ysl boots TomKatCrazy
Next we are broadening Simple sandal offering for spring 2004. This takes advantage of one of our core competencies and it is something we couldn’t do prior to owning ysl boots. It also opens up new distribution we may not reach with ysl boots. Finally,ysl, we are expanding our Simple sheepskin special makeup program for fall of 2004 where we offer more moderately priced Sheepskin Footwear to customers that can’t buy our Ugg brand. We believe these product and distribution initiatives will give us the growth we want for Simple. Ugg continues to outperform our expectations. Fueled by editorial and celebrity exposure, Ugg experienced third quarter sales growth of 44% or $14.1m and is now considered a core brand by many retailers for the third quarter as well as fourth. We are also building an unprecedented backlog of orders pre-booked for first quarter delivery and are pleased with our efforts to expand Ugg selling season. Retail sell-through has been strong throughout the country and now, it’s been discovered by many outside of California. [Inaudible] 0:21retailers,ysl boots, Tiptop Shoes, Harry’s christian louboutins, David Zee’s (ph) are all reporting good increases in their Ugg business this year. We are beginning to see demand for Ugg in Europe and in Canada and see international markets as a growth opportunity for Ugg. Over the next few years, we expect to continue to expand Ugg’s product category, selling season, and geographic penetration. We also expect to selectively license non-footwear products such as outerwear and cold weather accessories. As the leader in the luxury sheep-skin market, Ugg is well on it’s way to achieving it’s sixth consecutive year of double-digit growth and reaching the critical mass needed to become a global luxury life style brand.
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