in San Francisco in September,” Cox said, “so we’ll also be playing off of that.” But in everything Cox designs, attention to detail remains paramount as Nautica seeks to capture “the essence of an active, adventurous and spirited lifestyle.” Cox admitted: “I’m a gear-head. Growing up, I loved to see how things work.” He translates that into his designs for Nautica by constantly asking “what’s next, what’s warmer, what’s cooler, what’s drier? I’m driven by that — whether it’s in hard goods or soft goods.” So which items does Cox believe have been his most iconic during his tenure at Nautica? “I’m a giant turtleneck fan,” he said. “And this fall, we’ll be celebrating the fisherman’s sweater.” In addition, he pointed to the down parkas with fur trim and “detailed bottoms with a great wash,” as key. “And pant fit is really important to me.” Cox said the sportswear design team creates a collection every year that is “so vast, it’s hard to pick one thing. In any given quarter, there are 800 to 1,000 sku’s and we manage three seasons at once.” He said such a work load would be impossible without the help of a strong technical and product-development team. And each of the company’s designers, some of whom have been with the brand since founder David Chu was still on board, is responsible for all the technical bells and whistles on each garment they create. “We don’t just design it and hand it off,” he said. “We control everything about it, including making sure it’s [priced] properly. Owning the details is very important — today’s consumer expects so much.” PHOTO BY GEORGE CHINSEE Creative director Chris Cox channels his love of the outdoors into Nautica’s lifestyle offerings. By Jean E. Palmieri EL PALACIO DE HIERRO CONGRATULATES NAUTICA ON THEIR 30 YEAR ANNIVERSARY 12 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES David Chu: Then and Now DAVID CHU always had an affinity for the water. And it was this love of the ocean that prompted the designer and entrepreneur to create the Nautica label in 1983. “I used to travel to the islands and loved being on the beach in St. Maarten and the Bahamas,” Chu said in a recent interview at his town house in New York’s Flatiron District. “I found the island life cool and relaxing and being around the ocean was magnificent.” Even so, the idea of creating a nautical-themed apparel brand was the furthest thing from his mind growing up. In fact, Chu, who was born in Taiwan and immigrated to the U.S. at age 13, had designs on being an architect, not a designer. “I went to FIT, but I didn’t know I’d be in the fashion industry,” he said. “I actually studied design by accident. I thought I’d be an architect or in sales and marketing. But I took an illustration class one summer and found myself in fashion design.” After he graduated from college with a degree in fashion design, Chu traveled back to Taiwan and launched an apparel business with friends, “but it failed miserably,” he recalled with a laugh. “But I’m glad I failed early. It’s better to fail when you’re 23 and young and stupid than at 35 or 40.” Chu returned to the States and joined Kayser-Roth for five years. Then, in 1983, his entrepreneurial spirit surfaced and Chu whipped up a small collection of six colorful men’s jackets that incorporated fashion and function. This collection spawned a new business that he named Nautica, after the Latin word “nauticus,” for “nautical.” “I was 28 when I started Nautica,” said Chu, now 58. “It started with a sail-away jacket and was fine-tuned over the years. It resonated with a lot of people.” In its first year, he said, Bloomingdale’s, Barneys New York and Saks Fifth Avenue carried the collection along with such high-end specialty stores as Mark Shale, Roots and Capper & Capper. “When we started, there were 80 department store chains,” Chu said wistfully. “Now there are four. And we were also selling to a few hundred really good specialty stores.” The company had sales of $700,000 in its first year and $2.5 million the following year, the same year it caught the attention of State-O-Maine, a publicly traded sleepwear firm. In his bid to expand his fledging brand, Chu partnered with the larger company and with State-O-Maine’s Harvey Sanders serving as chief executive, a plan was put into motion that took Nautica into various product categories including sportswear, activewear and women’s wear as well as retail. Nautica in-store shops were installed at department stores around the country and the brand sponsored sailing competitions and opened a fancy showroom on 57th Street in New York. With the Nautica label accounting for the majority of State-O-Maine’s sales, the company was renamed Nautica Enterprises in 1994. At the height of its popularity, worldwide sales were more than $1 billion, and there were some 1,500 