Industry News 1/7/2008

Sullen Clothing Increases Total Sales 110 Percent During 2007

Sullen Clothing Increases Total Sales 110 Percent During 2007

Art-Driven Lifestyle Apparel Brand Enters New Mall Majors and Key Core Shops; Expands Sales Team and Operations Staff; Expands Women’s Line

Sullen Clothing, an art-driven lifestyle apparel brand based in Orange County, Calif., today announced that the company posted a 110 percent increase in total sales during 2007. During this breakout year, Sullen also added new sales and operations staff, expanded its signature “SG” line (aka Sullen Girl/Sullen G.) and entered approximately 400 new retail locations throughout the U.S. and around the globe.

“2007 was an exciting year for Sullen,” said Jeremy Hanna, Sullen co-founder and director of marketing. “We hit every strategic goal we set for ourselves this year, and we are really looking forward to 2008 and introducing the new line at the Winter ASR in January. From mall majors to key independents, we expanded our market in a big way in 2007. For an emerging brand like Sullen, creating brand identity in an extremely competitive market is a huge accomplishment.”

Key operational highlights for Sullen during 2007 included:

• March 2007 -- Moved into new 3,000 sq ft Irvine warehouse with offices and art studio. In just six months, Sullen began looking for a larger warehouse space in Orange County to support continued growth. Move planned to double space in 2008.
• May 2007 -- Launched and branded new “SG” line. More focus on original pieces and looks for women.
• June 2007 -- Promotion of Ryan Moore to Internal Sales Representative of National/International accounts.
• August 2007 -- Sullen Co-Founder and Creative Director Ryan Smith curates first “Sullen Process Series” art show showcasing original artworks of the Fall 2007 collection.
• September 2007 -- Nearly 500 percent increase of orders year-over-year at Fall ASR 2007.
• November 2007 -- The addition of James Johnson to Sullen Sales Team. Brings experience and approximately $4 million a year in sales with previous brands.
• December 2007 -- Charting 110 percent increase in total sales year-over-year.
• January/December 2007 -- Added three full-time operations and fulfillment staff members to Sullen warehouse team.

Sullen’s market expansion highlights in 2007 included:

• Expanded relationship with pioneering chain Tilly’s, first major to add Sullen to its merchandise mix.
• Added No Fear, Pac Sun, Zumiez and d.e.m.o. stores to account base.
• Added key core shops including Identity Boardshop, Hot Cats of Las Vegas and Gromitz.
• Entered shops in Alabama, North and South Carolina, Pennsylvania, Idaho, Louisiana, Massachusetts, Minnesota, New Mexico, New York, Puerto Rico and Utah nationally.
• Entered shops in Europe (Spain, Italy, Germany), Japan, South America, South Africa internationally.

Known for its original art influenced by the tattoo, action sport, music and Southern California underground scene, Sullen has built its reputation on edgy graphics, quality garments and appealing designs.

“The quality and impact of our art is the primary emphasis at Sullen,” said Ryan Smith, Sullen co-founder and Creative Director. “We know it is the primary brand differentiator. As our creative process matures, you will see a continued effort on this front - new influences, greater variety, pieces geared distinctly to men’s or women’s lines. In 2008 we have some surprises in store, including collaborations with some of the tattoo world’s best talent and the addition of a new artist to our in-house staff.”

Sullen Clothing is also known for its steadfast support of today’s hottest bands, FMX and BMX riders, tattoo artists, skaters, surfers, MMA fighters, event promoters and charitable causes – the Sullen Family.

Sullen Family highlight achievements in 2007 included:

• Sullen-sponsored BMX rider T.J. Ellis ranked 9th overall in the 2007 AST Dew Tour in the BMX Dirt class.
• Sullen-sponsored Moto Racer Derek Costella was the winner of the Fuse Network’s ‘Crusty’s Dirt Demons’ season 1.
• Sullen-sponsored FMX Rider Jimmy Fitzpatrick was the winner of the Fuse Network’s ‘Crusty’s Dirt Demons’ season 2.
• Sullen-sponsored tattoo artist Nikko Hurtado won an episode of TLC’s new “Tattoo Wars” competition series decked out in Sullen Gear; and tattooed the infamous Kat Von Dee on TLC’s “L.A. Ink” wearing Sullen.
• Sullen-sponsored band LIFELINE took home top honors in So Cal’s “Mai Tai/98.7 Battle of the Bands” - earning a $20,000 studio budget, promos and crowd favorite bragging rights.