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Top 50 Sponsored by COVER STORY

This year’s annual 50 list of the most profitable publicly traded apparel companies on the U.S. stock exchange reveals that even in a tough economy, some firms continue to shine on. True Religion nabs the No. 1 spot this year, achieving a profit margin of 16.04 percent, while American Eagle Outfitters, Abercrombie & Fitch and bebe hold strong at the top of the list. There were also big changes from last year’s results: Levi Strauss charged up to the No. 9 position vs. the No. 30 spot last year, while Cache, Charlotte Russe and Warnaco also made significant gains. Interestingly, several companies that showed significant profit margins achieved those with lower revenues and/or lower net incomes than in the previous year. Limited, for example, reported sales down by 5.03 percent, but net income up by 6.21 percent, resulting in a profit margin of 7.09 percent — higher than last year’s profit margin of 6.33 percent.

Likewise, Gap saw its sales decline by 1 percent, but increased net income by more than 7 percent, showing profit margins of 5.28 percent. This trend may possibly be attributed to an increasingly smart use of technology, such as the use of systems that allow companies to optimize their pricing and markdown plans. Some companies may be better analyzing their POS data to better hone their product to their target customers, or to allot the appropriate sizes and styles to individual stores. Whatever the case, these companies prove that greater sales are not the only way to greater profits. And while still profitable, some apparel companies took a steep tumble. Chico’s, for example, plummeted from the 5th spot to the No. 28 spot, while J. Crew just made the cut-off, falling from spot No. 21 to No. 50. Christopher & Banks and Timberland also took steep dives. Read on to learn how Top 50 executives are confronting their biggest challenges, focusing on sustainable business practices and much more.

Los Angeles-based premium company True Religion has become known for attention to detail, from - forward seams, to intricate embroidery and innovative hand-sanded vintage washes. The line also includes a wide variety of colored corduroy pants, , , , , , , T-shirts and more.

12 JULY 2008 • www.apparelmag.com True Religion Brand Jeans RANKED #1 CEO, Chairman of the Board and Creative Director: Jeff Lubell

A recent project with great ROI: Most recently, I would have to say our Consumer Direct Segment (company branded stores) rollout, which was built on a foundation to enable rapid scale up. A current technology focus: We are currently in Jeff Lubell the process of investing in an enterprise resource CEO, Chairman of the Board and planning (ERP) system, which would deploy Creative Director integrated financial planning, and supply chain True Religion Brand management, with a focus on demand planning and Jeans forecasting. This will be based on the latest software by Oracle. How the growing focus on sustainability has changed your business: As a publicly traded company, we have always been focused on business sustainability. The popularity of True Religion apparel As a result, we are very focused on our processes and procedures. continues to rise. A challenge we are facing: Rapid growth in all of our segments.

Cato Corp. RANKED #36 CEO: John P. Derham A recent project with great ROI: We have implemented a of technology projects recently from which we are getting a good return, including a new loss prevention system designed to identify theft and fraud through our POS system, payroll cards that reduce the cost of paying our associates and a new product lifecycle system that has streamlined our product development process. A current technology focus: We are currently investing in technology to increase efficiencies in our support functions including distribution, finance and product development. Because of the uncertainty of today’s environment, we have pulled back on initiating larger projects. How the growing focus on sustainability has changed our business: We have recently refocused our vendor code of conduct to ensure that our suppliers share Cato’s commitment to protect and preserve the environment and meet labor standards and all ethical and legal requirements. In our stores, we continue to implement energy management programs to benefit both the environment and our business, including using more energy-efficient lighting in new stores and retrofitting our existing stores. A challenge we are facing: Obviously, the current difficult economic environment and its significant impact on the middle to lower income level households that are the largest component of our customer base will be challenging for us. Also, like all apparel retailers, as the cost of labor, raw materials Among other technology projects, and fuel increase in our source countries, we will be facing Cato Corp. recently implemented a John P. Derham pricing pressures that we have not faced during the last decade new product lifecycle management CEO of price deflation. system that has streamlined its Cato product development process.

