Top 50 companies in apparel industry as ranked by Apparel Magazine. Ranked based on profit margin (must be public, must be >$100M in revenue).

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3. COVER STORY
By Jordan K. Speer
12 JULY 2012 • www.apparelmag.com

4. aking a look at the most profitable apparel companies each year is quite revealing, not only about each individual business
T and the apparel industry at large, but also about the economy in general, global trends, technology shifts and the
overall zeitgeist. Last year found the Top 50 slowly unbundling themselves after the winds of the Great Recession. They
were pulling off their scarves, unbuttoning the top few buttons and easing into a somewhat sunny Recovery, focusing on right-
sizing their enterprises by examining everything — including brands, products, stores, distribution centers, real estate, people,
messaging, social media, inventories, partners, suppliers, third-party providers and technologies — to figure out what sizes
and combinations of these assets would best allow their businesses to grow and prosper.
welve months on, we might call this the Year of Apparel Yin-Yang (we might call it that for two reasons, actually — see
T No. 1 below) because of the balance that apparel companies are starting to achieve, most notably in the forms of:
• Physical-Digital: Omni-channel is pushing the way to digital displays in stores and 24/7 shopping from mobile devices
everywhere • International-Domestic: Global expansion, particularly in the BRIC countries, is set against slowing, but
more strategic U.S. store growth, bringing us to • Refurbishment-New Construction: Some shuttering, a flurry of
remodels and relocations is set against very considered new openings, including in smaller markets • Outlet-Full-line: The
value-oriented economy is fueling a rise in outlet stores, even
as the luxury customer is alive and well • Heritage Brands-
National Labels: A thinning of legacy brands is making room
for iconic, global best-sellers, and • Technology-People:
Deployments ranging from behind-the-scenes IT systems to
customer-facing mobile technologies are balanced by the
increasing comprehension that without well-trained, enthusiastic,
happy and engaged employees at all levels, the technology
will prove fruitless.
#1 Zuoan
What else should you expect in the Year of the Dragon?
Whether its the auspicious powers and good luck brought on
by this mythical creature; the “fashionable elegance” of its
lifestyle brand and a design team led by chairman and CEO
James Hong, nominated one of the top three fashion design-
ers by the China Fashion Association in 2009; a manufactur-
ing base close to its consumer base in a country of 1.3 billion
people whose levels of disposable income are on the rise; or
a different government and business environment from that
of the United States that most contributed to Zuoan’s mete-
oric debut on the chart after going public on the U.S. stock
exchange last year, one thing is not debatable: This design-
driven brand (Zuoan means “left bank” in Chinese, referring
to Paris’ sophisticated Left Bank) has not only taken the top
spot, but done so with a profit margin higher than any ever
reported on Apparel’s Top 50. The company, which targets
fashion-minded, upwardly mobile males ages 20 to 40 with a
mix of casual apparel, footwear and lifestyle accessories, sells
its products in 1,295 stores (most of which are run by distrib-
utors) throughout 29 of China’s 32 provinces and municipali-
ties. It outsources almost 95 percent of production but also
maintains its own facility to control quality and also to pre-
vent unauthorized disclosure of its most new and fashion-
forward products.
www.apparelmag.com • JULY 2012 13

5. THE TOP 50
#2 lululemon athletica
If lululemon’s soaring profits are any measure of its stated mission to “elevate
the world from mediocrity to greatness,” then it must be doing a bang-up job.
The yoga and running wear specialty retailer took its profit margin from an
already astounding 17.1 percent to 18.4 percent in fiscal 2011, but to listen to
its executives or take a turn around lululemon.com, you wouldn’t know prof-
its even figured into its corporate strategy. CEO Christine Day talks about
helping guests, communities and educators “to build the lives they love to
live,” while the web site offers words of inspiration, information about lulule-
mon’s inaugural half marathon The SeaWheeze (Aug. 11 in Vancouver, for all
you runners out there) and tips on “how to do a side crow” yoga pose. While
focusing on elevating the world, this Wall Street darling opened 33 stores in
the United States and Canada for a total of 155, and grew its direct-to-
consumer business from 8 percent to 11 percent of net revenue. In 2012,
the company will open approximately 30 new stores in the United States and
Canada and five in Australia and New Zealand. In January, founder and
chairman Chip Wilson left his post as chief innovation and branding officer,
but continues as chairman.
#3 The Buckle
No need to buckle up for this ride, as this denim specialty retailer easily holds steady in the top
three while surpassing $1 billion in sales for the first time, increasing average transaction value
5.3 percent to $103.45, increasing average price point 4.6 percent to $48.00 — and selling more
than 5 million pairs of jeans. The 431-store chain remodeled 24 stores, opened 13, and
redesigned buckle.com to offer enhanced resolution and navigation, also adding online product
ratings and reviews to its fashion videos, tips and blog — contributing to online sales growth up
25 percent, to $78 million. With its emphasis on personalized attention to its customers, indi-
vidual services including free alterations, layaways and a frequent shopper program — and
more than 1,000 styles from more than 20 brands, including its own private label, which
accounted for approximately one-third of fiscal 2011’s sales — The Buckle clearly is fulfilling its
mission “to create the most enjoyable shopping experience possible for [its] guests.” It also
doesn’t hurt that The Buckle’s leadership — chairman of the board Dan Hirschfeld, president
and CEO Dennis Nelson and vice president of sales Kari Smith — have a combined tenure of
more than 102 years with the company!
#4 Francesca’s Collections
Debuting at the top of the chart after going public last year seems to
jive with the first part of its motto, “Think Big, Act Small.” Targeting
the 18- to 35-year-old, fashion-conscious female, the specialty retailer,
which grew revenues by 51 percent, comps by 10.4 percent and turned
in an operating margin of 22.7 percent, is “delighted when a customer
is surprised that there is more than one francesca’s.” That’s because the
company — which added 76 locations last year for a count of 283, plans
to add another 75 this year and looks to triple the count to approxi-
mately 900 in the next seven to 10 years — doesn’t have stores; it has
“boutiques,” each of which is designed to offer a unique and “locally
owned” atmosphere that is not at all suggestive of a national chain.
That’s a tall task to accomplish, but one that francesca’s seems so far to
be mastering by offering a broad but shallow, eclectic and differentiated assortment of merchandise ranging from apparel to gift
items; carefully selecting its boutique locations; and empowering managers to use their creativity. Meanwhile, behind the scenes,
francesca’s recently replaced its merchandise management system with a new scalable platform, and this year begins implementation
of a new point-of-sale system while also relocating and expanding its current DC and corporate offices.
14 JULY 2012 • www.apparelmag.com

