Insurance Brokers Told to Pay City Tax By JACQUELINE FOX Staff Reporter Health and life insurance brokers across the Valley and citywide are being put on notice that, contrary to widespread belief, they are not exempt from paying city business taxes, as are their counterparts in the industry who are classified as appointed insurance agents and exempt through state law. At issue is the definition between a broker and an appointed agent. From the city’s point of view, brokers are defined as those individuals who operate independently from insurance firms, selling packages of health and life insurance products they bundle together and collect a commission on, typically between 4 and 25 percent. Appointed agents, on the other hand, are considered to be individuals who work directly and exclusively for the insurance companies. Those companies, the city adds, are charged with paying business taxes, so their agents pay only what’s called an “in lieu” tax to the state. But brokers are considered to be operating as independently run businesses and must pay city business taxes, the city says. And many of them are finding themselves among the large number of individuals being tracked down through a program that allows the city to share tax information with the State Franchise Tax Board. The city’s office of finance has sent them letters notifying them that they have been identified as doing business in the city through the tax board partnership and are required to show proof that they are an appointed agent, or begin paying business taxes or face penalties. According to Bob Eustrom, chief of enforcement with the office of finance, the city is not systematically targeting insurance brokers, but rather they are among the roughly 200,000 business operators identified through the file-sharing program established under AB 63 two years ago. “We are really in the very early stages of pursuing brokers, as we are with all businesses that surface through the sharing of information with the state,” Eustrom said. According to Bruce Benton, president of the Los Angeles chapter of the Association of Health Underwriters and owner of Woodland Hills-based Smith Benton Insurance, many brokers are confused over their status and have asked for clarification from the city. He, along with other brokers, several of whom declined to speak publicly about the issue, say that, because health/life brokers often also act as agents for insurance companies, they have always believed they were exempt from paying city business taxes. Benton said he has asked his membership of roughly 500 insurance brokers and agents for feedback on their status and, in the meantime, says many are already paying their accountants to investigate state laws to see if they apply or not. “I think the city is very, very unclear in terms of what they consider an agent and a broker,” said Benton. “Clearly a considerable amount of people are being contacted, some have been audited and some have paid their CPAs upwards of $1,000 to investigate for them to see if they are exempt or have to pay. So there is obviously a huge situation here for the city to figure out.” But according to Eustrom, there is little left to interpretation. “We are not investigating our position on the difference,” he said. “We classify brokers as business owners, separate and apart from those agents of record who are paid for and work directly for insurance firms, and the tax laws for them apply.”

Public Comment Sessions Set for City Tax Report By JACQUELINE FOX Staff Reporter Business leaders across the Valley and citywide are expected to begin compiling their comments on the city’s report released Jan. 14 announcing recommended changes to its widely despised business tax system. Public hearings are scheduled for January 26 and Feb. 2 downtown, where city officials and members of the Business Tax Advisory Committee, established in 1999 under former Mayor Richard Riordan to study changes to the city’s antiquated tax system, will take comments about the report as they prepare a final draft of recommendations for changes to be handed off to Mayor James Hahn and the city council. From there, the council and the office of finance will ultimately have the last word over what changes to the tax codes are made, if any, and if those changes require any increases, as they now propose, and whether a ballot measure be put to the voters in 2005. While some components of the report are positive for many businesses it has already begun stirring up business owners who would be taxed at higher rates than others, should the current recommendations be approved. On the plus side, the report, which officials are calling a “work in progress,” recommends axing the gross receipts tax, which currently nets the city some $300 million annually, and instead tax businesses on their net income at a flat rate of $3.50 per $1,000. The flat rate plan also offers some relief for businesses who now pay what are called pass-through taxes on revenues earned by their subsidiaries and eliminates the 67 filing categories currently in place. But the $420,000, two-year study conducted by Fresno-based MBIA MuniServices Co. suggests the city tax businesses based on square footage of their operation, beginning at 2 cents a foot for some sectors, such as grocery stores, doctors and auto dealers, but going as high as 30 cents a square foot for others, such as commercial landlords, restaurants and apparel manufacturers. The latter element aims to keep officials from having to dip into the city’s coffers. But business owners and even some city officials have been asking for and expected some form of tax cuts as part of the recommendations. They say lowering taxes in one place and then raising them in another is not going to fly. “I equate it to rearranging all the deck chairs on the Titanic,” said City Councilwoman Wendy Greuel. Pass-through motion Anticipating final approval of the report to take several months, just prior to its release Greuel introduced a motion calling for the elimination of the pass- through taxes. “It (the report) has some good components, but I’m disappointed overall that it’s not reducing taxes at all,” Greuel said. “And we are particularly concerned about how long it might take before real reforms that make this city more business friendly are made.” BTAC Chairman Mel Kohn said he welcomed the criticisms of the MBIA report because they indicate that his committee will receive plenty of feedback, which he views as an essential next step in pushing for final changes. “I look at this report as a blueprint for what we do next,” said Kohn. “We are going to be asking for input from all of the various sectors out there. We want them to come to us with ideas and suggestions for changes and that includes looking into the issue of revenue neutrality and whether or not we can do something to lower the tax rates, not just shift the tax around.” Greuel agreed that input is crucial and said although the report will be heavily consulted, there will continue to be a strong emphasis on lowering taxes as the final draft is being compiled. “We’ve been pushing all along with ideas that may not be revenue neutral,” said Greuel. “I believe that if Los Angeles is business friendly, they won’t need to worry about the impact of lowering business taxes.” Ricky Gelb, owner of Gelb Enterprises, Inc. in Encino, operates a commercial real estate firm inside a 33,000-square-foot facility. He says, due to new taxes he’s just recently begun paying to cover community college renovations and a bond to fund county trauma centers, he’s looking at a current annual tax liability of close to $70,000. Tax cuts sought Like Greuel, he says tax cuts, not revenue neutrality mechanisms need to be considered if the city is serious about retaining businesses. “Making a change revenue neutral is not going to offer any kind of an incentive for people to come here,” said Gelb. In the meantime, BTAC’s five-year mission is coming to an end in June. Kohn said he and others have already begun to inquire about forming a replacement commission to oversee preparation of the final draft report.

