Gordon and Smith aims to update their brand from a historic provider of surf, skate, and snow products to embody an upscale California lifestyle through fashionable clothing and accessories. They see an opportunity to launch a premium apparel line building on their well-known brand from the 1960s-1990s to capture an underserved market for high-end California lifestyle wear. The brand will target aspirational consumers through two labels - a broader red label and higher-end black label collection.

1. Gordon
and
Smith
Lifestyle
Brand
To
update
Gordon
and
Smith
from
a
historic
surf,
skateboard
and
snowboard
provider
to
a
brand
known
for
a
California
lifestyle
with
upscale
clothing
and
accessories
mirroring
our
individuality
and
showing
our
inner
rebel
by
providing
aspira?onal
fashion
and
accessories.

2. The
Missing
Brand…

3. What
is
‘California
Lifestyle’
California
is
abundant
with
larger-­‐than-­‐life
characters
• California
is
known
for
a
laid
back,
casual,
but
and
none
of
them
are
followers.
From
the
media
and
sophis?cated
style.
entertainment
industry
to
Silicon
Valley
these
non-­‐ • California
has
many
cultures
from
the
Rocky
conforming
entrepreneurs
are
the
leaders
we
aspire
Mountains
to
the
Sandy
Beaches
to
the
hot
to
emulate.
Their
Fashion
is
typical
of
their
life
as
you
deserts,
but
is
s?ll
seen,
interna?onally
as
the
will
find
these
people
in
the
Board
Room
trading
state
of
beach
lifestyle.
tradi?onal
suits
and
?es
for
their
favorite
hoodie.
• Laid-­‐back
and
comfortable
clothes
are
valued
Their
blatant
disregard
for
tradi?onal
is
a
statement
here,
even
for
business
to
dinner
even
church
to
who
they
are
as
a
person
-­‐
fiercely
independent
services
and
weddings.
and
striving
to
be
comfortable
in
their
own
skin.
East
• The
California
Lifestyle
is
aspira?onal
and
trendy
Coast
preppy
meet
your
west
coast
rival
-­‐
A
forceful
type
"A"
personality
driven
to
perfec?on
but
outwardly
wan?ng
to
show
how
relaxed
they
feel.
Their
good
fortune
has
given
them
the
ability
to
dress
in
very
upscale,
couture
clothing.
We
admire
them
as
rugged
individualists
and
their
clothing
tells
their
story
of
non-­‐conformity.
They
sit
in
the
Board
Room
in
jeans
and
a
sport
jacket.
They
go
out
to
dinner
dressed
in
couture
casual
clothes.

4. What
does
Upscale
California
look
like?

5. An
Underserved
Market
• Surveying
merchants
(buyers)
from
the
top
retailers,
everyone
one
of
them
stated
that
there
was
a
gap
in
the
market
for
an
upscale
California
brand…
all
expressed
an
interest
in
seeing
the
line
as
soon
as
possible.
• Closest
Compe??on
– Tommy
Bahama
($725M
in
revenue)
offers
tropical
prints
in
silk
fabric.
– Polo
Ralph
Lauren
is
east
coast
preppy.
– Tommy
Hilfiger
($5.6B
in
revenue
worldwide)
is
the
“classic
American
cool”
and
“Preppy
with
a
twist”.
– American
Apparel
sells
basics
($533m
in
revenues).
– Abercrombie
&
Fitch
($3.5B
in
revenue)
is
rooted
in
the
great
outdoors
and
East
Coast
Ivy
League
geared
for
18
to
25
ages.
Hollister
targets
14
to
18
year
olds
focusing
on
the
surfing
lifestyle.

