AMDP Investment Proposal Draft

AMDP Investment Proposal - Vuori

TO: Clark Hansen, CEO
FROM: Sarah Park, Research & Development
DATE: March 5, 2024
SUBJECT: Vuori Investment Proposal

I. EXECUTIVE SUMMARY

This memo proposes that AMDP invests in Vuori, a revolutionary Activewear & Athleisure brand that has placed itself at the forefront of the athletic clothing market over the past few years. The brand is prominently known for its sustainable practices that articulate AMDP's core values of environmental sustainability, corporate social responsibility, and profitability. Offering Vuori an investment opportunity will be mutually beneficial to both parties, and it will be a worthwhile addition to AMDP's investment portfolio. 

II. AMDP GUIDELINES  

AMDP strives to invest in companies that are committed to operating business in a socially responsible, environmentally sustainable, and profitable manner. Below are the principal guidelines followed: 

Triple Bottom Line: A business concept that expands the traditional focus solely on financial performance (profit) to consider the social, environmental, and economic dimensions of an organization's impact. 

It is often referred to as the "three P's": 

• People: The social dimension and company's impact on its human stakeholders.
• Planet: The environmental dimension and the company's impact on the environment.
• Profit: The economic dimension and the company's financial performance.

Corporate Social Responsibility (CSR): A concept that encourages businesses to consider the impact of their operations on society and the environment, alongside their pursuit of profit. It goes beyond simply complying with laws and regulations, aiming to actively contribute to the well-being of stakeholders and the wider community, including philanthropy, diversity, equity, and inclusion (DEI) initiatives, and ethical sourcing.

Social Enterprise: A type of business that combines aspects of traditional businesses and non-profit organizations. They focus on specific social objectives to maximize their financial profits while prioritizing their contribution to society.

Carbon Footprint: A measure of the total amount of greenhouse gases (GHG) that are released into the atmosphere as a result of our activities. Companies that focus on addressing their carbon footprint may practice using sustainable energy and renewable energy sources.

III. COMPANY BACKGROUND 

Founded in 2015, Vuori is a relatively young American company that designs and sells premium performance apparel for men and women. Vuori primarily sells performance apparel for both men and women, with a strong focus on activewear suitable for a variety of activities like running, yoga, and training. Vuori's main competitors include other prominent athleisure brands like Lululemon, Gymshar, and Alo Yoga.

IV. FINANCIAL DATA 

Vuori is a profitable company with consistent revenue growth. Their recent $400 million investment from Softbank highlights their strong financial performance and future potential. While Vuori is not yet public, its expected IPO in mid-2024 could provide further insights into their financial details.

V. COMPANY CLAIMS 

Vuori publicly emphasizes its commitment to sustainability Below are some key practices the company has been demonstrating:

• Focus on sustainable materials: Using eco-friendly materials in their products, with approximately 55% of their fabric spend in 2022 being made with their "Vuori Impact Fibers" including recycled materials, organic cotton, and other sustainable options.

• Climate Neutral certified: Vuori is a Climate Neutral certified brand and measures their carbon footprint, offset 100% of their emissions through verified carbon reduction projects, and actively work to reduce their footprint further.

• Targeting emissions reduction: Vuori has set ambitious science-aligned targets to reduce their greenhouse gas emissions by 42% absolute and 48% per unit across their supply chain by 2030.

• Supporting circular economy: Vuori offers a take-back program for their clothing, aiming to reduce textile waste and promote a more circular economy by giving used clothing a second life.

VI. EXPERT OPINIONS 

Vuori has been widely known across the retail industry for its sustainability practices and its efforts to transcend limits for the greater goal of saving the planet. 

“We strive for transparency in our products, our processes and business practices. We seek to provide visibility into our supply chain and to run our business with strong ethics and data privacy standards. We also seek to take accountability for the environmental impact we have on this planet and communicate this to our community by sharing our vision, goals and progress—every step of the way.” (Danzieger, Forbes)

"It also focuses on using sustainable and recycled materials, reducing waste as much as possible, and implementing ethical manufacturing practices. The buzziest Vuori product I’ve seen is its performance jogger, made primarily from recycled polyester." (Cecil, BuzzFeed News)

VII. RECOMMENDATION 

Ultimately, I recommend that AMDP invests in the brand Vuori to further support its goal for sustainability and social responsibility. The company has been demonstrating consistent growth curve throughout the year, and the extra investment will expand the company in lengths, considering the long-list of potential they have been presenting. 

WORKS CITED

1. https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line 

2. https://www.investopedia.com/terms/c/corp-social-responsibility.asp 

3. https://www.nature.org/en-us/get-involved/how-to-help/carbon-footprint-calculator/

4. https://www.buzzfeednews.com/article/lorencecil1/eco-friendly-activewear

5. https://www.forbes.com/sites/pamdanziger/2024/02/25/vuori-the-athleisure-brand-valued-at-4-billion-is-halfway-to-opening-100-stores-by-2026/?sh=2b7f3d6a618d

6. https://vuoriclothing.com/pages/our-story 

Thank you,

Sarah Park