in-store shops around the country, as well as more than 100 of its own stores. The brand’s name was found on everything from neckwear to fragrance, and along with Tommy Hilfiger and Polo Ralph Lauren, Nautica rode the American sportswear wave that was sweeping the U.S. at that time. In 2003, VF Corp. — which had been thwarted in its attempt to buy Calvin Klein — bought the brand for $600 million in cash. Chu pocketed a windfall of more than $104 million and stayed on with VF to oversee global design, product development and marketing for the label. He remained for a little over a year “to transition the business,” he said, before exiting to search for his next chapter. “VF’s strategy was an investment strategy,” he said. “And they didn’t think they needed any more of my input. So I moved on. Life is a series of different adventures.” The first adventure was to create a new company, DC Design International, to market an upscale men’s designer collection label. At one point, he was designing both a tailored-driven David Chu line and a sportswear collection under the Lincs by David Chu name. The two lines were merged in 2008. He also has a David Chu Bespoke line of luxury made-to-measure men’s wear that he offers from the top floor of his historic brick town house in Manhattan. Chu also flexed the creative side of his personality by buying an equity David Chu photographed last month at his Manhattan town house. stake in Tumi, the luggage and accessories brand, and joining the company as executive creative director. He worked with Tumi for around two years and also acquired Mallory & Church, a luxury accessories firm. Most recently, Chu teamed with Investcorp to acquire Georg Jensen, a Scandinavian luxury brand that is best known for its high-end silver but also manufactures jewelry, watches and high-end home goods. It was founded in 1904 and operates nearly 100 stores around the world but has limited distribution in the U.S. Leafing through a coffee-table book of Jensen’s silver products, Chu, who was named the company’s chief cre- ...1996... PHOTO BY GEORGE CHINSEE Looks from 1993... PHOTO BY ROBERT MITRA PHOTO BY JOHN AQUINO ...and 1998. ative director and cochairman of the board, said he was looking forward to doing “something that I’ve never done before. We can take this company global. Its penetration in North America and Asia is low. China is a potentially big market and we’re [enthusiastic] about the opportunities in North America.” Among his goals for Jensen is to expand its men’s wear offerings. “We have a watch collection but we’re looking to launch men’s accessories,” he revealed. He said he’s eager to “take my taste and sensibility and reposition the brand to be more successful. It’s an interesting challenge for me.” Although he may be older and a little grayer, Chu’s creative mind-set hasn’t really changed since he conceived of Nautica three decades ago. Looking back at the brand, Chu said he is “not surprised” that Nautica has remained so popular. “Once you hit a certain size, you have longevity,” he said. “There’s a value and perception in consumers’ minds about what Nautica stands for, and that will be around for a long, long time.” He admits that he doesn’t really keep up with what the brand is doing, although he said current Nautica designer Chris Cox “is a good guy and has good taste.” But although he has distanced himself from Nautica, it will always be a big part of who he is. “Nautica was great and a lot of fun,” he said. “Life’s been good to me.” PHOTO BY THOMAS IANNACCONE Nautica’s founder reflects on the brand’s roots and looks ahead to his latest challenge. By Jean E. Palmieri 14 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD MILESTONES SMOOTH PHOTOS BY ELI SCHMIDT SAILING Polyester jackets, cotton pants and aviator sunglasses. WWD THURSDAY, FEBRUARY 7, 2013 15 Over the last 30 years, Nautica has evolved into an American lifestyle brand featuring bright performance outerwear, playful sportswear, sleek tailored clothing, timeless dress furnishings and modern accessories. — ALEX BADIA Wool blazer, nylon jacket, cotton and nylon pants. MODELS: THIJS M AT FUSION AND CECE DUVALE AT WILHELMINA; MAKEUP BY LEAH BENNETT, LEAHBENNETT.COM; HAIR BY DENNIS FEI AT KATE RYAN USING BUMBLE & BUMBLE; FASHION ASSISTANT: MERCEDES PSL BASS; FASHION INTERN: MICHAEL ROBERTS; WOMEN’S STYLING BY KIM FRIDAY WWD.COM 16 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES SMOOTH SAILING Polyester vest, Sorona shape polyester memory jacket, cotton shirt and silk tie. Tie bar from Thetiebar.com. 18 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES SMOOTH SAILING Cotton blazer, cotton piqué polo shirt and cotton and elastane skirt. 