6. The
Missing
Brand…

7. High
Quality
/
Fashion
The
Compe??ve
Ermenegildo
Landscape
Zenga
Ralph
Lauren
Giorgio
Armani
Donna
Karan
Hugo
Boss
Calvin
Klein
Gordon
and
Smith
Tommy
Hilfiger
DKNY
Michael
Kors
Nau?ca
Tommy
Bahama
Liz
Claiborne
Lacoste
IZOD
Jones
NY
Low
Price
Van
Heusen
Polo
High
Price
Abercrombie
&
Fitch
Hollister
Polo
Rugby
American
Eagle
J
Crew
Ouhiiers
Guess
American
Apparel
Low
Quality
/
Fashion

8. Steeped
in
tradi?on
&
past
?mes
of
the
California
lifestyle,
we
have
the
unique
opportunity
of
renewing
and
launching
an
apparel
line
based
upon
a
well-­‐known
brand
that
had
global
acclaim
during
the
late
1960’s
–
1990’s,
and
is
s?ll
widely
known
today.
ü Demand
for
high
end
clothing
is
increasing
post
recession
ü Low
compe??on
barrier
from
exis?ng
Brands
–
low
retail
switching
cost
ü Low
start-­‐up
costs
–
inventory
and
EDI
inventory
capability
ü Mul?-­‐channel
approach
to
retailing
ü Underserved
market

9. Our
red
label
is
targeted
to
a
broader
audience
and
will
be
the
prime
mainstay
of
our
product
line,
while
s?ll
maintaining
the
edge
in
providing
?meless
fashion
with
high
quality
in
all
of
our
products.
The
Black
label
represents
the
premium
collec?on
of
our
California
lifestyle
apparel
and
the
aspira?ons
of
our
brand
iden?ty.
Few
companies
have
been
able
to
establish
a
long
las?ng
California
lifestyle
brand
that
encompasses
surfing,
skateboarding,
and
snowboarding
as
Gordon
and
Smith
has.
Established
in
1959,
Gordon
and
Smith
innovated
foam
core
surtoard
construc?on
and
opened
its
first
surf
shop
in
Pacific
Beach,
CA.
Gordon
and
Smith
later
popularized
the
first
screen
printed
surf
t-­‐shirts.
In
1964,
Gordon
and
Smith
entered
the
skateboard
world
with
FibreFlex,
making
a
massive
contribu?on
to
the
industry
and
crea?ng
the
#1
best
selling
skateboard
of
all
?me,
world-­‐wide.
In
1987,
Gordon
and
Smith
began
making
and
selling
snowboards,
and
is
s?ll
known
today
as
a
premium
hi-­‐quality
brand.
In
2014,
our
plans
are
to
launch
an
apparel
line
that
complements
this
world-­‐wide
brand
that
eschews
the
ac?ve
California
Lifestyle.

10. The
Gordon
and
Smith
Brand
is....
…
the
California
Lifestyle
clothing
brand
for
men
and
women
25
to
40.
We
create
the
clothing
that
reflects
who
they
really
are.
For
the
Gordon
Smith
“Guy”
and
“Gal”
the
sun
always
sets
over
the
ocean
in
the
west….just
like
it
always
has
in
California.
Grab
some
California,
grab
some
Gordon
Smith.
Our
Vision
-­‐
A
world
in
which
the
California
Lifestyle
and
sensibili?es
are
available
to
all.
Our
Mission
-­‐
Empowering
discerning
men/women
to
embrace
the
California
Lifestyle
in
their
ac?ons,
personal
preferences
and
personal
clothing
style.
Our
Business
Statement
-­‐
We
are
in
the
business
of
providing
clothing
designs
and
products
for
men
and
women,
embodying
the
best
of
the
California
Lifestyle
and
making
it
available
to
discerning
men/women……
empowering
them
to
choose
the
Gordon
Smith
brand.

11. Our
Target
Customer
• Market:
Global
• Lifestyle:
Gordon
&
Smith
is
focused
on
the
25
to
40
person
that
are
ac?ve,
energe?c
and
fit.
• Personality:
Gordon
&
Smith
has
defined
its
brand
for
a
person
that
is
educated,
family
oriented,
with
a
rela?vely
ac?ve
lifestyle
and
fine
living.
• Wants:
Pres?ge,
glamour,
luxury
• Values:
Quality,
exclusivity,
style,
fine
living
• Aspires
to
be:
Respected,
admired,
wealthy
and
worldly,
and
sophis?cated