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7. THE TOP 50
#5 Casual Male Retail Group
Taking the award for the biggest leap up the Top 50, 31 places from No. 36 last year, the largest specialty retailer of men’s big and
tall apparel successfully expanded its new superstore concept, DestinationXL™, to 24 locations, and launched its e-commerce site.
Launched in 2010, DXL houses merchandise from Casual Male XL, Rochester Clothing, B&T Factory Direct and Shoes XL, and fig-
ures centrally in the company’s strategy to capture closer to 17 percent vs. its current approximate 11 percent share of the $3.5 bil-
lion to $4.0 billion big and tall market by offering more variety in one place. Specific opportunity has been flagged in the lower-size
range of its market — men with 42” to 46” waist sizes, who fall in the high end of the size range for most traditional retailers, but
have been reluctant to shop at Casual Male stores. In offering a greater selection and more brands than are typically found else-
where in this “smaller” size, the company is looking to capture this niche audience. Casual Male expects its first franchised DXL
store to open in Kuwait in April 2012.
#7 Nike
Grabbing the No. 7 spot
two years running, this
sports powerhouse pulled in almost $21 billion in rev-
enue and president and CEO Mark Parker revised its
2015 goal upwards to $28 billion to $30 billion. Citing a
volatile economic recovery and challenges ranging from
nagging unemployment, high levels of government
debt and rising costs of raw materials, energy and labor,
Parker nonetheless notes that “external forces do not
control our destiny.” In the spirit of its most recent
campaign and film, “My Time Is Now,” Nike continues
its relentless pursuit of innovation and opportunity. Just
a few highlights from fiscal 2011: 1) significant growth
in its apparel business, with NIKE Pro becoming the
#6 True Religion leading women’s base layer brand in the United States;
2) the launch of the GPS Sport Watch; 3) the opening
Another chart-topping veteran, True Religion continues to lead the
faithful with its innovative and distinctive product designs and atten- of a state-of-the-art, sustainable, 120,000-square-meter
tion to fit, style and quality. With the 2011 average sales price for a DC in China; 4) e-commerce up 25 percent; 5) contin-
pair of its denim pants at $255, the company’s success also reflects ued expansion in China, India and Brazil; and 6) the
larger societal and fashion trends, namely: 1) the luxury market is reclamation of 13 million bottles from landfills in
alive and well; and 2) if fashion were a religion, its god would be Japan and Taiwan that it turned into its lightest ever
denim. In 2011, True Religion’s U.S. consumer direct segment gener- high-performance football (soccer) jerseys. More
ated sales of $251.3 million (59.9 percent of sales), while its interna- recently, as part of its new campaign, Nike launched
tional segment — which includes stores in the U.K., Germany, the Football Stadium in Warsaw, Poland, where fans
Canada, Japan and the Netherlands as well as wholesale operations can immerse themselves in football products, services
on six continents — generated net sales of $79.0 million (18.8 percent and digital experiences, and also experience the energy
of sales). The U.S. wholesale segment generated sales of $86.3 mil- of “The Chance,” Nike’s global football talent search,
lion (20.5 percent of sales), with the remaining one percent of rev- which gives young amateur footballers the chance to
enue generated from its licensing business, in the categories of prove themselves on an elite stage. In May, NIKE
footwear, fragrances, headwear, sunglasses and swimwear. announced that it will divest its Cole Haan and
Umbro brands.
#8 Jos. A. Bank Clothiers
Also holding its spot, the men’s specialty retailer of tailored and casual clothing continued its strong performance, driving sales
through a strong combination of high quality “updated classic” clothing and heavy promotions that kept men buying through the
recession and positioned the company to be top of mind moving into the recovery. With suits representing 25 percent of its direct
marketing sales (up 14.7 percent), it’s clear that Jos. A. Bank’s consumers are confident purchasing traditional business attire online
and via catalog, and that bodes well for its new Factory store and Big and Tall websites, launched in 2010 and expanded last year to
add or broaden offerings — and also for last year’s expansion into international shipping online. To support its continued growth —
the addition of 53 full-line, factory and franchise stores brought the total to 556 as the company marches toward its goal of approxi-
mately 650 to 675 stores — Jos. A. Bank added space to one of its two DCs, and opened a third.
16 JULY 2012 • www.apparelmag.com

9. THE TOP 50
#9 Polo Ralph Lauren
Ralph Lauren takes center stage in London this month as the outfitter of the 2012 U.S. Olympic Team. The uni-
forms for the closing ceremonies and the village were revealed on the “Today Show” in April, and you too can
be a part of history and look like an Olympian (well, maybe) by creating your own Olympic apparel online, cus-
tomizing your colors and adding your name, while counting down to the opening ceremonies and “meeting the
athletes” online through their stories, stats and more. Or, if the Olympics aren’t your thing, take a turn through
the Hamptons via Ricky Lauren’s book, “The Hamptons: Food, Family and History.” You can buy the book — or
you can “shop” the book online. You might like to peruse RalphLauren.com’s Style Guide, read RL Magazine or
take a peek inside the global flagship stores — online. Whether Ralph Lauren is curator of style, media mogul or
retailer extraordinaire is hard to pin down these days, and that’s just the point. The company long ago perfected
the art of lifestyle merchandising, and behind the scenes its tech savvy has been groomed to match — online,
in-store and across its global supply chain.
#10 Guess
Celebrating “30 sexy years” in 2011 with a
Guess 1981 collection that commemorates
the styles of such icons as Marilyn Monroe,
Guess slid four spots in the rankings but
turned out a solid performance as it contin-
ues to execute its global sourcing and product
development plan to support its expanding
retail, wholesale and e-commerce channels
(see “Guess Who’s a Sourcing Innovator” in
the June issue of Apparel). In streamlining its
vendor base and achieving greater geographic balance, the company is gaining crucial flexibility to better get the jump on market
changes and growth opportunities — which it sees as particularly strong in Europe and Asia, where it believes the GUESS? brand is
well recognized but still under-penetrated. Just a few of last year’s key initiatives in its march to tech supremacy: the company
developed several mobile-based initiatives, relocated its U.S. data center, implemented an assortment planning system as a tool to
tailor assortments to store clusters and optimize buy quantities, implemented a new POS system in its European stores, upgraded
ERP systems in Europe and Korea, and tapped into new functionality in its PLM system.
#11 VF Corp.
With revenues up 22.8 percent, income up 55 percent and profit margin up 26.6
percent, this apparel and footwear powerhouse that annually produces more than
400 million units across 36 brands climbed three spots, inching ever closer to the
Top 10, which it last hit in 2000. VF, wholesaler, retailer and manufacturer — the
company still produces 31 percent of its units in VF-owned facilities — operated
1,053 stores (including 188 it acquired with its recent purchase of Timberland) at
the end of last year and saw revenues from its retail and e-commerce climb to 19
percent of business in 2011. This year, investments in stores of approximately $86
million will be concentrated in brands with higher retail growth potential (Vans,
The North Face, 7 For All Mankind) and in international store expansions. Mean-
while, its Jeanswear Coalition, including the Lee and Wrangler brands, has seen a
compounded annual revenue growth rate in excess of 25 percent over the past
three years in Asia, with India growing at a rate of 45 percent in
2011. Last year, VF’s Ella Moss brand opened the first of 12
planned stores, in Newport Beach, Calif.
Pictured here are Vans jeans and Timberland®
Earthkeepers® hookset handcrafted fabric oxford
in blue canvas, representing just two of the
seemingly endless number of brands in VF’s
portfolio.
18 JULY 2012 • www.apparelmag.com

11. THE TOP 50
#12 Limited Brands
Victoria’s Secret has launched a new bra, and it’s a showstopper.
No, really. That’s what it’s called, or, if you prefer, “summer’s
hottest multi-way,” because, you know, you can wear it five ways.
Limited Brands owns retail lines La Senza, Henri Bendel and its
flagship brands Bath & Body Works and Victoria’s Secret, but the
majority of sales come from its sexiest side, with Victoria’s Secret
racking up $6.1 billion out of $10.4 billion in 2011 total company
revenues, up 11 percent over the previous year. Overall, Limited
Brands turned in a good year, with comp-store sales up 10 percent
and a record adjusted operating income rate of 14.9 percent. The
company maintained a focus on its domestic business while
expanding internationally in a “deliberate and disciplined” manner,
including in Canada and the Middle East. As it has done in the past
— eliminating businesses such as Express and The Limited to focus
on core strengths — this year the company divested 50 percent of its
third-party apparel sourcing business, Mast Global Fashions. It also
announced the closing of 38 underperforming La Senza stores.
#13 Urban Outfitters
Sales were up 8.8 percent but net income plummeted 32.1 percent and profit
margin took a dive of 37.6 percent, which dropped the company nine spots
from last year’s position at No. 4. Following four straight quarters of declining
net income — after which CEO Glen Senk left his position and Urban’s
cofounder Robert A. Hayne took up the reins — first quarter results for fiscal
2013 look somewhat encouraging, with sales driven in part by positive regular-
price comp sales, a reflection that the company is getting its creative groove
back and product is striking a chord with the consumer, although profit margin
over the same quarter last year is still down by 131 basis points. Continuing to
expand its store base here and in Europe, the company plans to open approxi-
mately 55 to 60 new stores this year, including 23 Urban Outfitters, 16 Free
People and 14 Anthropologie stores. It also recently opened a second BHLDN,
its bridal store, in Chicago, and will open a second terrain garden center this
year as well.
#14 Cato
Taking a significant leap from No. 21 last year, Cato’s 10 percent increase in net
income hit a record level of $64.8 million — its second consecutive year of record
net income and fourth consecutive year of strong earnings performance — yet the
sobering facts of the economy run like a rough undertow beneath its smooth sail-
ing. Straight talk from chairman, president and CEO John P. D. Cato in his letter
to shareholders: “Although we have read stories and have seen glimpses of
improvement in overall economic conditions and in certain segments of the retail
industry, many of our customers remain in a difficult and uncertain situation with
slow job growth and the price of gas and food taking an even larger piece of their
disposable income.” While facing lower customer demand and, like most retail-
ers, higher prices from increased labor and material costs in 2011 — Cato is debt-
free and using its approximately $245 million in cash to invest in new concepts
and stores. It opened 38 in 2011, including the first 10 of its Versona Accessories,
aimed at customers with higher income levels than shoppers at its other stores —
a new concept that will allow Cato to expand its customer base while also diversi-
fying its real estate.
20 JULY 2012 • www.apparelmag.com