20 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES SMOOTH SAILING Polyester and nylon jacket, wool cardigan, cotton and Lycra spandex poplin shirt, nylon active pants and high-top sneakers. Congratulations NAUTICA ICONIC STYLE 22 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES SMOOTH SAILING Cotton and linen jacket, cotton denim jacket and jeans, cotton and spandex maillot. 24 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES SMOOTH SAILING Leather jacket, nylon active pants, Sorona shape polyester memory shorts, Nautica Zhik hat, multifunction resin-strap watch. CONGRATULATES CELEBRATING YEARS ON THE WATER 26 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES SMOOTH SAILING Polyester jacket, cotton and linen shirt, polyester shorts and knit tie. Tie bar from Thetiebar.com. 28 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Licensing: Pump Up the Volume Nautica’s 58 categories of product account for more than $500 million in annual sales. By Jean E. Palmieri dren’s wear and home products, Vicari said. The international arm, which includes distributors, counts 22 operators in almost 75 countries. These partners operate some 200 freestanding Nautica stores as well as 1,000 in-store shops. Vicari noted that Timex, Coty and Marchon, its watch, fragrance and eyewear licensees, respectively, hold global licenses for the brand and sell the Nautica product around the world. ·· The unaided awareness of the brand is astounding. There are very few markets where we’re not known. — MARIA VICARI In the States, Nautica is primarily a men’s brand with women’s sportswear slated to launch here for spring under the direction of the in-house Nautica team. But overseas, she pointed out, most of the partners “operate a dual-gender platform.” The largest international market is Greater China, which accounts for 27 percent of total sales. There are 366 points of sale there, including freestanding stores as well as in-store shops in department stores like Isetan, Parkson, Sogo, New World, Mitsukoshi and Takishimaya. There are nine Nautica Kids stores in China and Vicari said there is “potential for growth there.” Other large international markets include Mexico and Domestic Licenses Fragrance: Coty Footwear: ES Originals Umbrellas: Essex Boys’ and girls’ apparel: Fishman Tobin Cold-weather gear: Fownes Men’s main floor outerwear: Levy Group Men’s tailored clothing: Levy Group Women’s topcoats: Levy Group Women’s swimwear: Raj Eyewear: Marchon Neckwear: PVH Luggage and backpacks: Randa Socks: Royce Tailored clothing in Canada: S. Cohen Dress shirts: Li & Fung Belts and small leather goods: Swank Watches: Timex Infant and juvenile bedding: Crown Crafts Tabletop: Lifetime Utility bedding: Louisville Fashion bedding and bath in U.S. and Mexico: Revman Latin America, which have more than 300 points of sale. Product categories sold in those countries include women’s, home furnishings and children’s in addition to men’s wear. The Middle East boasts freestanding men’s, women’s and children’s stores in Dubai, Abu Dhabi, Kuwait, Qatar, Saudi Arabia and Israel. There are no longer any full-price Nautica retail outposts in the U.S., although Vicari said it is definitely in the company’s sights. ·· “We’re working on it,” she said. “It’ll be one of our strategies going forward.” With such a wide-ranging network, Vicari categorized Nautica’s licensing efforts as “a mature business.” And with rare exceptions, there aren’t a lot of other categories where Nautica hopes to plant stakes. “I get calls all day long with some of the most bizarre requests,” she said, shaking her head. “But we have specific guardrails and guidelines [for what products we’ll put the Nautica name on], and we consider if it will be brand-equity building. We also look at the kinds of distribution it would get and whether it would enhance the brand experience with the consumer. If the answers to those questions are not ‘Yes,’ we won’t consider the category.” And, she added with a laugh, “We’re very controlling. It’s not easy being our licensee. We control every part PHOTO BY THOMAS IANNACCONE FROM UMBRELLAS and beach towels to footwear and fashion bedding, and from Europe to Asia to South America, Nautica’s reach is far and wide. And overseeing the massive international effort is Maria Vicari, president of global licensing for the brand. An eight-year veteran of the company, Vicari has an industry pedigree that includes 20 years with GFT working on Ungaro, Valentino and Joseph Abboud, as well as a stint at Saks Fifth Avenue working with then-men’s general merchandise manager Roger Farah, who is now president of Ralph Lauren. When Vicari joined Nautica, the licensing program was already established. In fact, the brand has had international licenses in Canada and Mexico — “above and below the border,” as she puts it — for 29 years. But under her tutelage, the company’s licensing