www.apparelmag.com • JULY 2008 13 A ranking of publicly traded apparel companies (U.S. stock exchange), with at least THE TOP $100M in annual sales, by their profit margins for the most recent fiscal year. SALES NET INCOME % Profit Profit Last Most % Most Change Margin, Margin, Year’s Recent Previous Change Recent Previous Net Most Previous RANK Rank Company50 FY FY FY Sales FY FY Income Recent FY FY 1 New True Religion Brand Jeans Dec. $173.3 $140.5 23.35 $27.8 $21.7 28.11 16.04 15.44 2 1 American Eagle Outfitters Jan. $3,055.4 $2,794.4 9.34 $400.0 $387.4 3.25 13.09 13.86 3 3 Abercrombie & Fitch Jan. $3,749.9 $3,318.2 13.01 $475.7 $422.2 12.67 12.69 12.72 4 2 Bebe Stores June $671.0 $579.0 15.89 $77.3 $73.8 4.74 11.52 12.75 5 New lululemon athletica Feb. $274.7 $148.9 84.49 $30.8 $7.7 300.00 11.21 5.17 6 4 Guess? Dec. $1,750.0 $1,252.7 39.70 $186.5 $131.2 42.15 10.66 10.47 7 7 Columbia Dec. $1,356.0 $1,287.7 5.30 $144.5 $123.0 17.48 10.66 9.55 8 8 Urban Outfitters Jan. $1,507.7 $1,224.7 23.11 $160.2 $116.2 37.87 10.63 9.49 9 30 Levi Strauss Nov. $4,360.9 $4,193.0 4.00 $460.4 $239.0 92.64 10.56 5.70 10 10 Nike May $16,325.9 $14,954.9 9.17 $1,491.5 $1,392.0 7.15 9.14 9.31 11 6 Cintas May $3,706.9 $3,403.6 8.91 $334.5 $323.7 3.34 9.02 9.51 12 15 Gymboree Jan. $920.8 $791.6 16.32 $80.3 $60.3 33.17 8.72 7.62 13 12 Dec. $606.6 $430.7 40.84 $52.6 $39.0 34.87 8.67 9.06 14 9 Polo Mar. $4,880.1 $4,295.4 13.61 $419.8 $400.9 4.71 8.60 9.33 15 14 Jos. A. Bank Clothiers Jan. $604.0 $546.4 10.54 $50.2 $43.2 16.20 8.31 7.91 16 13 VF Dec. $7,219.4 $6,215.8 16.15 $591.6 $533.5 10.89 8.19 8.58 17 16 Aeropostale Jan. $1,590.9 $1,413.2 12.57 $129.2 $106.7 21.09 8.12 7.55 18 New Maidenform Dec. $422.2 $416.8 1.30 $34.2 $27.8 23.02 8.10 6.67 19 New Nordstrom Feb. $8,828.0 $8,561.0 3.12 $715.0 $678.0 5.46 8.10 7.92 20 Back Jones Apparel Group Dec. $3,848.5 $4,087.0 (5.84) $311.1 ($144.1) 315.89 8.08 (3.53) 21 17 Phillips-Van Heusen Jan. $2,425.2 $2,090.6 16.00 $183.3 $155.2 18.11 7.56 7.42 22 28 Dressbarn July $1,426.6 $1,300.3 9.71 $101.2 $78.9 28.26 7.09 6.07 23 25 Limited Brands Jan. $10,134.0 $10,671.0 (5.03) $718.0 $676.0 6.21 7.09 6.33 24 New Men’s Wearhouse Feb. $2,112.6 $1,882.1 12.25 $147.0 $148.6 (1.08) 6.96 7.90 25 New Zumiez Feb. $381.4 $298.2 27.90 $25.3 $20.9 21.05 6.63 7.01 26 36 Gap Jan. $15,763.0 $15,923.0 (1.00) $833.0 $778.0 7.07 5.28 4.89 27 18 Tween Brands Jan. $1,014.0 $883.7 14.74 $52.6 $64.8 (18.83) 5.19 7.33 28 5 Chico’s FAS Jan. $1,714.3 $1,640.9 4.47 $88.9 $166.6 (46.64) 5.19 10.15 29 38 UniFirst Aug. $902.1 $821.0 9.88 $45.2 $39.2 15.31 5.01 4.77 30 41 Charlotte Russe Holding Sept. $740.9 $681.5 8.72 $36.3 $25.1 44.62 4.90 3.68 31 43 Cache Dec. $274.5 $279.0 (1.61) $13.4 $8.3 61.45 4.88 2.97 32 24 Oxford Industries June $1,128.9 $1,109.1 1.79 $52.1 $70.5 (26.10) 4.62 6.36 33 Back The Children’s Place Feb. $2,017.7 $1,668.7 20.91 $87.4 $60.0 45.67 4.33 3.60 34 44 The Dec. $1,860.1 $1,655.3 12.37 $79.1 $50.7 56.02 4.25 3.06 35 27 Ann Taylor Stores Jan. $2,396.5 $2,342.9 2.29 $97.2 $143.0 (32.03) 4.06 6.10 36 29 Cato Jan. $846.4 $875.9 (3.37) $32.3 $51.5 (37.28) 3.82 5.88 37 Back Wet Seal Feb. $611.2 $564.3 8.31 $23.2 ($12.8) 281.25 3.80 (2.27) 38 Back G-III Apparel Group Jan. $518.9 $427.0 21.52 $17.5 $13.2 32.58 3.37 3.09 39 New Rafaella Apparel Group June $191.3 $222.2 (13.91) $6.3 $12.6 (50.00) 3.29 5.67 40 44 Perry Ellis International Jan. $863.9 $829.8 4.11 $28.2 $22.4 25.89 3.26 2.70 41 New Citi Trends Feb. $437.5 $382.0 14.53 $14.2 $21.4 (33.64) 3.25 5.60 42 26 Christopher & Banks Feb. $575.8 $547.3 5.21 $17.0 $33.7 (49.55) 2.95 6.16 43 19 June $4,474.5 $4,403.5 1.61 $126.1 $208.0 (39.38) 2.82 4.72 44 20 Timberland Dec. $1,436.5 $1,567.6 (8.36) $40.0 $101.2 (60.47) 2.78 6.46 45 48 Hot Topic Jan. $728.1 $751.6 (3.13) $16.0 $13.6 17.65 2.20 1.81 46 49 Superior Group Dec. $120.5 $123.7 (2.59) $2.5 $2.2 13.64 2.07 1.78 47 31 Delta Apparel June $312.4 $270.1 15.66 $6.3 $14.8 (57.43) 2.02 5.48 48 35 Kenneth Cole Productions Dec. $510.7 $536.5 (4.81) $7.1 $26.8 (73.51) 1.39 5.00 49 Back Tarrant Apparel Group Dec. $243.7 $232.4 4.86 $1.7 ($22.2) 107.66 0.70 (9.55) 50 21 J. Crew Group Jan. $953.2 $1,152.1 (17.26) $3.8 $77.8 (95.12) 0.40 6.75

