Brown Shoe Announces Plans for 40 Naturalizer Stores in Japan
Company collaborates with one of Japan’s largest branded footwear corporations
ST. LOUIS, June 14, 2007 – Brown Shoe Company, Inc. (NYSE: BWS, www.brownshoe.com) has taken another step in global expansion and its initiative to build the Naturalizer® brand worldwide. The Company signed a long-term agreement with Regal Corporation to open 32 additional Naturalizer retail concept stores in Japan over the next several years. This move will further enhance the brand’s presence in the Far East.
Regal Corporation, a leading Japanese footwear manufacturer, wholesaler and retailer, currently owns and operates eight Naturalizer retail locations throughout Japan.
“Creating a strong Naturalizer presence in Japan is an important piece of our strategy to build it into a global brand. Naturalizer’s concept of style and comfort is one that is relevant to women in all parts of the world, and opening these stores enables more Japanese consumers to fully experience the brand,” said Brown Shoe Chairman and CEO Ron Fromm. “Brown Shoe has had a great relationship with Regal Corporation for more than 40 years, and its vast experience in the Japanese footwear market combined with its brand-building expertise makes Regal Corporation an ideal partner for developing Naturalizer in Japan.”
Japanese Naturalizer stores carry many of the same styles as their American counterparts, with a team of Regal buyers determining the merchandise mix. The locations also feature Naturalizer’s signature store design and marketing imagery.
“The Naturalizer store concept is a new and unique addition to the retail landscape in Japan. We are excited to collaborate with our long-standing partner, Brown Shoe, to bring the comfort and fashion of Naturalizer to our consumers,” said Regal Corporation President Toshio Itoh. “We are already seeing positive reactions from customers, and are confident that Naturalizer will be a highly successful women's footwear brand in Japan.”
Regal Corporation operates and franchises nearly 200 Regal stores, and has built Regal into one of the top shoe brands in Japan. The company began selling Naturalizer footwear in Japanese department stores in 2000 and the success of the brand created a demand for retail.
Naturalizer was launched in 1927 as the first footwear brand created just for women, providing them with fashionable shoes that were also comfortable. The brand has since evolved into one of the most successful footwear brands in America, currently ranked as the #2 women’s fashion footwear brand according to NPD. Naturalizer has a significant international presence, with distribution in 36 countries around the world, generating approximately $500 million in worldwide retail sales in 2006.
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About Regal Corporation of Japan
Established in 1902, Regal is one of the oldest and largest footwear companies in Japan with nearly 200 owned and franchised retail stores throughout Japan. The company maintains strong branded distribution in Department Stores under the Regal, Naturalizer, Kenford and Hoppers brand names. Regal achieved 2006 annual turnover of $330 million and is traded on the JASDAQ under the symbol 7938/JQ.
About Brown Shoe
Brown Shoe is a $2.5 billion footwear company with global operations. Brown Shoe’s Retail division operates Famous Footwear, the 1,000-store chain that sells brand name shoes for the family; approximately 300 specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle, and Franco Sarto names; and Shoes.com, the Company's e-commerce subsidiary. Brown Shoe, through its Wholesale divisions, owns and markets leading footwear brands including Naturalizer, LifeStride, Via Spiga, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, and Carlos by Carlos Santana and Barbie, Disney and Nickelodeon character footwear for children. Brown Shoe press releases are available on the Company's Web site at http://www.brownshoe.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
This press release contains certain forward-looking statements and expectations regarding the Company's future performance and the future performance of its brands and other legal entities. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include (i) competition within the global footwear industry; (ii) changing consumer demands and fashion trends and purchasing patterns, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions; (iii) changes in the financial and operating health of the partnership organization and its ability to fulfill contractual obligations; and (iv) changes in geopolitical, social, and economic conditions. The Company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption "Risk Factors" in Item 1A of the Company's Annual Report for the year ended February 3, 2007 and the information under the caption "Risk Factors" in Item 1A of the Company's Form 10-Q for the quarterly period ended May 5, 2007, which information is incorporated by reference herein. The Company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.