arm has grown substantially, and today there are 40 operators domestically and abroad, overseeing 59 categories of product that account for annual sales of more than $500 million. “Licensing is a big source of revenue and a brand-building component,” Vicari said. “It’s a big endeavor.” The business is broken down into two distinct categories: domestic licensed product and international licensing, she explained. The domestic products are those that are “noncore competencies” for Nautica, like luggage and tabletop. The most successful in terms of volume are watches, fragrance, chil- of the contract negotiation and compliance.” When deciding whether to enter a category, Vicari said the company “discerns what’s {Continued on page 30} International Licenses Fashion bedding in the U.S. and Mexico is licensed to Revman. 338: China and Hong Kong Amanex: Korea Arvind Lifestyles: India Bez Trading: Footwear in Mexico and South America Central Trading: Thailand Dayan: Apparel and accessories in Mexico and South America Debenhams: U.K. La Compagnie del Pelle: Italy, Switzerland and Austria LF Asia: Children’s wear in China Liwa: Middle East Montgar: Chile Notos: Greece and Cyprus Pacific Classic: Children’s wear in Taiwan Planet Sports: Philippines and Vietnam PT Mitra: Indonesia Royal Sporting House: Singapore and Malaysia Ruentex: Taiwan SBN Clothing: Israel Siga: Canada True Alliance: Australia CONGRATULATIONS NAUTICA! 30 YEARS OF REFRESHINGLY UNIQUE AND EXCITING MODERN CLASSIC SPORTSWEAR. YOUR PARTNER FROM THE BEGINNING, We look forward to many future milestones together 30 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Pump Up the Volume Nautica signed a license with Korea’s Amanex for special product and retail. Here, the store in Seoul. {Continued from page 28} worth the effort. If it’s small, it won’t have a future. And it also has to be nothing that would be brand-eroding.” That said, however, bags and footwear are two product categories where “enhancements are up for consideration,” Vicari said. “But with the exception of women’s accessories, we’re pretty much there.” So instead of entering a lot of new categories, the “strategy for the next five years,” she said, is for “organic growth and international expansion.” The plan is to concentrate on emerging markets and Nautica is expected to reveal shortly that it has lined up a partner in Russia. Turkey and Brazil are also seen as key growth opportunities for the brand and the company recently started a full-price business in India. In the third quarter of 2012, Nautica signed a deal with Amanex for the manufacture and distribution of a performance lifestyle collection available exclusively in Korea. The collection includes men’s and women’s performance apparel and accessories, including backpacks, socks, hats, gloves, underwear and scarves. The items are designed to be functional with water-resistant qualities and technical fabrics. The plan is to open between 75 and 100 Nautica accounts by 2016 with distribution in in-store shops in department stores and freestanding Nautica units. This deal is a “pioneering” one for Nautica, Vicari said, since it focuses on one particular product category — performance apparel. “Our positioning there is unique,” she said, noting that the products offered in that country center around “water and lifestyle” and have been received well. Outerwear is also expected to be a big business there. “Korea is a very outerwear-centric market,” she added. Vicari said that when it comes to licensing, one size doesn’t fit all, particularly outside the U.S. borders. “The model is different, depending upon the country,” she explained. “A lot of countries don’t have department stores, so we’ll have more distribution in independent specialty stores.” As a result of its breadth of product and distribution network, the Nautica brand is “incredibly well-known outside this country,” Vicari said. “The unaided awareness of the brand is astounding. There are very few markets where we’re not known. And the reception to the brand is very strong.” Braided belt by Swank. She said with some exceptions for local variances, the product that is sold overseas is the same as that offered in the U.S. As a result, it is imperative that all product sporting the Nautica name be consistent in terms of seasonal fashion trends. “Our product development team works with [creative director] Chris Cox to ensure the brand direction is articulated each season,” she said, adding that “they control the approval process, which is very involved.” Licensees are invited to the company’s showroom to see the season’s fashion focus and work with the design team to brainstorm on how best to translate the trends into their particular product categories. So when customers buy anything from a pair of shoes to