Sara Lee Corporation Highlights Intimates and Underwear Business At Prudential Securities Consumer Conference.Business Editors Prudential Securities Consumer Conference CHICAGO--(BUSINESS WIRE)--Sept. 3, 2003 Cary McMillan outlines business strategy and key opportunities to drive growth At the Prudential Securities "Back to School" Consumer Conference, Sara Lee
Sara Lee Corporation (NYSE: SLE) is a global consumer-goods company based in Downers Grove, Illinois, USA. Corporation today reviewed its $6 billion Intimates and Underwear line of business and highlighted several new product innovations. Sara Lee's Intimates and Underwear business includes intimate apparel, knit products and legwear marketed under some of the most powerful brand names in the apparel industry including Hanes, Just My Size, Champion, Playtex, DIM, Bali, barely there and Unno. Sara Lee holds leading share positions in these categories in both North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Cary D. McMillan, chief executive officer of Sara Lee Branded Apparel and executive vice president of Sara Lee Corporation, discussed the business strategy for the Intimates and Underwear business. In addition, he highlighted four key opportunities to generate long-term growth: driving value-added products, leveraging large brands, launching into new categories and expanding into new geographies. "Sara Lee's apparel business is committed to providing the best in value-added products and focusing on the largest, most valuable brands within our business portfolio," said McMillan. "We are beginning to launch into new categories that are well suited for our products and brands, such as introducing Hanes Her Way into the sleepwear/loungewear category, which is a large, unbranded category that's estimated to ring up $5 billion in annual sales. We also have an opportunity to focus on growth in geographies outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , where we currently don't compete and the demand for our type of products is growing." As reported in the company's fiscal 2003 earnings, operating segment income for Intimates and Underwear increased 28%, reflecting reshaping savings, reduced restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses and lower raw materials. McMillan stressed that profit gains were made, while investment in brands continued. In addition, the Intimates and Underwear business improved its product mix during a very challenging retail environment that resulted in a 1% decline in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year. For fiscal 2003, Intimates and Underwear marketing spending rose 16%, including a 37% increase in media advertising, the majority of which was focused on supporting the most important brands. For people who are interested in listening to the presentation, it can be found in the Investors section of the Sara Lee corporate Web site until Wednesday, Sept. 17, 2003. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains certain forward-looking statements concerning Sara Lee's expected future operations, expansion plans and economic performance. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Factors that could cause Sara Lee's actual results to differ materially from such forward-looking statements include: the impacts on reported earnings from fluctuations in foreign currency exchange rates - particularly the euro - given Sara Lee's significant concentration of business in Western Europe; significant competitive activity, including advertising, promotional and price competition, and changes in consumer demand for Sara Lee's products; and inherent risks in the marketplace associated with new product introductions, including uncertainties about trade and consumer acceptance. In addition, the corporation's results may also be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes, and laws and regulations in markets where the corporation competes. Consequently, the company wishes to caution readers not to place undue reliance on any forward-looking statements. We have provided additional information in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal 2002 and in our quarterly reports on Form 10-Q Form 10-Q See 10-Q. for fiscal 2003, which readers are encouraged to review, concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Sara Lee undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Company Description Sara Lee Corporation (www.saralee.com) is one of the world's leading branded consumer packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one companies, selling its products in nearly 200 countries. The company has three global businesses - Food and Beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , Intimates and Underwear, and Household Products - through which it manufactures and markets products of exceptional quality and value under leading, well-known brand names such as Sara Lee, Earth Grains, Jimmy Dean, Douwe Egberts Douwe Egberts (often abbreviated as DE) is a Dutch corporation that processes and trades coffee, tea, and other groceries. Its full name is Douwe Egberts Koninklijke Tabaksfabriek-Koffiebranderijen-Theehandel Naamloze Vennootschap , Chock full o' Nuts, Hanes, Playtex, Bali, DIM, Kiwi kiwi (kē`wē) or apteryx (ăp`tərĭks), common name for the smallest member of an order of primitive flightless birds related to the ostrich, the emu, and the cassowary. , Ambi Pur and Sanex. |
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