12. THE TOP A ranking of apparel companies (with at least $100M in annual sales) that are publicly
traded on the U.S. stock exchange by their profit margin for the most recent fiscal year.
SALES NET INCOME % %
1
Last
2012 Year’s
RANK Rank
New
Company
Zuoan
50 FY
Dec.
Most
Recent
FY
$193.9
Previous
FY
$137.3
%
Change
Sales
41.22
Most
Recent
FY
$40.3
Previous
FY
$28.8
%
Change
Net
Income
39.93
Profit
Margin,
Most
Recent FY
20.78
Profit
Margin,
Previous
FY
20.98
2 1 lululemon athletica Jan. $1,000.8 $711.7 40.62 $184.1 $121.8 51.15 18.40 17.11
3 2 The Buckle Jan. $1,062.9 $949.8 11.91 $151.5 $134.7 12.47 14.25 14.18
4 New Francesca’s Collections Jan. $204.2 $135.2 51.04 $22.5 $16.0 40.63 11.02 11.83
5 36 Casual Male Retail Group Jan. $397.7 $393.6 1.04 $42.7 $15.4 177.27 10.74 3.91
6 5 True Religion Jeans Dec. $419.8 $363.7 15.42 $45.0 $43.5 3.45 10.72 11.96
7 7 Nike May $20,862.0 $19,014.0 9.72 $2,133.0 $1,907.0 11.85 10.22 10.03
8 8 Jos. A. Bank Clothiers Jan. $979.9 $858.1 14.19 $97.5 $85.8 13.64 9.95 10.00
9 7 Polo Ralph Lauren Mar. $6,859.5 $5,660.3 21.19 $681.0 $567.6 19.98 9.93 10.03
10 6 Guess? Jan. $2,688.0 $2,487.3 8.07 $265.5 $289.5 (8.29) 9.88 11.64
11 14 VF Corp. Dec. $9,459.2 $7,702.6 22.81 $888.1 $571.4 55.43 9.39 7.42
12 10 Limited Brands Jan. $10,364.0 $9,613.0 7.81 $850.0 $805.0 5.59 8.20 8.37
13 4 Urban Outfitters Jan. $2,473.8 $2,274.1 8.78 $185.3 $273.0 (32.12) 7.49 12.00
14 21 The Cato Corp. Jan. $931.5 $924.7 0.74 $64.8 $58.9 10.02 6.96 6.37
15 18 Express Jan. $2,073.4 $1,905.8 8.79 $140.7 $127.4 10.44 6.79 6.68
16 13 UniFirst Aug. $1,134.1 $1,025.9 10.55 $76.5 $76.4 0.13 6.75 7.45
17 28 Zumiez Jan. $555.9 $478.8 16.10 $37.4 $24.2 54.55 6.73 5.05
18 New Body Central Dec. $296.5 $243.4 21.82 $19.7 $9.8 101.02 6.64 4.03
19 20 Under Armour Dec. $1,472.7 $1,063.9 38.42 $97.0 $68.5 41.61 6.59 6.44
20 19 Nordstrom Jan. $10,500.0 $9,310.0 12.78 $683.0 $613.0 11.42 6.50 6.58
21 22 Cintas Corp. May $3,810.4 $3,547.3 7.42 $247.0 $215.6 14.56 6.48 6.08
22 23 Chico’s FAS Jan. $2,196.4 $1,905.0 15.30 $140.9 $115.4 22.10 6.42 6.06
23 27 Columbia Sportswear Dec. $1,694.0 $1,483.5 14.19 $103.5 $77.0 34.42 6.11 5.19
24 25 Ascena Retail Group July $2,914.0 $2,374.6 22.72 $170.5 $133.4 27.81 5.85 5.62
25 31 HanesBrands Dec. $4,637.1 $4,326.7 7.17 $266.7 $211.3 26.22 5.75 4.88
26 11 Gap Jan. $14,549.0 $14,664.0 (0.78) $833.0 $1,204.0 (30.81) 5.73 8.21
27 12 Maidenform Brands Dec. $606.3 $556.7 8.91 $33.2 $45.3 (26.71) 5.48 8.14
28 10 Carter’s Jan. $2,109.7 $1,749.3 20.60 $114.0 $146.5 (22.18) 5.40 8.37
29 Back PVH Corp. Jan. $5,890.6 $4,636.8 27.04 $317.9 $53.8 490.89 5.40 1.16
30 32 rue21 Jan. $760.3 $634.7 19.79 $39.0 $30.2 29.14 5.13 4.76
31 24 The Warnaco Group Dec. $2,513.4 $2,295.8 9.48 $127.5 $138.6 (8.01) 5.07 6.04
32 42 The Men’s Wearhouse Jan. $2,382.7 $2,102.7 13.32 $120.6 $67.7 78.14 5.06 3.22
33 33 American Eagle Outfitters Jan. $3,159.8 $2,967.6 6.48 $151.7 $140.6 7.89 4.80 4.74
34 30 The Children’s Place Jan. $1,715.9 $1,674.0 2.50 $77.2 $83.1 (7.10) 4.50 4.96
35 29 Ever-Glory International Dec. $215.8 $134.1 60.92 $9.6 $6.7 43.28 4.45 5.00
36 43 Destination Maternity Sept. $545.4 $531.2 2.67 $23.0 $16.8 36.90 4.22 3.16
37 26 G-III Apparel Group Jan. $1,231.2 $1,063.4 15.78 $49.6 $56.7 (12.52) 4.03 5.33
38 39 G&K Services July $828.9 $833.6 (0.56) $33.2 $28.6 16.08 4.01 3.43
39 37 Ann Inc. Jan. $2,212.5 $1,980.2 11.73 $86.6 $73.4 17.98 3.91 3.71
40 3 Oxford Industries Jan. $758.9 $603.9 25.67 $29.4 $78.7 (62.64) 3.87 13.03
41 38 Superior Uniform Group Dec. $112.4 $105.9 6.14 $4.1 $3.8 7.89 3.65 3.59
42 45 Delta Apparel June $475.2 $424.4 11.97 $17.3 $12.2 41.80 3.64 2.87
43 34 Abercrombie & Fitch Co. Jan. $4,158.1 $3,468.8 19.87 $127.7 $150.3 (15.04) 3.07 4.33
44 9 Aeropostale Jan. $2,342.3 $2,400.4 (2.42) $69.5 $231.3 (69.95) 2.97 9.64
45 40 Levi Strauss & Co. Nov. $4,761.6 $4,410.6 7.96 $135.1 $149.4 (9.57) 2.84 3.39
46 44 Perry Ellis International Jan. $980.6 $790.3 24.08 $25.5 $24.5 4.08 2.60 3.10
47 47 Wet Seal Jan. $620.1 $581.2 6.69 $15.1 $12.6 19.84 2.44 2.17
48 46 Stage Stores Jan. $1,511.9 $1,470.6 2.81 $31.0 $37.6 (17.55) 2.05 2.56
49 35 Stein Mart Jan. $1,160.4 $1,181.5 (1.79) $19.8 $48.8 (59.43) 1.71 4.13
50 Back Wacoal March $2,002.5 $2,075.4 (3.51) $33.3 $32.1 3.74 1.66 1.55
*NOTES: New = The company is appearing in the Apparel Top 50 for the first time. Back = The company has been ranked in the Apparel Top 50 in previous years but was not ranked
last year because of its performance, because it was not publicly traded, etc. Dollar amounts are in millions of U.S. dollars. Levi Strauss & Co. is a privately held company that releases
financial data publicly. Apparel does not include department stores in its Top 50 rankings (see Top 10 department store rankings in next month’s issue). Nordstrom files with the SEC
under “Retail - Family Clothing Stores” (SIC code 5651).