*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, because we have added foreign companies that trade on the U.S. stock exchange, etc. Dollar amounts are in millions of U.S. dollars. Levi Strauss & Co. is a privately held company that releases financial data publicly. Deb Shops, United Retail Group and Kellwood Co. have been acquired since last year. Wacoal is not included because as of press time, the firm had not released its fiscal 2007 results. Apparel does not include department stores in its Top 50 rankings. Nordstrom files with the SEC under “Retail - Family Stores” (SIC code 5651), not “Retail - Department Stores” (SIC code 5311). THE TOP 50

Warnaco Inc. RANKED #34 President, CEO and Director: Joseph R. (Joe) Gromek

A recent project with great ROI: Our direct-to-consumer initiative has been highly successful for our company, and allows us to take advantage of the global strength of the brand in retail stores and shops that we own. At the end of our first quarter, we operated just over 760 shops in our direct-to-consumer channel around the globe. Comparable store sales grew in excess of 11 percent in our first quarter and 10 percent in fiscal 2007. A current technology focus: We have several projects underway that address opportunities to improve efficiency throughout the organization. One of the most interesting is a multi-faceted implementation, focused on sourcing, which is targeted to reduce cycle times by as much as 20 percent. How the growing focus on sustainability has changed our business: As a Global Corporate Citizen, sustainability factors into all facets of the way we Warnaco’s Calvin Klein brand do business. We look at the organic nature of the raw materials used represents two-thirds of company sales. in our clothes and search for environmentally sound production processes, including the different wash methods we use to treat our denim. For Warnaco, sustainability means exploring packaging and labeling alternatives that require less consumption of natural resources while adhering to global labeling regulations. Ultimately, we try to be respectful of our use of natural resources and consumption of energy in all that we do. A challenge we are facing: Our business is performing well, which we attribute to the diversity in our sales and the power of the Calvin Klein brand, which represents two-thirds of company sales. Currently, we Joseph R. (Joe) all know the U.S. economy is challenged. Fortunately, we strategically positioned our business such that Gromek half our sales are generated outside the , and we have a tremendous amount of white space to President, CEO fill in and . Among the challenges we face, as we continue to develop our global business, is and Director Warnaco Inc. identifying appropriate retail locations and recruiting the best and the brightest to our business.

Hanesbrands Inc. RANKED #43 CEO: Rich Noll

A recent project with great ROI: Hanesbrands has numer- We have expanded our extensive use ous initiatives underway at any given time, both large and small, of lean concepts and to improve our business. These projects support two of our core now are using the lean methodology strategies: To sell more and spend less. Over the past two years, across our organization with more than our sales-focused initiatives have included successful investment 400 projects in place. We have created a Rich Noll in our biggest brands, including , Bali and Playtex, to consolidated professional purchasing CEO Hanesbrands Inc. develop new, innovative products and support them with com- organization using 21st century purchas- pelling marketing and advertising campaigns. This investment ing techniques such as coordinated core category spending, has paid off with market-share gains. online auctions and vendor management We are also creating value in executing a global supply chain A current technology focus: We continually stay abreast of strategy. We have generated significant returns — tens of mil- technical advances of new fabric characteristics to determine if lions of dollars — by consolidating into fewer, larger production there is a market application that is appropriate to our brands, facilities and expanding into Asia. Within a year of purchasing a business categories and product segments. For most of our sewing plant in in 2006 — our first company-owned product segments, we focus on comfort and fit, and we defi- production operation in Asia — we were able to use our pro- nitely have some advances in development. duction know-how to double output while reducing costs by 43 From a production and manufacturing standpoint, we are percent using the same number of sewing operators. much more focused on process improvement, which can yield