12. 2012
Apparel
Market
Size
• USA
ready
to
wear
/
couture
apparel
sales
topped
$500B.
Globally,
apparel
revenues
top
$1080B
• In
a
highly
compe??ve
and
diverse
market
there
is
no
leader
-­‐
The
largest
brands
report
revenues
in
the
range
of
$3B
-­‐
$6B,
Polo
Ralph
Lauren,
Liz
Claiborne,
Jones
Apparel
Group,
Tommy
Hilfiger
• Levi
reported
sales
of
$4b
through
it’s
red
tab
(premium)
line,
Dockers
and
signature
(basics)
collec?on
• High-­‐end
luxury
brands
are
the
first
in
2012
to
report
soaring
profits
–
Polo
Ralph
Lauren
with
$3.3B
and
LVMH
at
$8.7B
of
revenue

13. 2012
Retailers
• Apparel
is
sold
in
a
mul?-­‐channel
environment
mainly
through
retail
stores
and
online
channels.
• Nordstrom
sells
through
117
stores,
facebook,
twiier,
an
online
website
and
has
commiied
$140m
in
capital
improvements
for
internet
sales
in
2012.
• Saks
Fixh
Avenue
has
45
stores,
Neiman
Marcus
has
41
stores,
Bloomingdales
has
36
stores.
All
have
substan?al
internet
presence
and
some
feature
a
catalog
as
well.
• Most
large
retailers
are
pouring
capital
into
internet
expansion
to
see
what
channels
drive
traffic
–
pinterest,
foursquare.
• We
have
not
found
any
Retail
private
label
serving
the
California
upscale
lifestyle.

14. Gordon
and
Smith
Marke?ng
Strategy
• Retail
Stores
–
through
our
management
team,
we
have
numerous
rela?onships
with
mainstream
retail
stores
and
upscale
bou?ques
that
specifically
cater
to
our
target
market,
which
we
will
aggressively,
yet
selec?vely
establish.
• E-­‐Commerce/Online
Sales
–
Online
requires
brand
recogni?on
and
we
will
be
offering
apparel
on
the
Gordon
and
Smith
website.
Ini?al
sales
will
be
from
organic
and
paid
search.
Our
team
has
deep
exper?se
in
crea?ng,
managing
and
marke?ng
online
apparel
ventures
with
mul?ple
successes
to
reference.
• MulE-­‐Channel
–
through
selec?ve
list
management
we
intend
to
produce
a
clean,
simple
and
targeted
approach
thru
catalog,
affiliates,
web
adver?sing,
SEO,
f-­‐commerce,
m-­‐commerce
etc.
that
presents
our
apparel
in
a
highly
targeted
manner.
We
expect
this
will
further
enhance
sales,
will
help
to
drive
in-­‐store
and
online
traffic
to
our
apparel,
and
help
to
create
broader
recogni?on
of
our
California
lifestyle
designs
and
the
Gordon
and
Smith
brand
name.

15. Gordon
and
Smith
Target
Retailers
The
stores
we
want
to
sell
through
will
be
the
premier
luxury
retailer
recognized
for
merchandise
leadership
and
superior
customer
service.
They
will
offer
the
finest
fashion
and
quality
products
in
an
excep?onal
environment.
• Bloomingdales
• Barneys
New
York
• Saks
Fixh
Avenue
• Nordstrom
ü Nordstrom
carries
389
brands
• Neiman
Marcus
• Upscale
Contemporary
Bou?ques
– Fred
Segal
ü Amazon
announced
a
new
upscale
apparel
• Amazon
offering
channel
in
2012

16. Financial
Summary
Break
even
in
Q5
2013
and
2014
ProjecEons
by
Quarter
(July
2014)
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
Revenue
$3,000,000
Expenses
$2,000,000
Profit
(Loss)
$1,000,000
$0
-­‐$1,000,000
Q1
Q2
Q3
Q4
Q5
Q6
-­‐$2,000,000
Opera?ng
profits
will
be
re-­‐invested
Annual
ProjecEons
to
accelerate
$70,000,000
growth
$60,000,000
$50,000,000
$40,000,000
Revenue
$30,000,000
Expenses
$20,000,000
Profit
(Loss)
$10,000,000
$0
2013
2014
2015
2016
2017
-­‐$10,000,000