a suit or even sheets for their children, they can be assured it got the nod from the top. Watch from Timex. Ties are licensed to PVH. Aqua Rush by Nautica fragrance from Coty. Translucent sunglasses are by Marchon. Boat shoes are licensed to ES Originals. THINK OUTLETS. THINK TANGER. CONGRATULATIONS! FOR 30 YEARS OF FASHION EXCELLENCE 3200 Northline Avenue, Suite 360 Greensboro, NC 27408 tangeroutlet.com NYSE:SKT 32 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Clicking Away The homepage at nautica.com. Digital is experiencing rapid growth in sales, traffic and fans. By Rachel Strugatz EXACTLY THREE years ago, Nautica hit the digital scene, and during the first week of February, the brand reached three million followers on Facebook. Besides the social media platform having the most fans and highest levels of engagement, Facebook drives more traffic to nautica.com than any of its peers, according to Rosalind Drisko, director of marketing and communications at Nautica. “ We c o u l d h a v e 150,000 people talking about an item, and when the brand posts something, there can be thousands of likes. We get a lot of insights,” Drisko said, noting that the most popular posts on Facebook are about timepieces. “With watches, it’s a very international audience, and we see a lot of interaction here.” Behind-the-scenes content — like photos of shows and models — also resonates well with users, and Drisko calls Facebook the “perfect medium” in which to showcase these images. The blog on Nautica saw sig- Nautica’s site. nificant growth on this channel from 2011 to 2012, going from 550,627 fans in 2011 to 2.7 million just one year later. Last June, the brand toasted reaching 1 million followers with its Nautica Millionth Fan initiative. A Facebook follower designated as the millionth fan attended the spring 2013 fashion presentation in New York. In 2010, the brand launched its Nautica 360 blog, as well as accounts on Twitter, YouTube and Flickr, followed by Instagram and Pinterest last August. And as successful as the brand has been thus far on Facebook, Drisko acknowledges that Twitter has been a “bit of a challenge” for the brand. “A lot of people use Twitter to follow celebrities or news outlets and, for us, it’s a bit challenging unless we’re doing a lot of promotions. People usually want a promotion for something off, which we don’t tend to do on Twitter,” Drisko said. She revealed that the brand plans a total overhaul of its digital flagship in the coming months — and while small updates were made to nautica. com last year, the site will look completely different come summer. In addition to enhanced navigation, search and filtering capabilities, the site will contain user reviews and recommendations (a feature not currently available on nautica.com). There will be more of an assortment Nautica’s Facebook page has more than three million fans. of product spanning all categories, ranging from holiday gift lists to backincluding men’s, women’s, kids and to-school bedroom makeovers. The home, as well as licensed products company sponsored a contest (which like watches, eyewear, footwear, ended last month) in which one winwomen’s swimwear, leather goods, ner will have the opportunity to star in an upcoming Nautica Ocean to bath accessories and fragrance. “Product presentation will be bet- Ocean campaign video. Drisko said ter and, in general, [we will] better the winner will be announced within a couple of weeks. integrate the brand experience When asked what has been with the shopping experience. the biggest challenge with re[This will allow] more of an inspect to digital for the brand tegration of content and comthus far, Drisko pointed to merce,” Drisko said. two elements. She added that curThe first is adapting rently, nautica.com only to the speed at which ships to U.S. addresses, technology is changbut there are plans to ing. She cited as an change this. example the rapid Nautica launched pace at which e-commerce in 2008, Instagram has beand that channel come one of the most is growing rapidly. popular social platAlthough Drisko deforms in the past year. clined to reveal the “This is the place to percentage e-commerce be, and that’s the one that generates of overall we’re going to see grow the sales, electronic volume fastest. Instagram is where increased 50 percent bewe’re trying to do more and tween 2011 and 2012. She more,” she said. projects the same growth The second is divvying up recurve for 2013. sources for digital responsibilities. Mobile traffic tripled and Watches “Allocating new resources mobile sales doubled from attract the toward digital becomes an 2011 to 2012, with the channel representing 10 percent of most comments additional part of someone’s all e-commerce sales last year. on Nautica’s job, whereas it should have The