13. THE TOP 50
#15 Express
Making a strong debut at No. 18 last year after going public in May 2010,
Express — divested by Limited Brands in 2007 — this year climbs another
three spots with strong growth in sales (including comps), net income and
profit margin. The company has emerged from a combo of 30 years of retail-
ing experience and new owners with a trendy vibe offering the 20- to 30-
year-old gal and guy a fresh, spirited style that crosses from work to play.
Meanwhile, its web site features EXPRADIO (webtunes for listening or pur-
chase); EXPLIFE (music videos, fashion shoots and news); and EXPMOBILE
(an app for your smartphone). Last year, the company tested and introduced
a new store design which it will continue to roll out, and this spring it
launched a new loyalty program, Express NEXT, which should help build a
closer bond with consumers. But a connection clearly has already been
established — last year, the company’s customers and fans helped Express
set the Guinness World Record for Most People Modeling on a Catwalk!
#16 UniFirst #17 Zumiez
Despite the sluggish economy and The Washington-based 444-store boardsport-apparel
high U.S. unemployment, the retailer is up 12 spots on the Top 50, with a remarkable
large workwear and textile ser- 54.6 percent increase in net income and a 33.1 percent
vices company celebrated its 75th increase in profit margin, to 6.73 percent. With 33
anniversary in 2011 with record straight years of profitability, Zumiez has succeeded
revenues of $1.134 billion and where some competitors have not by creating a unique
record net income of $76.5 mil- customer experience with the look and feel of an inde-
lion. Drilling down, the company’s pendent specialty shop (think couches and video games),
core Laundry Operations, which shelves stocked with an extensive array of distinctive
represents the majority of UniFirst merchandise (including its own private label at 17.7 per-
business, reported a 9.8 percent cent of sales), and sales associates who share their cus-
revenue increase to a record tomers’ passion for activities that include skateboarding,
$997.0 million, while its Specialty surfing, snowboarding, BMX, motocross — and the music
Garments segment, which provides products and services to the and lifestyle that go along with them. This year the com-
nuclear and cleanroom industries, hit record revenues and operat- pany plans to open approximately 50 stores and relocate
ing income, up by 17.4 percent and 10.1 percent over the previous its e-commerce fulfillment center from Washington to
year, respectively. UniFirst cites its leading position in the U.S. Kansas to help speed product to the consumer. Recently,
nuclear market, major reactor rebuild projects in Canada and new Zumiez engaged CrowdTwist to develop an innovative
decommissioning initiatives in Europe as contributing to this rise, loyalty program, dubbed The Zumiez Stash, which allows
and you can’t help but assume that Japan’s earthquake, tsunami customers to earn points for rewards including limited-
and subsequent Fukushima nuclear power plant disaster are con- edition apparel, skate decks autographed by celebrated
tributing to greater diligence when it comes to managing these athletes, and even vacation packages. Last month, the
facilities globally. UniFirst’s third operational division, First Aid, company announced it will acquire Austrian action sports
also hit a record, reporting revenues up by 12.5 percent. retailer Blue Tomato for $75.3 million.
#18 Body Central
Making its debut on the Top 50 after completing an IPO in October 2010, the 241-store ladies’ wear specialty retailer offers on-
trend, quality apparel and accessories at value prices under the Body Central and Body Shop banners and via bodyc.com. Most
products are sold under its private labels, Body Central® and Lipstick®, and are presented to emphasize coordinated outfits in four
major lifestyle categories: casual, club, dressy and active. The company’s “test-and-reorder strategy” — testing small quantities in
its stores before placing larger purchase orders for a broader rollout — allows it to respond rapidly to changing trends and this year
contributed to record sales and earnings, comp-store sales up 11 percent and, for the first time in its 40-year history, an operating
margin of more than 10 percent. The company made key hires in finance, store operations, merchandising, information technology
and real estate while also implementing new systems including store labor scheduling, sales audit and loss prevention and collect-
ing nearly 1 million customer addresses for its CRM database. This year, the company will add a new merchandise allocation sys-
tem, hand-held scanners and at least 35 new stores.
22 JULY 2012 • www.apparelmag.com

14. THE TOP 50
#19 Under Armour
Under Armour’s (UA) first $1 billion in net revenues was built largely on synthetic
materials, but chairman, president and CEO Kevin Plank believes last year’s introduc-
tion of Charged Cotton will open the path to quadrupling its market in “active use”
apparel. UA continues to expand far beyond its core compression apparel heritage,
last year also introducing the UA Charge RC lightweight running shoe and the E39™
shirt, whose integrated biometric and athletic performance monitor communicates
data at up to 100 times per second and provides sport-relevant actionable feedback
to the wearer. To support its direct-to-consumer business, which grew 62 percent
to represent 27 percent of revenue, the company initiated a major upgrade of its
e-commerce site, while globally, UA grew 35 percent outside North America and took
a big step toward capturing a larger share of the sportswear market in China (expected
to grow from $13 billion in 2010 to $30 billion by the end of 2013) by opening its first
shop there. Meanwhile, UA’s new partnership with the Tottenham Hotspur Football
Club of the English Premier League should widen the market for its soccer products
— the club boasts more than 20 million fans and an audience of more than 4 billion UA Highlight cleat featuring CompFit ankle
people — bringing Under Armour that much closer to its stated goal of doubling net construction for a locked in fit, and Under
revenues to more than $2.1 billion by 2013. Armour’s proprietary MPZ material.
#20 Nordstrom
The master of the customer experience has been trying to
bring its renown service skills to Manhattan shoppers for
about 10 years now, and while it still hasn’t located real estate
for a full-size department store, the luxury chain made a foot-
print of a different sort, opening a philanthropic shop in the
city’s SoHo district. Dubbed treasure&bond, the store gives
Nordstrom a feel of the pulse of the New York shopper
through their reactions to an eclectic mix of apparel and home
décor, and donates profits to local charities. In another atypical
— and somewhat controversial — move, the company began
selling its returned and worn shoes at its Nordstrom Rack
stores, which some critics feel cheapens the brand’s image but
others see as capitalizing on the thriving market for pre-
owned couture among today’s youth. Also in 2011, the 111-
year-old retailer hit record revenues of $10.5 billion, up 12.7 percent, saw same-store sales increase 7.2 percent, increased direct
sales by 29.5 percent while launching everyday free shipping and returns, deployed more than 6,000 mobile POS devices and 1,300
tablets across its 117 full-line stores, hit a record $2 billion-plus in sales at its Nordstrom Rack stores and added 850,000 members to
its Fashion Rewards program for a total of 2.6 million. In April, the company made a $16.4 million investment in online pants-
maker Bonobos, and will begin selling its clothing in stores and online.
#21 Cintas
Revenues are up in all four of its operating segments — Rental Uniforms and Ancillary Prod-
ucts, Uniform Direct Sales, First Aid, Safety and Fire Protection Services and Document Man-
agement Services — as the company climbs one spot with a 14.6 percent increase in net income
and a 6.7 percent increase in profit margin to 6.5 percent, and business is looking even brighter
for fiscal 2012. For the first three quarters ended on Feb. 29, revenues are up 8.9 percent and net
income is up 24.2 percent for a profit margin of 7.2 percent, which is a 14.1 percent increase over
the same period last year. In ongoing efforts to promote sustainability, Cintas introduced what it
says it the hospitality industry’s very first machine-washable tuxedo — partially composed of
recycled polyester made from recycled plastic bottles — which protects the environment from
the chemicals used in dry cleaning while saving businesses approximately $1,000 per employee
annually by eliminating that expense.
www.apparelmag.com • JULY 2012 23

