A Featured Company
Auri, Inc.
(OTCBB: AURI)
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Company Overview
Auri designs, crafts and markets fashion footwear for men and women, fusing performance engineering, innovative designs and advanced technical materials to provide a new level of luxury in fashion footwear. Crafted with Italian leathers and hand finished details, the products incorporate a seamless fusion of next level technologies with pure style delivering a unique experience of a no compromise style.
Product Technology
Advanced technologies include active suspension systems, compression control, Outlast® temperature regulating linings, Liquicell® ultra-thin liquid-filled interface technology, and encapsulated gel technologies.
Men
Auri fashion footwear combines groundbreaking performance engineering from the latest in material and design innovations. This new level of technology is fused seamlessly into classic and contemporary styles that bend old world craftsmanship, hand stitched details and hand burnished leathers.
Butter-soft interiors, backed by active suspension systems. Temperature regulating linings by Outlast keep feet at just the right temperature all day long. Multi-density structural footbeds provide support and insulation from the harsh pavement beneath.
This Laguna Beach – based design lab leverages engineering protocols & material innovations previously unheard of within the footwear industry. Auri represent what’s next in fashionable footwear for men.
Outlast
Outlast is a revolutionary material originally created fro NASA and used in space suits today. It delivers a level of comfort unavailable in any other fashion footwear brand. Laboratory tests show a reduction in skin temperatures and in sweet production inside their shoes.
Footbed
The footbed holds your foot snug, like a bucket seat in a performance sedan. Anatomically formed, they’re firm and supportive, yet soft and comfortable.
The active suspension actuates beneath, which helps maintain your foot’s shape and integrity, and provides optimal control and performance.
Women
Auri brings new technologies, materials and design to couture footwear.
The interiors and structures are wholly engineered from the outside in, leaving the shapes and silhouettes fashionable, inspired and beautiful.
Starting with the foundation of the sleek and fashionable silhouette and leaving absolutely no room for compromise, the style sets the parameters for the engineering work to begin.
The challenge with high heels (or any level of elevated heels ), is that a heeled shoe forces the foot into a position that transfers a woman’s body weight down and forward, concentrating it onto the forefoot. Weight transfer mitigation, therefore is objective, followed by a properly formed and supportive arch system, a larger contract patch for the heel to rest within and impact absorption at all points of pressure.
The solution come in many styles shapes and colors, all with the same design philosophy…
Corporate Brand Video
Articles
Forbes Magazine Names Auri Footwear One of “Americas Most Promising Companies”
LAGUNA BEACH, Calif., Sept. 21, 2009 (GLOBE NEWSWIRE) — Auri Footwear, the fashionable footwear brand launched out of the Southern California style scene in 2008, has been chosen by Forbes Magazine as one of the 20 most promising companies in America. The only brand selected from the entire roster of fashion, footwear and apparel industries. Auri Footwear grabbed 8th position overall, beating out fierce competition from a diverse set of industries, including high-tech, biotech and software. READ MORE
Start-up Searches for Red Carpet Treatment
The Washington Post – Small Business on washingtonpost.com By Sharon McLoone
My brother-in-law is a not-yet-famous actor but makes a decent living and is very well connected among the Hollywood set.
This often turns out to be a perk for his extended family, including myself. He goes to many glamorous parties where he leaves with many fabulous stories and gift bags loaded with designer swag that he often passes on to us.
He called me the day after the Oscars to tell me what he’d been up to. Here’s a small highlight of our conversation: “The Elton John after-party was a blast. Elton is so nice and just like a regular guy, and dancing with Sharon Stone and Ellen DeGeneres was so fun! They look amazing! I just got signed up to do voice overs with David Duchovny. What’s going on with you?”
Little did I know that our conversation would lead to the story of how one small business is banking its marketing strategy on getting celebrities to wear its gear.
One of the goodies in the 1,500 highly-coveted glittery doggy-bags at the Screen Actors Guild Awards that my brother-in-law received was a certificate from a start-up that said it sold fashionable and comfortable men’s shoes. READ MORE
With stars on its side, charity is sure to be a Globes winner
USA Today – By Cindy Clark
Awards shows and lavish gifts go hand in hand, but this year, the Golden Globes is doing its best to give back.
The Hollywood Foreign Press Association, the outfit that puts on the Golden Globes each year, has teamed up with Stars for a Cause, a non-profit that operates during awards season. While members of the HFPA are known for being wined and dined, they’re now using their celebrity connections to boost charity coffers beyond their own philanthropic efforts.