17. Financing
Considera?ons
$5,000,000
Growth
Equity
Financing:
– Series
A
Preferred
(target
structure,
however
flexible
to
others
i.e.
conver?ble
debt)
– Includes
outright
ownership
of
the
Gordon
and
Smith
Brand
– Enables
design,
produc?on
and
launching
of
our
Spring
2014
line
by
the
end
of
calendar
2013
online
through
out
e-­‐commerce
website.
– Ini?al
minimum
closing
targeted
by
July
30,
2013.
Use
of
Proceeds
– $
200,000
Designs,
paierns,
and
prints
– $
500,000
Brand
acquisi?ons
– $
200,000
Website
and
e-­‐Commerce
systems
integra?on
– $1,400,000
inventory
produc?on
– $
350,000
Working
capital
– $
200,000
Marke?ng
&
adver?sing
set
up
– $
400,000
Marke?ng
and
adver?sing
expense
– $
150,000
Legal,
accoun?ng,
closing
costs,
misc
– $
400,000
SG&A
– $1,200,000
Cushion
due
to
cash
burn
?ming
Exit
Strategy:
– The
Company
is
an
airac?ve
plahorm
to
add
complementary
brands
and
product
lines
to
its
exis?ng
brands
and
planned
distribu?on
channels.
The
Company
will
be
ripe
for
acquisi?on
by
another
fashion
brand
on
favorable
terms
within
the
next
36
–
48
months.

18. Summary
• Historically
the
Apparel
retail
segment
has
been
viewed
as
one
with
low
barriers
to
entry.
• Online
Apparel
Sales
is
a
large
&
growing
marke?ng
opportunity
and
is
currently
the
fastest
growing
product
segment.
• Purchasing
habits
of
the
broader
public
are
increasingly
moving
towards
quality
premium
brands.
• Differen?ated
target
market
is
the
California
Lifestyle,
while
prominent
in
the
hearts,
minds
and
souls
of
millions
world
wide,
has
not
been
pursued
in
the
apparel
industry.
• The
Gordon
and
Smith
brand
name
has
been
established
for
over
50
years.
We
believe
building
on
this
Brand
to
establish
an
apparel
line
is
a
natural
extension
of
posi?oning
for
Mature
Adults
(25-­‐40)
with
strong
demographics.
• Our
management
team
is
well
experienced
and
has
built
brands
from
the
ground
up,
and
has
grown
mul?ple
companies
represen?ng
$100
millions
in
retail
sales.

19. Management
Team
Greg
Walker
Gary
Kazmer
Mr.
Walker
has
over
20
years
as
a
senior
execu?ve
with
a
Mr.
Kazmer
has
30
years
of
apparel,
sox
goods
and
hard
strong
record
of
building
and
running
rapid
growth,
profitable
goods
experience
in
a
variety
of
opera?onal
roles
with
the
last
business.
In
1991,
he
founded
and
led
a
successful
digital
16
at
the
execu?ve
level.
He
has
9
years
experience
with
communica?ons
company
that
brought
significant
recogni?on
Redcats
USA
(Internet
Retailer
#31
and
the
#3
catalog
for
innova?ve
contribu?ons
to
the
advancement
of
company
worldwide).
At
Redcats
he
managed
the
lifestyle
anima?on,
photographic,
and
special
effects
technology
and
division
of
Redcats
USA,
which
had
a
$250
Million
revenue
techniques.
Later
went
on
to
specialize
in
organiza?onal
stream
from
three
brands,
designed
a
new
e-­‐commerce
turnarounds,
star?ng
with
an
underperforming
DOD
plahorm
and
website
which
increased
e-­‐commerce
sales
by
contractor
as
President
increased
sales
to
over
$20M,
and
50%
and
managed
the
customer
contact
and
up
sell
program,
then
became
Chief
Opera?ng
Officer
for
a
start-­‐up
fashion
across
all
Redcats
business
units,
to
create
an
addi?onal
business
which
grew
to
over
$36M
in
4
years.
He
is
a
revenue
stream
of
$135MM.
Before
that,
Gary
managed
respected
leader,
mindfully
commiied
to
assuring
common
opera?ons
for
QVC
as
the
company
grew
from
$250
Million
to
culture
and
shared
agenda,
strengthened
partnership
and
$1.4
Billion
and
he
managed
the
P/L
for
all
the
opera?ons
of
leadership.
Visionary
thinker
recognized
for
leading,
execu?ng
Shop
NBC
as
their
Vice
President
of
Opera?ons
as
they
grew
and
delivering.
Business
strategist
known
for
developing
from
$30
million
to
$300
million.
innova?ve
solu?ons
and
driving
growth.
Consensus
builder,
Most
recently,
as
President
of
Partsearch
Technologies
he
change
agent.
Commiied
to
airac?ng,
developing,
coaching
oversaw
a
30%
lix
in
Revenues
combined
with
a
600
basis
and
retaining
human
capital
and
building
high
performing,
point
lix
in
Net
Income.
dynamic,
diverse
teams.
Gary
aiended
Penn
State,
where
he
served
as
the
President
of
the
Student
Government
Associa?on.
In
addi?on,
Gary
currently
sits
on
two
Advisory
Boards
for
growing
ecommerce
companies.