15. THE TOP 50
#22 Chico’s
In just three years, the 1,250+-store retailer has turned around
an operating loss of $40 million to an operating income of
$222 million, continuing its steady climb up the Top 50. The
owner of Chico’s, White House | Black Market, Soma Inti-
mates and the newly acquired Boston Proper (a direct-to-con-
sumer women’s apparel retailer) turned out record sales up
15.3 percent to $2.2 billion (its third consecutive year of double
digit sales growth) and comp sales up by 8.2 percent. The
company also drove a four-wall profit in Soma for the first
time. As part of its growth strategy, the company plans to
open at least 120 new stores each year for the next several
years — including test stores for Boston Proper in 2013 —
while focusing on its trademark “Most Amazing Personal Ser-
vice,” innovative marketing plans, leveraging expenses
through shared services and brand optimization.
#23 Columbia Sportswear
Climbing four spots as its profit margin increased 92 basis
points to 6.1 percent, the company’s continuing momentum in
technology and design innovation for “keeping people warm,
dry, cool and protected in the outdoors” is paying off as the
Columbia Sportswear brand hit a record $1.39 billion in sales,
up 10 percent from 2010 and 30 percent from 2009. Most
recently, the company introduced technology that retains the
wearer’s own sweat to keep the body cool. It’s called Omni-
Freeze® ZERO under the
Columbia banner, and
Cool.Q under its
Mountain Hard-
wear brand.
Speaking of, that brand’s sales grew 17 percent in 2011, total-
ing $142 million. The brand also worked with leading alpin-
ists, including Swiss speed-climber Ueli Steck, to develop an
assortment of high-performance apparel and equipment
that reduced the weight of the typical ascent kit by more
than 50 percent. Meanwhile, the strategic repositioning of
Sorel two years ago as a premium brand targeting young,
fashion-forward female consumers proved successful, with
Sorel the company’s fastest growing brand in 2011, posting
a 68 percent increase in global sales to $150 million.
24 JULY 2012 • www.apparelmag.com

16. THE TOP 50
#24 Ascena Retail Group
The company ended its fiscal year in July 2011 up one spot, with sales up 22.7 percent, net income up 28 percent and profit margin
up 23 basis points to 5.85 percent, results that included the first full year of operations for tween specialty retailer Justice. The owner
of dressbarn, maurice’s and Justice ended the year debt-free and with cash and investments of $436 million, which came in handy
for this year’s acquisition of plus-size women’s retailer Charming Shoppes. The corporate name change from dressbarn to Ascena
Retail Group in December 2010 is part and parcel of the company’s fundamental shift from a single chain to a family of retail
brands, each serving its own niche yet benefitting from greater strategic options, operational efficiencies and additional financial
flexibility, such as last year’s consolidation of its dressbarn DC operations with the scalable, leading-edge Justice facility in Etna,
Ohio. Results for 2012 look promising — for the nine months ended April 28, revenue is up 10.3 percent and net income is up 12.9
percent over the same period last year.
#25 Hanesbrands #26 Gap
This Apparel 2012 Sustainability All-Star (see last Now you too can dress like “Mad Men’s” Don Draper or Peggy Olsen with
month’s issue for the full story) climbed six spots the new limited collection from Banana Republic, show your spirit by pur-
on the Top 50, demonstrating that environmental chasing licensed NFL products at “Superfan Nation” shop-in-shops at Old
stewardship can go hand-in-hand with rising Navy or pay with Google Wallet (and get a 15 percent discount) in stores in
profits. Since 2007, the company, which operates San Francisco. Although Gap Inc. dropped 15 spots with disappointing finan-
43 manufacturing facilities, has reduced carbon cial results, including an earnings decline for the first time since 2006, the
emissions per garment produced by 27 percent, 3,263-store company is making major strides on multiple fronts. Internation-
reduced water use by 33 percent per garment ally, the company continues to branch out — everywhere. Customers can
produced and has used renewable sources of now experience Gap brands and touch products in 39 countries, up from just
energy for more than 33 percent of its worldwide six countries in 2007, including 14 (soon to be 45) in China and its first in
needs. Meanwhile, $47 million went toward South America, in Chile. In its goal to optimize across multiple brands, chan-
design, research and product development, keep- nels and geographies, the company brought together its outlet and specialty
ing its brands holding steady at either the No. 1 divisions, brought its creative talent together under one roof in New York and
or No. 2 U.S. market position by units sold, in shifted to one international division, led out of London. This year, Gap will
most product categories in which the company close nearly 200 U.S. stores while focusing on reviving fashion at home and
competes, according to the NPD Group. Wal- expanding globally; Old Navy will open its first store outside North America,
mart, Target and Kohl’s took the prizes for largest in Japan; Athleta will open about 50 more U.S. stores; and Piperlime will open
customers, accounting for 25 percent, 16 percent its first brick-and-mortar store, in New York. Direct business was up more
and 6 percent, respectively, of total sales in 2011, than 20 percent to more than $1.5 billion, with the company shipping to 90
while international sales represented 13 percent countries. Since launching an e-commerce site in China last year, online
and direct-to-consumer 8 percent of total sales. orders have been logged from more than 330 cities in that country!
#27 Maidenform Brands #28 Carter’s
While revenues were up 8.9 percent company-wide — with A look at the CIA’s “World Factbook” shows that in rankings of
notable increases across shapewear (up 25 percent), mass the top 25 countries by fertility rate, only one — Afghanistan —
merchants (24 percent), international markets (23 percent), is not in Africa. Sounds like a challenging, but potentially fruit-
Donna Karan brands (41 percent), panties (26 percent); and ful, opportunity, if you’re looking for kids to clothe… Here in
online sales (31 percent) — gross margin pressures the US of A, Carter’s increased its leading share of the young
depressed the company’s net income, lowering its profit children’s wear market to 16 percent but struggled with the
margin and dropping Maidenform 15 spots on the Top 50. spike in cotton prices, which sent its product costs soaring by
The company also saw a 22 percent decline in its private- about 20 percent (or nearly $200 million), ultimately taking a
label business and a slower growth rate of approximately 5 chunk out of its net income, which fell by 22.2 percent. With its
percent across its department and national chain store busi- profit margin down 297 basis points, the company dropped 18
nesses — trends that CEO and director Maurice S. Resnik spots on the Top 50, but Carter’s forged ahead by strengthening
says he expects will reverse this year. Founded by entrepre- products, raising consumer prices, curtailing spending and
neurs Ida Rosenthal and Enid Bissett in 1922, the company increasing investments in its high-margin retail, e-commerce
celebrates its 90th anniversary this year with its innovative and international growth initiatives, which resulted in record
spirit alive and well — and still focused on women and their sales; increased U.S. sales of its Carter’s and OshKosh B’gosh
curves. This year will see the introduction of three new col- brands by 17 percent and 7 percent, respectively; e-commerce
lections for shaping, lifting, smoothing, slimming and pro- sales up by more than 200 percent to $73 million; and interna-
viding extreme comfort. tional sales up from $35 million to $136 million.
www.apparelmag.com • JULY 2012 25