SPIELBERG SALUTE: Stars honor director who’ll be honored at Golden Globes
“We try to use all of this positive celebrity time associated with the awards shows — where you get the cream of the crop — and harness that star power to raise money,” says George Braunstein, president of Stars for a Cause.
At Sunday’s ceremony, stars will autograph limited-edition posters and a 12-liter “Balthazar” bottle of Moët & Chandon Champagne at designated locations, including the Entertainment Tonight tent. In addition, celebrities including William Shatner, Ludacris and Jesse McCartney have designed custom shoes for Auri Footwear and baubles for Robyn Rhodes Jewelry. The items later will be up for bid via Bonhams & Butterfields Auctioneers. READ MORE
Recent Developments
July 27 – AURI announced its full fall 2011 collection, including 25 men’s and 23 women’s styles, respectively. The fall 2011 products will be available starting in August at approximately 120 retail locations including Fred Segal, Rubenstein Brothers, The Tannery, and Gary’s.
July 18 – AURI announced that the Company has delivered its first shipment into Qatar. Auri’s fall 2011 men’s sport & fashion footwear will be sold through Fifty One East (”51 East”), a division of Darwish Holdings, the premier luxury retailer in Qatar. This represents the Company’s first sale into this marketplace and signifies an important milestone of entering the fray of luxury brands in the Middle East and an expansion into the region.
June 1 – AURI announced they would be the featured footwear on the May 29th cover of Parade Magazine featuring the cast of Men of a Certain Age. “Being selected as the featured footwear for this cover shoot is an honor. Men of all ages want to look good and feel good and that’s exactly what the Auri Footwear men’s collection provides,” stated Auri CEO, Ori Rosenbaum. “Auri stands apart from the usual players within the fashion footwear industry because we present this level of style with the added benefit of luxury. Our handcrafted leather products actually feel as good as they look. We’ve raised the bar and are changing people’s perception of what luxury footwear really means. We are thrilled that the stylists for such a legacy magazine as Parade Magazine recognized this.”
May 19 - AURI announced that the Company named Martina Brown, Denver west-sales executive representative, women’s majors & independents. At Auri, Brown will be responsible for territory sales and service for the Western United States. Brown joins Auri with over 18 years experience in the retail and footwear industry. Prior to joining Auri, Brown held positions such as senior account executive with several footwear companies including Kenneth Cole New York, Two Lips Footwear, Tsubo Footwear, Restricted Footwear, Barbara Nogg, Topline Corporation and many more. As west coast territory manager with Kenneth Cole Productions, Brown was responsible for sales of women’s Kenneth Cole New York and Reaction footwear lines to major accounts and specialty retailers. Accounts included Nordstorm, Macys West, Bon Marche, Dillards and Robinsons May. In this position, Brown increased territory sales volume by 350 percent.
Recent AURI News:
August 17 - Auri Announces Second Quarter 2011 Results
Auri, Inc. (OTC.BB: AURI.OB – News) announced today financial results for the three and six months ended June 30, 2011.
Second Quarter 2011 Highlights:
• Women’s footwear generated $61,452 in sales in the second quarter with Men’s footwear generating $108,335 in sales for the same period.
• Added 29 new retail distribution points in the 2nd quarter; 148 total retail locations at June 30, 2011
Three Months Ended June 30, 2011
Auri designs and markets branded contemporary footwear for men and women in several unique styles. Auri’s men’s line consists of both causal/sport shoes and fashion/dress shoes and an array of sandals, while its new women’s line, which debuted in February 2011, consists of an assortment of high-heel designs and flats. The Company’s fall 2011 women’s line will also include boots, wedges and platforms.
“With respect to both our men’s and women’s lines, our design platform fuses high fashion with proprietary technologies to create shoes that present true luxury with unparalleled performance and uncompromised style,” stated Ori Rosenbaum, CEO and Chairman of Auri. “Our design team has created shoes with active suspension systems, which incorporate compression control and anti-fatigue features complemented by removable foot beds. By integrating Outlast® temperature regulating linings, Liquicell® ultra-thin interface technology, and encapsulated gel technologies, we are able to provide form and function unlike other brands. To this end, our innovative design philosophy and solid business fundamentals earned Auri the #8 spot on Forbes Magazine’s 2009 ‘America’s Most Promising Companies’ list and we were the only footwear, fashion or apparel brand to make the list.”
Revenues
Revenues for the three months ended June 30, 2011 were $169,787, 23% lower than the $221,380 for the three months ended June 30, 2010. The primary cause of the year-over-year decline, which occurred in both the women’s and men’s collections, was that the Company shipped the majority of its spring merchandise to retailers in the first quarter vs. the previous year spring sales coming in the second quarter.
