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GOLETA, Calif.--(BUSINESS WIRE)--July 10, 2008--Deckers Outdoor Corporation (NASDAQGS: DECK) today announced that it has entered into a joint venture with Stella International Holdings Limited (SEHK:1836) for the opening of retail stores and wholesale distribution for the UGG Australia(R) brand in China. Initial plans call for the opening of one to two stores in 2008. The joint venture will be owned 51% by Deckers and 49% by Stella International. The initial investment in the joint venture is $1 million to be contributed by each party in proportion to their respective ownership in the joint venture. The estimated total investment amount for the joint venture is approximately $5 million.
Angel Martinez, President and Chief Executive Officer of Deckers, commented, "We are very excited about this initiative. China has quickly become a dynamic market for U.S. consumer branded footwear and apparel and we are confident that UGG Australia's lifestyle message and product line will resonate very well in this new market. We have a long term relationship with Stella having worked with them for over 12 years and look forward to continuing to work closely with them in order to maximize the potential of this extremely compelling opportunity for our Company."
Stella International develops and manufactures footwear products for leading casual and fashion footwear companies worldwide. The Company manufactures footwear at its facilities in Guangdong Province, China and through processing and contractual arrangements in both China and Vietnam.
Mr. Jack Chiang, Chairman of Stella International, said, "We believe the UGG Australia brand is the ideal vehicle to launch our first joint venture since our public listing late last year. With our extensive experience in footwear manufacturing and operation of over 100 high end Stella Luna and What For retail stores we are confident in our ability to quickly penetrate the market. In addition, this strategic alliance with Deckers will enable us to enhance our strong foothold in the consumer sector throughout Greater China."
Deckers Outdoor Corporation strives to be a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. Teva(R), Simple(R), UGG Australia(R), Tsubo(R), and Deckers(R) Flip Flops are registered trademarks of Deckers Outdoor Corporation.
This news release contains statements regarding our expectations, beliefs and views about our future financial performance which are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or future or conditional verbs such as "will," "would," "should," "could," or "may" or by the fact that such statements relate to future, and not just historical, events or circumstances, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for the Company's markets and the demand for its products. The forward-looking statements in this news release regarding our future financial performance are based on currently available information as of the date of this release, and because our business is subject to a number of risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties include, among others: our ability to anticipate fashion trends, consumer demand or inventory needs; whether the UGG brand will continue to grow at the same rate it has experienced in the recent past; impairment charges related to the Teva brand intangible assets if Teva product sales decline to a point that the fair value of our Teva reporting unit does not exceed its carrying value; shortages or price fluctuations of raw materials that could interrupt product manufacturing and increase product costs; increased costs of manufacturing in China due to currency fluctuations and actions by the Chinese government; our ability to implement our growth strategy; the success of our customers and the risk of losing one or more of our key customers; our ability to develop and protect our brands and intellectual property; the risk that counterfeiting can harm our sales or our brand image; our dependence on independent manufacturers to supply our products; the risk that retailers could postpone or cancel existing orders; unpredictable events and circumstances and currency risks related to our international operations; a downturn in key market economies; volatile credit markets; the risk of losing key personnel; and the sensitivity of our sales to seasonal and weather conditions. Certain of these risks and uncertainties, as well as others, are more fully described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, which we filed with the Securities and Exchange Commission on February 29, 2008. Readers are cautioned not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date of this release. The Company undertakes no obligation to publicly release or update the results of any revisions to forward-looking statements, which may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks and uncertainties highlighted herein should not be assumed to be the only items that could affect the future performance of the Company.
CONTACT: Deckers Outdoor Corporation
Tom Hillebrandt, 805-967-7611
Chief Financial Officer or
Integrated Corporate Relations, Inc.
Chad A. Jacobs/Brendon Frey, 203-682-8200
SOURCE: Deckers Outdoor Corporation