17. THE TOP 50
#29 PVH Corp.
Flying back onto the Top 50 after just missing the cut in 2011, PVH
was led by global designer lifestyle brands Calvin Klein ($7.6 billion
in global retail sales) and Tommy Hilfiger ($5.6 billion in global retail
sales), both of which put up double-digit growth and together repre-
sented approximately 75 percent of the company’s business. In 2011,
the company focused on product, sourcing, infrastructure and new
marketing programs while enhancing platforms globally, including in
Asia, where it established joint ventures in China and India for its
Tommy Hilfiger brand, which it acquired in 2010. Although it main-
tained a leading market position in the U.S. dress shirt and neckwear
categories, PVH was challenged by cost pressures on its moderately-
priced Heritage brands and is streamlining its portfolio by exiting its
licenses for Timberland men’s sportswear and Izod women’s whole-
sale sportswear. The year also marked the corporate name change
from Phillips-Van Heusen to PVH, a reflection of both its roots and
the company’s tremendous growth beyond the Van Heusen brand.
#30 rue21
Targeting “anyone who wants to look and feel 21” (and I think that’s just about everybody, although everyone on its website
appears to be just hitting legal drinking age), the specialty retailer opened 120 stores and converted 38 existing locations into its
rue21 etc! format, which typically is more profitable, featuring an expanded area for categories that offer even higher margins than
apparel, including accessories, intimate apparel, footwear, jewelry, beauty products and fragrances. By fiscal year end, approximately
80 percent of its 755 stores were in the rue21 etc! layout, and plans are to open another 120 new stores and convert 30 this year in
the small-town and middle-market locations where it does business and which the company says are “starved for fashion.” Appar-
ently that’s a big opportunity: rue21 is marching toward an expected base of 1,500 locations.
#31 The Warnaco Group
Calvin Klein, with an appeal that new CEO Helen McCluskey says “transcends geography, gender and age,” continues as the driver
of growth in Warnaco’s portfolio and was up 12 percent to $1.9 billion, accounting for 75 percent of total revenue, while its heritage
brands, led by Speedo, were profitable and returned to a high-teen operating margin, despite a soft year in its Chaps brand. Overall,
international business grew by 17 percent, accounting for 60 percent of total revenue, with sales from Asia and Latin America up 28
percent. Its U.S. and European business presented more of a challenge, with Southern Europe in particular turning in a disappoint-
ing performance. Direct-to-consumer growth was up by 28 percent to $726 million, with that division reporting a four-wall operat-
ing margin up to a whopping 22 percent. Wholesaling is 71 percent of its business, but Warnaco also goes direct-to-consumer
online and through more than 1,750 of its own Calvin Klein retail stores. One of the goals set forth in its new five-year plan is for
direct-to-consumer sales to drive two-thirds of its growth, with full-price stores leading the way. To accomplish this, the company
has reorganized its Calvin Klein management into two groups: one focused on creative and the other on commercial execution.
26 JULY 2012 • www.apparelmag.com

18. THE TOP 50
#32 The Men’s Wearhouse
Up 10 spots, the company experienced one of its best years ever with revenues up 13
percent to $2.4 billion and net earnings up 78 percent, marking the largest growth
rate in its nearly four-decade history. Men’s Wearhouse sold a record-breaking 3 mil-
lion suits, driven in part by the growing demand for the flattering, slim-fitting silhou-
ette of its modern fit styles, whose sales reached $300 million in 2011, while its
Canada-based Moore’s nameplate hit a record $268 million in sales. Other standouts
include: 1) a partnership between Men’s Wearhouse and Vera Wang to launch Black
by Vera Wang, a collection of modern, sophisticated rental tuxedos; 2) The opening of
25 smaller-format stores; enabled by the growth of its tuxedo business, the company
is entering smaller markets than it could otherwise profitably operate in, including in
Billings, Mont.; Rapid City, S.D.; Idaho Falls, Idaho; and Cheyenne, Wyo. 3) continued courting of big and tall customers, who com-
prised half of all meanswearhouse.com sales; 4) New online initiatives, a mobile app for booking appointments, in-store wireless;
and 5) complete redesign of its management training program, and the hosting of 55 employee black-tie holiday parties.
#33 American Eagle Outfitters
The teen specialty retailer experienced a nice lift in sales (including comps up 3 percent)
and earnings and a slight bump in profit margin, holding steady at No. 33 on the Top 50
as it tries to find the sweet spot when it comes to right-sizing its stores, inventories and
nameplates and carving out its place between rivals including value-priced Aeropostale
and higher-priced Abercrombie & Fitch. The company hasn’t been shy about testing new
retail concepts, but it’s also willing to cut its losses quickly when they don’t pan out, as it
did in 2010, closing its Martin+Osa brand, and in May, announcing plans to exit its 22-
store 77kids concept, which posted a loss of $24 million on sales of $40 million last year.
Under new CEO Robert Hanson, a former Levi Strauss executive, the company is
revamping its sourcing and merchandising strategy to focus on faster fashion turns and
selling out of merchandise each season, to avoid offering deep discounts on dated mer-
chandise. The 1000-plus-store retailer remodeled 106 AE stores in 2011 and will take on
another 100 in 2012. It also continues to expand globally, this year opening its first flag-
ship outside the United States, in Japan.
#34 The Children’s Place #35 Ever-Glory International
The largest pure-play children’s specialty apparel retailer in North Adding 174 La Go Go stores in just 12-months for a
America slips four spots in a year that was productive despite a dis- total of 467, the company is flexing its retail muscles as it
appointing fourth quarter whose unseasonably warm weather transforms itself from supplier to Chinese fashion chain,
forced the company to take aggressive markdowns to clear its winter offering fashion designs at lower prices than similar
apparel. That, coupled with record-high apparel costs, took a toll on global brands. In its expanding reach, mostly in China’s
margins and earnings. Still, comp-store sales increased in the sec- Tier-2 or Tier-3 cities such as Zhengshou and Taizhou,
ond half of the year in U.S. stores, and its e-commerce business but also in Tier-1 cities including Beijing and Shanghai,
grew by double digits, to approximately $176.2 million, accounting the company’s retail growth is reflective of macro-
for about 10 percent of total sales. demographic and economic trends in China, including
To reduce operating costs, in the the continued rise of the middle class beyond the
first quarter fiscal 2012 the 1,062- biggest cities, the growing prominence of Chinese
store company consolidated from brands and the decreasing reliance of Chinese apparel
three to two U.S. distribution cen- makers on the export market. Although retail operations
ters, streamlined its field workforce racked up sales of $53.5 million in 2011, wholesale oper-
and restructured corporate head- ations still accounted for the lion’s share of $162.2 mil-
quarters while also tightly manag- lion in sales, with Ever-Glory’s full-package operations
ing inventories. Meanwhile, there’s offering casual wear, sportswear and outerwear to cus-
been a lot of movement in the C- tomers in China (53.5 percent of wholesale revenue),
Suite, as former Kellwood execu- Germany (14.5 percent), the U.K./Europe (12.6 percent),
tive Steven Baginski took the reins United States (10.1 percent) and Japan (9.4 percent).
as CFO in April, while COO Eric
Bauer left the company last month.
28 JULY 2012 • www.apparelmag.com