company only expects this Facebook page. its own team,” she said. A social media manager and diginumber to grow, especially since 40 percent of Nautica’s e-mails tal manager work closely with the e-commerce team, but the brand is are opened on a mobile device. A stand-alone mobile app doesn’t looking to increase the size of this exist yet, but about 10 apps have been group. “At Nautica, we’re currently created on a project basis since 2010, building a full team.” A holiday Instagram promotion. Celeb r a t i n g y e a r s o n t h e W AT E R Congratulations on 30 Years of Nautical Style and Inspiration 34 WWD THURSDAY, FEBRUARY 7, 2013 SECTION II WWD.COM WWD MILESTONES Making Every Drop Count Nautica puts water in the forefront of its philanthropic efforts, partnering with organizations such as Oceana and Charity: Water. By Lauren McCarthy TO SAY THAT Nautica cares about the environment would be just skimming the surface. Case in point: the company’s mantra, which is “We celebrate, love and respect the water, everywhere, every day.” The apparel brand adopted this mission statement in 2009, after years of philanthropic work lacking “an overarching platform,” according to Morgan Freeman and Ted Danson at an Oceana event. Rosalind Drisko, director of marketing communications. So Nautica teamed with Oceana, the largest international organization focused solely on ocean conservation. Based on similar objectives to save and protect the world’s oceans, Oceana was an obvious match for Nautica’s aquatic focus, resulting in a productive partnership that has continued for the past three years. The brand is currently the organization’s largest corporate sponsor, joining other donors including La Mer, Christie’s and Burgess. Besides financial support, Nautica also supports the organization’s efforts with elbow grease. On World Oceans Day, for example, Nautica sends 80 employees to help pick up trash along the Hudson River near its Manhattan headquarters. For those who cannot attend — the number of volunteers is capped each year due to limited resources — the company holds events in New York and Los Angeles to help bring awareness to the cause. In January 2012, Nautica expanded its charitable efforts to another aquatic-themed organization, pairing with Charity: Water, a nonprofit group dedicated to bringing clean and safe drinking water to developing nations. Within this new collaboration, Nautica introduced its “Give Change to Make Change” campaign, allowing customers at the brand’s outlet stores to round up their purchases to the nearest dollar, with the extra pennies donated to Charity: Water. Since the program was unveiled in March 2012, funds have reached more than double the initial goal. “Our initial goal was $150,000,” said Drisko. “Then we got to a point where we moved it up to $250,000. It ended up coming in at about $375,000.” Nautica currently supports two countries, Nepal and India, through Charity: Water, providing safe drinking water to needy communities through the installation of sanitary water taps and wells. Despite its more recent dedication to water-themed charities, the company has not turned its back on other Actor Josh Hopkins (“Cougar Town”) at the Malibu triathalon. causes it has supported in years past. In 2008, the brand began the Nautica South Beach Triathlon, held every April to benefit St. Jude’s Children’s Research Hospital. For the past 25 years, it has also been a part of the annual Nautica Malibu Triathlon, which benefits pediatric cancer research at Children’s Hospital Los Angeles. Celebrities who have participated in the races include Jennifer Lopez, Matthew McConaughey, Jon Cryer and Tom Cruise. “It started as a small event, and over time it’s grown to be massive,” Drisko said of the Malibu event. “This past year, we raised $1.2 million in that one day. [That’s] really amazing.” DUANE MORRIS IS PROUD TO SUPPORT NAUTICA AS WOMEN’S WEAR DAILY CELEBRATES THE GLOBAL LIFESTYLE BRAND’S 30TH ANNIVERSARY IN ITS MILESTONES ISSUE Duane Morris LLP, a global law firm with more than 700 attorneys in offices across the United States and around the world, is asked by a broad array of clients to provide innovative solutions to today’s legal and business challenges. Duane Morris LLP | 1540 Broadway | New York, NY 10036 Duane Morris – Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia San Diego | San Francisco | Silicon Valley | Baltimore | Boston | Washington, D.C. | Las Vegas | Atlanta | Miami | Pittsburgh | Newark Boca Raton | Wilmington | Cherry Hill | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP – A Delaware limited liability partnership For more information, please contact: MICHAEL TILIAKOS Partner P: 212.692.1045 [email protected] www.duanemorris.com LEACHENG APPAREL CO., LTD. Congratulates on 30 Years of Innovation