20. Advisory
Board
Stephen
Ludwig
Peter
Shen
(Strategist/CreaEve
Director/President
at
Group
22
Inc.)
(President
and
CEO
at
PhaSHEN)
Stephen
has
over
20
years
of
experience
in
visual
Peter
has
over
20
years
of
experience
in
the
fashion
industry.
communica?ons,
marke?ng
strategy
and
interac?ve/interface
With
a
degree
from
California
State
University,
Long
Beach,
in
development.
He
has
worked
with
small
start-­‐ups
and
Tex?les
and
Fashion
Design
–
his
accomplishments
included
na?onal
clients
in
the
automo?ve
industry,
toy
companies,
working
for
major
retailers
–
GAP,
Express,
NINE
WEST,
ac?on
sports,
financial
networks
and
the
entertainment
Macy’s,
Nordstrom,
Dillard’s
and
ACA
JOE.
He
furthered
his
industry.
career
in
design
and
manufacturing
by
working
for
XOXO,
At
Cohen
&
Godefroy,
he
honed
his
design
sensi?vi?es,
HEART
and
SOUL,
HOT
KISS,
YANK,
SELE
and
KISS
IT.
For
the
gained
a
deep
understanding
of
marke?ng
working
with
past
three
years,
he
founded
KI
GLOBAL
FASHIONS
in
joint
talented
integrated
marke?ng
and
PR
specialists,
and
built
the
venture
with
factories
in
China
to
bring
fashion
directly
from
founda?on
of
a
philosophy
for
the
next
genera?on
of
the
factory.
Currently
is
founder
and
CEO
of
PhaSHEN
Inc.
marke?ng
communica?ons
firm.
In
1998,
he
co-­‐founded
with
headquarters
in
the
heart
of
Los
Angeles’s
fashion
Group
22.
Today,
G22
handles
overall
marke?ng
and
strategy
district,
PhaSHEN
Inc.
provides
superior
product
development
for
a
number
of
clients,
as
well
as
project-­‐based
work
consul?ng
service
for
major
manufacturers
and
retailers.
They
including
branding,
collateral,
enterprise-­‐level
websites,
assist
major
fashion
brands
in
supply
chain
management
public
rela?ons,
SEO,
video
produc?on,
web-­‐based
training,
while
closing
the
gap
between
the
crea?ve
headquarters
in
and
many
others.
Aside
from
being
named
one
of
the
top
10
the
USA
and
overseas
manufacturing.
Their
skills
include
most
dependable
web-­‐design
firms,
Group
22
has
also
won
crea?ve
as
well
as
technical
design,
domes?c
and
overseas
awards
for
interface
design
for
various
web-­‐based
training
sourcing,
and
sample
making
right
here
in
Los
Angeles
and
applica?ons,
print
awards
for
their
work
on
the
Acura
Facts
also
in
their
China
offices.
Guide
and
been
featured
in
many
trade
publica?ons
including
two
prin?ngs
of
Hot
California
Designers
and
several
Graphics
design
and
branding
books.