19. THE TOP 50
#36 Destination Maternity #37 G-III Apparel
Pregnancy is big business, but when you’re confronting a 7 One of the warmest winters on record contributed to an 11-
percent dip in the U.S. birth rate from 2007 to 2010, on top of spot slide down the Top 50 for G-III — whose core business
an already tough macroeconomic environment — and selling remains in outerwear — proving its decision to diversify into
in a niche characterized by limited repeat business — connect- other categories all the more prescient. As it is for PVH and
ing with the customer is all the more important. Destination Warnaco, Calvin Klein is playing a major role, driving its bet-
Maternity has developed a real community online and off to ter sportswear and becoming the cornerstone of its depart-
help mothers and mothers-to-be, with stores offering preg- ment store business in that category, a position that G-III is
nancy classes, and online community boards covering topics using to drive sales in all of its brands, including Jessica Simp-
ranging from “trying to conceive” to “blended families.” It son, Vince Camuto, Eliza J, Kensie, Andrew Marc and Guess.
must be paying off, as record earnings and a rising profit mar- Calvin Klein is also behind the success of its suit and separates
gin must surely be a measure of the company’s success in division and, along with Tommy Hilfiger, its new handbag
building relationships. Although it did not meet its stated sales, and luggage business, which generated approximately $50
earnings or comp-store goals, the world’s largest designer and million in sales in 2011. Spurring G-III’s performance apparel
retailer of maternity apparel continued to pay down debt, initi- business? You guessed it. And while its wholesale customers
ated a regular quarterly cash dividend, and accomplished a sig- are allocating more floor space for the fast-growing perfor-
nificant nationwide expansion with Macy’s. It continues to mance trend, G-III is getting a piece of the action, adding to
grow through new licenses, leased departments, franchises its retail segment — including Wilson, Andrew Marc and
and U.S. and international stores. Most recently, it opened its Vince Camuto outlet stores — by opening its first Calvin Klein
first Destination Maternity store in India, launched online Performance store in April, in Scottsdale, Ariz., with plans (via
shopping in South Korea and announced an exclusive licens- joint venture) to open another 12 locations throughout main-
ing agreement to design, produce and distribute a new Jessica land China and Hong Kong in the coming year.
Simpson maternity collection.
#38 G&K Services
Although it began the year with shrinking sales, its earnings and profit margin took a healthy climb, and the provider of branded
work apparel and facility services programs ended fiscal 2011 with 4.5 percent growth in quarterly organic rentals, despite a weak
economy still struggling with high unemployment. The company generated $67 million in cash from operations which it used to
pay down debt by $39.7 million and to fund its dividend, which it increased for the sixth consecutive year. The game plan continues
to call for: 1) redoubling focus on customer satisfaction, which is up more than 25 percent, along with customer retention, which
equaled its best level in six years; 2) improving execution, to build on new account sales up nearly 30 percent over the previous year;
3) continuing to manage costs aggressively; and 4) addressing underperforming locations, whose improved 2011 results contributed
to a boost in operating income. Operating margin expanded to 7.4 percent over 5.9 percent the previous year.
#39 Ann Inc.
Actress Kate Hudson is the new face of Ann Taylor, and small is the new
face of higher profits, as its smaller new concept stores turned in 50 per-
cent higher productivity than the balance of the chain. It opened 17 and
downsized or converted another 23 existing stores to the new format,
and on the strength of their results will open another 40 this year, as it
aims to get its mojo back in its store channel, which did not meet expec-
tations in 2011. Nonetheless, Ann turned in a strong year, with increases
in sales (including comps), net income and profit margin driven by
strong growth in its factory and e-commerce channels — which should
get another boost from its new e-commerce platform, designed to
improve the online shopping experience and give consumers better
access to inventory across channels. In 2012, LOFT will continue to
expand into small- to mid-sized markets, which have proven successful for the
brand; grow its LOFT Outlet stores (it added 38 in 2011 for a total of 74) and its
Ann Taylor Factory stores; and expand globally, adding international shipping
capabilities online, followed by stores in Canada.
www.apparelmag.com • JULY 2012 29

20. THE TOP 50
#40 Oxford Industries #41 Superior Uniform Group
Its rollercoaster ride on the Top 50 (No. 3 in
2011, No. 43 in 2010) is likely more related
to acquisitions accounting than a reflection
of its strength. Sales were up 26 percent
and operating income was up 63 percent,
attributable in part to its first full year of
ownership of Lilly Pulitzer. It’s instructive
to pull up and take a bird’s-eye view of
Oxford’s timeline: seven years ago, branded
apparel accounted for less than half of its
sales; today, it represents more than 95 per-
cent, with private-label manufacturing
comprising the balance. By distribution,
Its three-spot slide belies the growth in the company’s sales, earnings and profit
margins, not to mention its gain in market share, due in part to the heavy invest-
ment in raw material inventories it made to hedge against the cotton shortage.
Although that initially proved fruitful, the company was hurt by its investment
when raw-material prices began declining in the latter part of 2011, and the com-
pany still held three to six months of inventory, which cut into margins in the
fourth quarter and will affect 2012 as the company works through its higher-
priced stash. A $580,000 detailed market analysis consulting project conducted
last year also cut into earnings but should prove beneficial in capitalizing on
future opportunities. Meanwhile, its remote staffing business, The Office Guru,
continues to pay off, with net sales up to $2.93 million compared to $1.02 million
the previous year. The company’s strong financial position leaves the door open
for new ventures, such as its everyBODY media division launched last year, as
well as for strategic acquisitions and stock buyback programs.
#42 Delta Apparel
The company recorded its eighth consecu-
tive year of record sales for fiscal year end-
ing June 2011, driven by organic sales
growth, the 2010 acquisition of The Cotton
Exchange and new license agreements, but
for the most recent nine months saw a net
loss of $7.3 million. This drop is attributable
in large part to 2011 record-high cotton
prices, which continue to cause turmoil
particularly in its blank T-shirt business, as
customers continue to destock inventory
sales are split 50/50 between wholesale and while holding off on making speculative buys in anticipation of lower future
direct-to-consumer (retail and e-commerce), prices. Additionally, continued weakness in the economy and slower call-outs for
with direct-to-consumer tripling in sales military gear have taken a toll on its Soffe business, which comprises about half
since 2004. Tommy Bahama, with double- of its branded business, offsetting gains in Junk Food, To the Game and Art Gun.
digit growth fueled by strong comps and While the company projects an earnings loss for fiscal 2012, CEO Bob
rapid growth in e-commerce and its Humphries, in an April earnings call, expressed “cautious optimism” for a return
women’s business, opened its first company- to normal growth patterns in 2013, citing normalizing cotton costs, as well as
owned international store in March, in internal measures that are incurring short-term costs but should pay off in the
Macau, to be followed by stores in Singa- long run. A few examples: it just completed the conversion of The Cotton
pore, Hong Kong and Tokyo, and expects to Exchange and To The Game to BlueCherry, putting all branded business on the
surpass $500 million in sales this year. Lilly, same ERP; is moving some private-label functions to El Salvador; modernizing its
with sales up 30 percent, is a social media decoration equipment; investing in new capabilities for mobile and tablet devices;
maven boasting 400,000 Facebook fans and developing microsites for its brands; and recently opened a Salt Life flagship
500,000 consumer emails. store. Fun fact: Junk Food teamed up with Rock the Vote to create a T-shirt that,
when scanned with your phone or wireless device, allows you to register to vote!
30 JULY 2012 • www.apparelmag.com