16 JULY 2008 • www.apparelmag.com THE TOP 50

from new technology or better ideas of how to operate. We extensively use lean manufacturing principles and philoso- phies across our organization, and we seek to continually improve our processes and practices. How the growing focus on sustainability has changed our business: Hanesbrands has been an industry leader in business ethics and environmental management for many years. We are well positioned to thrive in an environment that values and demands attention to sustainability, because we continue to operate in this way. For example, all Hanesbrands textile plants, no matter if they are located in the United States, the or Cen- tral America, are designed to meet or exceed local standards and adhere to environmental best management practices globally. For our facilities outside the United States, if stan- dards for certain environmental parameters are absent, we exceed those established in the United States. Like our other facilities, the textile plant we are building in Nanjing, , will adhere to the best global environmental management practices. We also are building office and retail space to leading environmental and energy efficiency standards. Recently, our Bentonville, Arkansas sales office was the first in the state to receive the U.S. Green Building Council’s Leadership in Energy and Environmental Design certification for office interior design. We are participating in the Green Building Council’s pilot program to create a sustainability LEED certi- fication program for commercial interiors for retail opera- tions. And we are seeking LEED certification for existing building operations with our headquarters in Winston- Salem, North Carolina. A challenge we are facing: The economic climate is the largest near-term challenge for all consumer products com- panies. This year, we are focused on executing sales and marketing programs for the key promotional periods. Our large retail partners continue to focus on driving large national brands to draw consumer traffic to their stores. The broader macro environment of cost and pricing, par- ticularly as it relates to 2009 and beyond, is prompting us to think differently about our business in general and pricing in particular. We are beginning to see systemic rising input costs — from cotton to energy — as well as other costs that are starting to work their way through the value chain. It is clear that sustained price deflation is over for much of the apparel industry. Over time, price increases will need to become a tactical tool in this new environment. We are in an industry where the careers of most buyers and sellers have been spent in a deflationary environment and mindsets can shift slowly. We are starting to see price increases in some select areas, but how much, how fast and how broad the price changes become remain to be seen. We will continue to monitor the environment and act accordingly.

www.apparelmag.com • JULY 2008 17 THE TOP 50

Men’s Wearhouse RANKED #24 Founder and CEO: George Zimmer

A recent project with great ROI: In 2007, we acquired and integrated After Hours , a 500+ store chain. We are now the largest tuxedo rental retailer in , renting in more than 1,000 locations in the United States, and 116 locations in . A current technology focus: A new ecommerce platform will enable us to George Zimmer more effectively scale and diversify our web properties. With that new CEO platform comes a suite of functionality that will help us better service our Men’s Wearhouse customers online and in-store. How the growing focus on sustainability has changed our business: Wool has always been renewable. A challenge we are facing: NPD reports that men’s suit sales have declined 14 percent in the previous 12 months, though our market share has grown from 17 percent to 19 percent. It has been our experience that men cut their discretionary spending during economic downturns.

The Men’s Wearhouse’s acquisition of After Hours Formal Wear makes it the largest tuxedo rental retailer in North America.

Perry Ellis International RANKED #40 Chairman and CEO: George Feldenkreis

A recent project with great ROI: Our acquisition strategy — We embrace this as an disciplined and opportunistic — has been a key driver of the opportunity, rather than an growth of our company. In different time frames, all of our issue or a problem. Internally, acquisitions have had substantial ROI. From in we have started multiple 1996, to Perry Ellis the brand in 1999, Jantzen-SWIM in 2002, sustainability projects — Salant in 2003, to Tropical Sportswear in 2005, and recycling, energy efficient most recently C&C California and by Shelli Segal last bulbs and sensors. Externally, February, we have been very successful in identifying, acquiring we are experimenting with and integrating brands and companies multiple organic and natural Perry Ellis’ acquisition strategy into our highly efficient operating fibers to address the growing has been a key driver of the growth of the company. platform. For the past six years, we have niche that sustainability offers. grown on average 20 percent in We feel the consumer is not ready yet for the prices that the revenues and 19 percent in net income. small production of organic cotton is creating, but when they A current technology focus: We are a are, we will be. technology-driven company that thrives A challenge we are facing: One word: Talent. Our industry on systems. We are finalizing the is highly competitive and still very fragmented. In the front end, deployment of our Oracle-RETEK suite, a you have less and less floor space, where you have to compete George Feldenkreis state-of-the-art system that will improve with more niche and faster, more nimble players, plus the Chairman and CEO our planning operations. We also use retailer’s private label. In the back-end, you have all the major Perry Ellis manufacturers from the Orient trying to become better at International geographical information systems to match our sales information with design and going directly to the retailer. There are many demographic data, which allows us to identify at the door level challenges. However, in this type of environment, what what assortment we have to provide to a customer by size and differentiates you from your competitors is talent. Our color. This is a major accomplishment of our MIS department. company, and we’d argue our industry, is suffering from the How the growing focus on sustainability has changed ability to find, hire, motivate and retain talent. There is certainly our business: Sustainability, as part of the general topic of a shortage of people who understand the ins and outs of the corporate responsibility, is a major area of focus for us. garment business.

