Vans, Inc. (NASDAQ: VANS) today announced financial results forthe third fiscal quarter and nine months ended February 26, 2000.

Net sales for the quarter increased 48.9% to $67.8 million,compared to $45.5 million for the third quarter of fiscal 1999. Netincome increased to $1.7 million versus net income of $635,000 in thesame period last year, and diluted earnings per share more thandoubled to $0.12 versus diluted earnings per share of $0.05 in thethird quarter of fiscal 1999. Net sales for the nine months increased32.7% to $207.7 million, compared to $156.6 million for thecorresponding nine months of fiscal 1999. Net income was $10.3million, versus net income of $7.9 million in the same period lastyear, and diluted earnings per share was $0.72 versus diluted earningsper share of $0.58 in the first nine months of fiscal 1999.

Gary H. Schoenfeld, Vans’ President and Chief Executive Officerstated, “We are extremely pleased with our nearly 50% increase insales and the more than doubling of earnings for the third quarter.These results demonstrate the continued strong growth of the VANSbrand, as well as our ability to leverage our infrastructure.”

Total U.S. sales, including sales through Vans’ U.S. retailstores, increased 35.0% in the third quarter to $44.2 million, versus$32.7 million for the same period a year ago. Total internationalsales, including sales through the Company’s five European retailstores, increased 84.3% to $23.6 million, versus $12.8 million for thesame period last year. U.S. wholesale sales in the third quarterincreased 42.4% to $23.5 million, versus $16.5 million a year ago.Overall sales through the Company’s 128-store retail chain (as ofFebruary 26, 2000) increased 28.6% to $21.5 million in the thirdquarter of fiscal 2000, from $16.7 million for the same period a yearago. Comparable store sales for the third quarter were up 5.7% versusthe same period last year, the twenty-first consecutive quarter ofsuch increase.

Commenting on the Company’s sales growth, Mr. Schoenfeld stated,”We are very encouraged by the strong performance of our U.S.wholesale business which was up more than 40% versus last year. Therobust growth in our international business, fueled predominantly bysales increases in France and Germany, along with earlier springdeliveries, underscores the increasing strength of the VANS brandworldwide, and our retail business remains strong, led by continuedsolid comp gains.”

The Company’s gross margin for the third quarter was even with theprior year at 40.7%. Operating expenses and other items as apercentage of sales improved 190 basis point to 36.8% for the thirdquarter, versus 38.7% for the same period a year ago.

Worldwide inventory at February 26, 2000, increased to $45.2million from $37.4 million at February 27, 1999 due to the significantgrowth in the Company’s international business. Inventory in the U.S.again decreased year-over-year, even with the addition of 22 storesduring the past year.

Mr. Schoenfeld concluded, “During a challenging period ofsignificant structural change in the footwear industry over the lastthree years, we have worked hard to build a strong platform on whichto grow our business into the future and create shareholder value. Wehave successfully developed proprietary properties such as the VANSTRIPLE CROWN SERIES(R) and the VANS skate parks, formed strategicpartnerships with a host of market leaders including Pacific Sunwear(NASDAQ: PSUN) and Sony PlayStation(R), and attracted some of the besttalent in the industry. We are on track for completing a very solidyear and with worldwide bookings for back-to-school up more than 20%,we look forward to maintaining substantial sales and earnings growthas we head into fiscal 2001.” (see Note below) Vans, Inc. is a leading branded lifestyle company for the youthmarket. Vans reaches its 10 to 24 year-old target consumers throughthe sponsorship of Core Sports,(TM) such as skateboarding,snowbrding, surfing and wakeboarding, and through majorentertainment events and venues, such as the VANS Triple Crown(TM)Series, the VANS Warped Tour,(TM) the VANS World Amateur SkateboardingChampionships, the world’s largest VANS skateparks, and the VANS HighCascade Snowboard Camp,(TM) located on Mt. Hood. The Company operates129 retail stores in the U.S. and Europe, and designs, markets anddistributes active-casual footwear, clothing and accessories,performance footwear for Core Sports, (TM) snowboard boots, step-insnowboard boot bindings, and outerwear worldwide. Vans’ Internetaddress is www.vans.com.

(Tables to Follow)

Note: These paragraphs contain forward-looking statements aboutthe Company’s sales and earnings for the fourth quarter of fiscal 2000and for fiscal 2001. Actual sales and earnings results for the Companymay vary significantly and could be impacted by a number of importantfactors, including but not limited to: (i) the ongoing consolidationof the retail segment of the footwear industry; (ii) the occurrence ofdownward trends in the U.S. economy, foreign economies and thefootwear industry, or the occurrence of events that adversely affectthe world economy in general; (iii) changes in the fashion preferencesof the Company’s target customers and the Company’s ability toanticipate and respond to such changes; (iv) increasing competition inall lines of the Company’s business from both large, well-establishedcompanies with significant financial resources and brand recognition,and smaller niche competitors who market exclusively to the Company’starget customers; (v) the cancellation of orders which could alterbookings numbers; (vi) the fluctuation of foreign currencies inrelation to the U.S. dollar; (vii) whether future skate parks openedby the Company will be as successful as the Company’s current parks;and (viii) whether the VANS Triple Crown stores prove to besuccessful. Many of these factors, and others, are discussed moreextensively in the Company’s Annual Report on Form 10-K for the yearended May 31, 1999, which is filed with the Securities and ExchangeCommission.