21. THE TOP 50
#43 Abercrombie & Fitch #44 Aeropostale
The teen specialty retailer made big headlines (so, what else is new?) last Just two years ago the company hit historic highs
year when it offered to pay “Jersey Shore’s” Mike “The Situation” Sor- but tumbles 35 spots as difficult macroeconomic
rentino not to wear its clothes. In its statement, considered by many to be conditions, fashion missteps and competition from
a marketing ploy vs. a genuine expression of dismay, the company its rivals pummeled Aeropostale from all sides. Its
expressed concern that Sorrentino’s association with the brand could decline coincides with its first few quarters under
cause “significant damage” to its image and might be “distressing” to the leadership of new CEO Thomas Johnson, who
many of its fans. Regardless, the company’s sales were up 19.9 percent set forth the following initiatives as keys to getting
on the strength of its direct-to-consumer and international growth, the company back on track: 1) evolving the mer-
although earnings were down by 15 percent and profit margin fell by 126 chandise assortment with fresh fashion; 2) focusing
basis points. CFO and executive vice president Jonathan Ramsden told on brand messaging and marketing including via
investors last month that the company will close 180 underperforming mobile and social channels and a newly designed
U.S. stores, primarily its A&F and kids brands, as it shifts its focus to store format; 3) investing in infrastructure and
overseas markets, especially in Europe and Asia, where sales are growing technology, to include the continued implementa-
and profit margins are higher. With just four global locations three years tion of its workforce management tools and the
ago, it now boasts 107, with 81 in Europe, seven in Asia and 19 in first phase of implementation of its assortment
Canada. By brand, Hollister has the lion’s share (84), followed by planning and PLM tools; and 4) regaining market
A&F/kids (20) and Gilly Hicks (3). Even here in the United States, the share while investing in future growth, including
majority of shoppers in its flagship Fifth Avenue store are international the expansion of its P.S. concept (which should
tourists — primarily Europeans, but also Latin Americans, particularly reach the 100-store mark by the end of this year)
from Brazil, and a small number of Asians. and its e-commerce business.
#45 Levi Strauss
President and CEO Chip Bergh says he joined the company last year because it has 1) “what it takes to be the best,” including great
brands; claim to the title of the original jean; talented people; and a global footprint operating in more than 110 countries; and 2) for
the challenge. “Despite all of the ingredients to be a top performer, this company could have done better over the last decade,” he
stated in his letter to shareholders. While Levi’s has gained positive momentum — with 8 percent compound annual revenue
growth in the past two years spurred by innovations including its Levi’s® Curve ID jeans, its Water<Less™ jeans (cumulatively sav-
ing 172 million liters of water since its launch last year), its Commuter Series (see Apparel’s June issue for the complete story) and its
Dockers® Alpha Khakis, as well as the launch of the Denizen brand in more than 1,700 Target stores — its top-line success has
come at a cost to the bottom line. To grow the latter faster than the former, Bergh has put forth a plan to keep a sharp focus on the
consumer and innovation while also developing a more competitive cost structure that takes advantage of its market scale and its
brand synergies. Levi’s newly refined business model will be structured along the three pillars of brands, commercial operations and
global retail, and the company will scale commercial operations across all three, rather than operating with three brands, each with
its own sales forces and operating functions.
#46 Perry Ellis
The company slid two spots and its profit margin dropped 50 basis points as
it faced challenges in the second half of fiscal 2012 driven by the difficult
holiday season (including requests from retailers for later deliveries of goods
and a significant increase in promotional markdowns and sales allowances)
and product setbacks within its Perry Ellis and Rafaella collection busi-
nesses. Sales of $123.3 million in its Rafaella business, which it acquired in
2011, contributed to a 24 percent increase in revenue; organic revenue
growth came in at 8.5 percent. In launching a strategic review of its brands
and businesses with a goal of focusing on those that offer the best potential
for profitable growth, Perry Ellis reports that it will focus on golf, men’s and
women’s sportswear and swim, capitalizing on its strengths in wholesale
and direct-to-consumer as well as international expansion, while it also
continues to create exclusive brands for retailers. It has identified some
smaller brands and businesses whose combined revenue is approximately
$30 million to $40 million and which it plans to liquidate and close by the
end of fiscal 2013. It has also identified approximately $5.5 million in annual
cost savings it will achieve by streamlining its infrastructure.
32 JULY 2012 • www.apparelmag.com

22. THE TOP 50
#47 Wet Seal #48 Stage Stores
At year end, 65 percent of this small town and
neighborhood retailer’s 813 stores were in towns
with a market area population below 50,000,
across 40 states. The company added 37 new
stores, 28 under its Goody’s nameplate, and the
first three of its newly launched Steele’s off-price
stores, a concept it will expand to 25 to 30 loca-
tions this year. With e-commerce growth its top
priority in 2011, the retailer increased its presence
on social media, expanded its brand name and
private-label offerings online and created a more
customer-friendly online shopping experience —
The company put a twist on its celebrated smart use of mobile and social all of which contributed to an increase in visitors,
technologies by offering free Android-powered mobile phones (with the and e-commerce sales of $8.6 million. Its finan-
purchase of a two-year wireless plan) to shoppers who tried on jeans at any cial results — earnings down 17.6 percent and
of its stores as part of a back-to-school promotion of its new Denim Shop. profit margin down by 51 basis points to 2.05
Each smartphone was equipped with iRunway, Wet Seal’s mobile applica- percent — reflected the economic pressures faced
tion for download, which allows users to browse outfits on its website and by its core moderate-income customer. Like
purchase directly from the phone. Wet Seal continued the focus on denim other retailers, it was forced to fight for wallet
with the opening of its second BLINK store, at the Walt Disney World share in a highly promotional business environ-
Resort in Florida. The concept was developed out of the retailer’s strong ment which led to lower merchandise margins.
denim focus and offers a wide variety of fits, lengths and washes under Blue Controlling what it could, the company focused
Asphalt, Wet Seal’s exclusive label. The company plans to open approxi- on carefully managing expenses and inventory,
mately 25 to 30 Wet Seal stores (net of store closings) in fiscal 2012, bring- which resulted in, respectively, a 50 basis-point
ing its total to approximately 500, while maintaining its existing Arden B drop in its SG&A rate and comp-store invento-
store count (86) as it focuses on improving merchandising and marketing ries up 1.7 percent.
strategies in that business.
#49 Stein Mart #50 Wacoal
Like so many retailers, Stein Mart started the year well The Japanese manufacturer, wholesaler and retailer of women’s foun-
but struggled in the second half, slipping 14 spots on dation garments and lingerie and other apparel and textile products is
the Top 50. Jay Stein, who has stepped back into the growing closer to its goal of helping women the world over “to
role of CEO as the company searches for a replace- express their beauty” as it continues to expand internationally. It
ment, faults the proliferation of coupon use at the already has 30 operating companies overseas, and is accelerating
company as diluting its brand message of “delivering expansion in China and the United States, using the latter as a base
high-quality, fashion merchandise at everyday low from which to launch into new markets including Canada, Brazil and
prices.” In the fourth quarter Stein Mart began a major Mexico. Wacoal inched back on the Top 50, but results after one year
initiative to reduce its reliance on coupons, achieving a of its “medium-term management plan” launched in April 2011 were
decrease in their usage of more than 20 percent in that mixed: domestic sales were down partly due to Japan’s earthquake
quarter over the same period in 2010. Its ultimate goal and tsunami, although promotions highlighting the results of its
is to reduce coupon usage by 50 percent, mostly by research on aging led to brisk sales of brassieres; international sales
eliminating their use on regular-priced merchandise. were good but operating income remained flat because of significant
While it has been on a mission to increase comp-store investments in China; its subsidiary, fabric manufacturer Lecien, did
sales for some time now, the year saw another dip of not reach operating income goals, while a sales drop of more than 10
1.1 percent, but the company holds a strong, debt-free percent at its Peach John lingerie retail stores took a major toll on
financial position and has a number of merchandise- overall financial results. In 2012, international expansion and re-
based initiatives on tap intended to reverse that slide, growing Peach John will rank among the company’s highest-priority
as well as a new merchandise information system. tasks as it also focuses on wholesale operations in its mainstay
Meanwhile, store remodels — 40 in 2011 and 50 department-store channel, reducing inventory per item but adding
planned for this year — have met with positive cus- SKUS and turning inventory faster; right-sizing sales personnel at
tomer feedback. Its systems infrastructure also got a stores; tapping Lecien to help expand into the lower end of the mar-
facelift in 2011 with new registers, servers and commu- ket in China; and strengthening collaboration between Wacoal and
nications links installed in all stores. newer Group members Lecien and Peach John.
Jordan K. Speer is editor in chief of Apparel. She can be reached at jspeer@apparelmag.com.
www.apparelmag.com • JULY 2012 33