18 JULY 2008 • www.apparelmag.com THE TOP 50

Cintas Corp. RANKED #11 CEO: Scott D. Farmer A recent project with great ROI: We have seen a tremendous return on investment since launching our new cargo line of pants and shorts last year. Cintas saw an opportunity to capitalize on the fit, function and feel that made so popular in the retail segment. By bringing it to the workplace, employees can now enjoy the same generous fit, Scott D. Farmer comfort and functionality while helping business owners promote a CEO Cintas Corp. positive company image. Not only has the new line improved our margins and our pricing, we also saw a significant increase in volume during the past nine months. In addition, Cintas now offers the line in three colors — navy, khaki, and black — giving our customers and their employees more versatility. A current technology focus: We are always working on implementing innovative fabrications and silhouettes to meet our customers’ needs throughout their daily operations. Cintas’ new cargo pant is extremely popular in the workplace. How the growing focus on sustainability has changed our business: It is important that Cintas delivers products that our clients require, but that we are forward thinking and offering solutions that will drive sustainability. Fabric innovation and efficiencies continue to drive this initiative for Cintas. A challenge we are facing: One of the biggest challenges is developing an eco-friendly product that is conducive to the uniform function, while still offering our clients a cost-effective solution. Also, with the high cost of fuel impacting the entire economy, it is important for Cintas to challenge its manufacturers to provide economical solutions so that we can continue to offer a quality product that adds value to the market through fabric innovation.

Columbia Sportswear RANKED #7 President, CEO, and Director: Timothy P. Boyle

A recent project with great ROI: While our primary focus is Omni-Shade™ clothing is produced on our wholesale business and serving our wholesale from a fabric rated for its level of customers, we remain on pace to expand our U.S. retail ultraviolet (UV) protection. A tight footprint during 2008, including opening several new first-line weave structure and fabric types such branded stores in key U.S. metropolitan markets. We believe as texturized synthetics and natural Timothy P. Boyle these and future branded stores will allow us to create stronger fibers, and even color selection, pro- President, CEO and Director emotional connections with consumers by presenting the duces sun protective properties. In Columbia Sportswear breadth and depth of our brands and seasonal initiatives in addition, some fabrics employed in the inspiring retail environments, increasing demand for our use of sun protective clothing are pre-treated with UV inhibit- products and ultimately benefiting our wholesale partners in ing ingredients during manufacturing to enhance their UV those markets. blocking capacity. A current technology focus: Recently, Columbia launched We continually look to improve our technologies, and Omni-Shade™ apparel featuring UPF (Ultraviolet Protection Columbia brings a full line of climatically protective outerwear, Factor) ratings to maximize our active consumers’ outside sportswear and products that enable customers to activities by minimizing the harmful effects of the sun. enjoy the great outdoors longer regardless of wind, water, cold Columbia Sportswear’s Omni-Shade™ is the first apparel fabric or hot temperatures. For decades consumers have been relying in the U.S. to be awarded the Seal of Recommendation by the on Omni-Tech waterproof/breathable apparel, with millions of Skin Cancer Foundation. The Seal is awarded for UV protection outerwear products sold worldwide. Now this proven technol- products with a minimum of UPF 30 that meet their specific ogy is available throughout the Columbia line. In addition, we criteria. In the spring line, Columbia has more than 130 styles of offer our new Omni-Shade UPF protection apparel and acces- Omni-Shade™ UPF products that have the Skin Cancer sories, and Techlite, our lightweight injection-molded footwear Foundation’s Seal of Recommendation for men, women and kids. technology.