Vans, Inc.

Condensed Consolidated Financial Summary

Third Quarter and Nine Months Fiscal Year 1999 and 2000

(Dollars in thousands, except per share amounts)

Statements of Operations

Three Months Ended Nine Months Ended

Feb 26, Feb 27, Feb 26, Feb 27, 2000 1999 2000 1999

Net sales $ 67,757 $ 45,517 $ 207,730 $ 156,579Cost of goods 40,180 26,988 120,367 90,067

Gross profit 27,577 18,529 87,363 66,512Gross profit percentage 40.7% 40.7% 42.1% 42.5% Expenses:

Selling and distribution 16,990 11,969 46,692 33,163Marketing, advertising and promotion 5,050 5,187 16,252 16,099General and administrative 2,812 1,619 8,225 6,280Other expense

(income), net (a) (1,065) (1,591) (3,512) (3,156)Restructure cost (recoveries) — (393) — (393)Goodwill amortization 376 338 1,046 948Interest expense net 743 476 1,838 628

24,906 17,605 70,541 53,569

Expenses and other items as a percentage of sales 36.8% 38.7% 34.0% 34.2%

Earnings before income taxes 2,671 924 16,822 12,943Income tax expense 908 333 5,719 4,660Minority interest 51 (44) 789 377

Net earnings $ 1,712 $ 635 $ 10,314 $ 7,906

Earnings per share information:

Basic:Weighted average Shares outstanding 13,660 13,307 13,561 13,307Net earnings per basic share $ 0.13 $ 0.05 $ 0.76 $ 0.59

Diluted:Weighted average Shares outstanding 14,626 13,653 14,369 13,640Net earnings per diluted share $ 0.12 $ 0.05 $ 0.72 $ 0.58

Footnote:(a) Other income consists primarily of licensing royalties and

sublease income.

Vans, Inc.

Condensed Consolidated Financial Summary

Third Quarter and Nine Months Fiscal Year 1999 and 2000

(In thousands of dollars)

Balance Sheets Feb 26, Feb 27, 2000 1999

ASSETS:

Current assets:Cash $ 8,680 $ 5,193 Trade receivables 47,227 31,374Inventory 45,242 37,425Deferred income taxes 1,625 5,469Other 7,497 6,163

Total current assets 110,271 85,624 Property, plant and equipment – net 29,147 19,696Intangible assets 23,737 23,253Other 3,265 2,905

Total assets $166,420 $131,478

LIABILITIES:

Short-term borrowings $ 24,340 $ 12,546Current liabilities 18,412 11,827Restructure costs 208 1,465Other long-term liabilities 15,273 10,595

Total liabilities 58,233 36,433 Minority interest (a) 1,146 706Shareholders’ equity 107,041 94,339

Total liabilities and

shareholders’ equity $166,420 $131,478

Sales by Distribution Channel

Three Months Ended Nine Months Ended

Feb 26, Feb 27, Feb 26, Feb 27, 2000 1999 2000 1999

U.S.: Wholesale $ 23,484 $ 16,497 $ 81,878 $ 71,791

Retail 20,693 16,226 57,738 45,377

Total U.S. 44,177 32,723 139,616 117,168Total International 23,580 12,794 68,115 39,411

Total Sales $ 67,757 $ 45,517 $207,731 $156,579ghted average Shares outstanding 13,660 13,307 13,561 13,307Net earnings per basic share $ 0.13 $ 0.05 $ 0.76 $ 0.59

Diluted:Weighted average Shares outstanding 14,626 13,653 14,369 13,640Net earnings per diluted share $ 0.12 $ 0.05 $ 0.72 $ 0.58

Footnote:(a) Other income consists primarily of licensing royalties and

sublease income.

Vans, Inc.

Condensed Consolidated Financial Summary

Third Quarter and Nine Months Fiscal Year 1999 and 2000

(In thousands of dollars)

Balance Sheets Feb 26, Feb 27, 2000 1999

ASSETS:

Current assets:Cash $ 8,680 $ 5,193 Trade receivables 47,227 31,374Inventory 45,242 37,425Deferred income taxes 1,625 5,469Other 7,497 6,163

Total current assets 110,271 85,624 Property, plant and equipment – net 29,147 19,696Intangible assets 23,737 23,253Other 3,265 2,905

Total assets $166,420 $131,478

LIABILITIES:

Short-term borrowings $ 24,340 $ 12,546Current liabilities 18,412 11,827Restructure costs 208 1,465Other long-term liabilities 15,273 10,595

Total liabilities 58,233 36,433 Minority interest (a) 1,146 706Shareholders’ equity 107,041 94,339

Total liabilities and

shareholders’ equity $166,420 $131,478

Sales by Distribution Channel

Three Months Ended Nine Months Ended

Feb 26, Feb 27, Feb 26, Feb 27, 2000 1999 2000 1999

U.S.: Wholesale $ 23,484 $ 16,497 $ 81,878 $ 71,791

Retail 20,693 16,226 57,738 45,377

Total U.S. 44,177 32,723 139,616 117,168Total International 23,580 12,794 68,115 39,411

Total Sales $ 67,757 $ 45,517 $207,731 $156,579