Cost of Sales
Cost of sales for the three months ended June 30, 2011 increased to $169,975 from $154,180 a year ago. Gross margin decreased to 0% in the three months ended June 30, 2011 from 30% in the comparable period a year ago.
Operating Expenses
Selling, general and administrative expenses were $488,628 in the second quarter of 2011 compared to $194,108 in the same period a year ago. Auri incurred $201,273 of public company expenses, including $122,500 of non-cash stock-based compensation expense, which was not present in the year-ago period. Excluding these costs, adjusted operating expenses increased approximately 48% to $287,355.
Loss from operations was $483,816 in the second quarter of 2011 compared to $126,908 in the same period in 2010.
Net Income (Loss)
Net loss for the three months ended June 30, 2011 was $508,391 compared to a $130,536 loss for the three months ended June 30, 2010. The diluted loss per share was $0.01 based on 88.7 million weighted average shares outstanding in the second quarter of 2011 compared to $0.00 and 53.5 million shares in the same period a year ago, respectively.
The Company sold 1,190,000 units in a private placement during the six months ended June 30, 2011. Each unit consists of one share of common stock and one warrant to purchase one share of common stock at $1.00 per share. The warrants are exercisable for a period of two years.
Six months Ended June 30, 2011
Revenues
Revenues for the six months ended June 30, 2011 increased 31% to $473,824 from the year ago period. Sales of women’s footwear increased approximately 112% to $234,306 and benefited from the Company’s launch of its women’s line in February 2011 into 58 department stores and boutique doors.
Cost of Sales
Cost of sales for the six months ended June 30, 2011 was $383,029 versus $251,750 last year. Gross profit was $90,795 in the first half of 2011 versus $108,949 in the first half of 2010, with associated gross margins of 19% and 30%, respectively.
Operating Expenses
Selling, general and administrative expenses increased from $442,792 to $881,273 due primarily to additional legal fees, addition of sales personnel and increased marketing/trade show attendance. In addition, the Company spent approximately $201,273 in public company expenses during the first six months of 2011, which were not present in the comparable period a year ago. Operating loss was $790,478 compared to $333,843 in the first half of 2010.
Net Income (Loss)
Net loss for first six months of 2011 was $837,723 as compared to a loss of $337,594 during the six months ended June 30, 2010. The diluted net loss per share was $0.01 based on 79.7 million weighted average shares outstanding.
Liquidity and Capital Resources
As of June 30, 2011, the Company had $233,060 of cash and cash equivalents and $133,333 of long term debt outstanding. Working capital was $537,946 at June 30, 2011 compared to $240,325 at December 31, 2010. The Company received $0.6 million in net proceeds from various private placements in the six months ended June 30, 2011. Based on current projected working capital needs for the next twelve months, the Company needs to raise additional capital to meet its operating goals.
Business Updates
On July 18th, 2011, Auri announced its entry into the Middle East with an initial shipment to Fifty One East (”51 East”), a luxury retailer located in Qatar. Auri’s fall 2011 men’s sport and fashion footwear will be sold through 51 East’s retail locations. Auri currently has made its first shipment to 51 East with additional orders scheduled for September delivery.
During the first two quarters the brand has added 52 new doors of distribution with prominent department and premium boutique stores domestically and internationally. Additionally, many of these doors are expected to provide vertical growth and door count for the fall 2011 collection.
Spring business has generated successful growth and brand awareness with positive sell throughs in the women’s collection generating reorder activity and increased interest for fall.
Fall 2011 launch — Auri’s men’s and women’s fall collections will be delivered on September 9th at approximately 150 retail locations including Fred Segal, Rubenstein Brothers, The Tannery, and Gary’s Newport Beach and Del Mar.
Auri’s women’s fall collection incorporates 10 patterns in 32 SKU’s. Retail prices range from $145-$295. The men’s collection features a diverse lineup of casual, dress, and sportswear oriented footwear. The offering consists of 9 patterns in 24 SKU’s. Retail prices for the men’s line range from $150-$285.
We believe the combination of great styles and unmatched comfort will expand our sales and brand in this large and growing market. A new marketing campaign and appearances at 7 trade shows this fall are expected to produce additional positive momentum in the 4th quarter carrying over in to 2012.
Auri, Inc.
1200 N. Coast Hwy
Laguna Beach, CA 92651
Phone: 949-793-4045
Website: http://www.aurifootwear.com/
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