20 JULY 2008 • www.apparelmag.com THE TOP 50

How the growing focus on sustainability has changed A challenge we are facing: Our brands are in an exciting our business: Beginning with the Spring 2008 season, we transition period during which we are investing heavily to introduced several alternative materials and construction ensure future success and long-term business growth, and methods to the apparel and footwear lines. We continually branded retail stores are a natural extension of our strategy. research alternative materials and processes for apparel, Since Columbia Sportswear first announced its retail expansion footwear and equipment. We look for this area to grow as strategy in 2007, we constantly monitor the retail marketplace technology changes and more resources become available in and real estate industry for unique retail opportunities. In the market. We also continue to look at opportunities to reduce Seattle and Portland, Oregon, we have secured two excellent our use of packaging, as well as consider use of alternative locations. We believe these new stores will increase visibility for packaging materials. Columbia Sportswear and our family of brands.

UniFirst RANKED #29 Chairman, President & CEO: Ronald D. Croatti

A recent project with great ROI: As part of a UniFirst Sales Stewardship Program, or LaundryESP, Force Automation (SFA) program, we’ve equipped all members which focuses on gaining efficiencies and of our sales team with sales productivity hardware and software being more enviro-friendly in all our to give them the best database management resources in their operations. profession. Each has a company-issued BlackBerry that is used To reduce chemical use and waste, Ronald D. Croatti as a customer relationship management tool. These computer each wash lot in every one of our launder- Chairman, President & CEO handhelds, with customized applications, allow reps to keep all ing facilities is now routinely tagged as to UniFirst their prospect and process information right at their fingertips, garment type and soil level so a pre-pro- including business prospects, names of key contacts, types of grammed computer can identify the exact formula for that par- products needed, schedules, updates and even tickler files for ticular load. To reduce water and energy usage, state-of-the-art flagging follow-up visits. As a result, our sales team members automated systems accurately control water levels and tempera- can manage their time, their activities and their territories in a tures for maximum efficiency. UniFirst personnel monitor each more controlled, strategic manner, increasing their overall step of the laundering cycle, from start to finish, ensuring overall appointment and sales efficiencies. Since being introduced on a efficiencies in use of energy, water, wash chemicals and more. corporate-wide basis, the SFA Program has helped to increase As a result of the LaundryESP Program, the following sales productivity by more than 13 percent. benchmark measurements were achieved: A 12.5 percent A current technology focus: We’re looking into the reduction in water use, an 11.8 percent reduction in energy use possibility of outfitting all our route sales representatives with and a 40 percent reduction in pollutants discharged. handheld computers that will help to precisely monitor and A challenge we are facing: The skyrocketing costs of fuel maintain accurate inventories for all garments being picked-up and energy. To combat those ever-increasing costs, we stress and delivered to customer sites. Each piece of customer apparel energy conservation measures throughout all of our facilities. or floorcare product would be scanned into the handheld More than 95 percent of our laundry production facilities computer by our customer representatives, and fed into a feature computerized processing equipment to help ensure that custom inventory system for analysis and tracking purposes. our operations are not wasteful in any way with respect to fuel The system would provide instant and accurate information on and energy usage. With nearly 200 locations throughout North uniform usage and processing activities, guarantee America, we find that seemingly small conservation measures, accountability to customers and ensure accurate billing. such as installing energy efficient equipment and automated How the growing focus on sustainability has changed our systems, can cumulatively produce significant savings. business: UniFirst has recognized for quite some time the need We also ensure that each of our 2,000 fleet vehicles, used for to increase its focus on sustainability and become a “greener,” customer delivery and support, follows proper maintenance more environmentally friendly company. Since 1997, for schedules and that all of our drivers are properly trained to example, UniFirst has participated in a “greening” program with follow “best practices” for vehicle fuel performance. others in our industry called the Laundry Environment

Stacey Kusterbeck is an Apparel contributing author based in . Editor in chief Jordan K. Speer also contributed to this report.

22 JULY 2008 • www.apparelmag.com