Valley Business Leaders Cautiously Optimistic By JACQUELINE FOX Staff Reporter Leaders in the Valley’s business community appear to be heading into the year relatively optimistic about the economy, but, while there were nominal layoffs and cuts in spending at their firms in 2003, some are still treading into 2004 cautiously, holding out on capital improvements and, to some degree, staff expansions. According to the results of The San Fernando Valley Leadership Survey distributed in late 2003, a quarterly joint project between the Business Journal and Cooper Communications Inc., 76 percent of those who responded to the survey said they felt optimistic about the nation and state’s economic recovery. There was a 50/50 split, however, between those respondents who reported that they did not hold an optimistic outlook about the economy or their business and those who are unsure. And, while an overwhelming majority of those respondents said they did not curtail spending in 2003 on business upgrades or capital improvements, the gap narrows when it comes to the year ahead: 37 percent said they did not expect to make investments in their businesses this year, compared to 37 percent who said they did, and 26 percent who said they were not sure. Marty Cooper, president of Cooper Communications, said the mixture of optimism and uncertainty is not surprising, given the fact that this recovery period began more than a year ago and has taken its time picking up steam. “The recovery is as was predicted, slow and undramatic,” said Cooper. “In light of that, it’s understandable that despite a business-friendly governor and slight gains in economic figures, that business people would be as cautious as they are optimistic.” Mirroring economic data also released in late 2003 by Cal State Northridge, layoffs across all business sectors in the Valley remained relatively low. According to the responses, 68 percent said they did not have to lay workers off last year, compared to 32 percent who said they did. In addition, 45 percent said they intend to hire more workers in 2004, compared to the 26 percent who said they did not and the 29 percent who said they were undecided. Cooper says the region’s rich base of skilled workers helped keep local job cuts to a minimum. Skilled workforce “One of the key reasons that our business community has avoided draconian layoffs is the fact that we are blessed with a highly skilled workforce,” said Cooper. “Because of that, employers in our region are probably more likely to keep employees on the payroll even in tough times, compared to some other regions.” That same logic, however, Cooper suggested, also works in reverse. “Because many of our employers perceive that they have good employees, and were unwilling to let them go even in a difficult time, it is understandable that now that the turnaround is beginning, they would not feel the need to make dramatic increases in their workforce now.” In other words, the “doing more with less” strategy is likely to continue to rule in 2004 as companies look for more ways to capitalize on existing resources to spur growth as the economy regains its strength. Not surprisingly, the No. 1 obstacle for businesses, according to the survey results, is the high cost of workers’ compensation insurance: 72 percent identified workers’ comp. costs over business taxes as the most pressing problem impacting operating costs, compared to the 28 percent who said business taxes presented their biggest concerns. “While not as dramatic as the governor’s threat to put workers’ comp. reform on the ballot, should the Legislature fail to recommend substantial reforms by March 1, the fact that 72 percent of those responding to the survey designated workers’ comp. as their biggest obstacle for business success should send an unmistakable message to our legislators in Sacramento,” said Cooper. Flip Smith, owner of Flip’s Tire Center in Van Nuys, said he made some heavy investments in his inventory base in 2003, despite uncertainty about the economy going forward. But, he said, the spending will slow down dramatically this year and he intends to hold tight until he sees a pattern of sustained growth and recovery. He did not lay off workers in 2003 and says he doesn’t want to have to this year either. “The business is off a little and I’m not interested in putting in a big inventory here,” said Smith, who participated in the survey. “I just want to maintain it now. I have 28 employees and I don’t want to have to lose any of them. I just want to make sure we remain efficient and see what happens.” Smith, who’s been in business 37 years, said his annual workers’ comp costs went from $50,000 in 2002 to $78,000 in 2003. “Today, it’s not just about selling tires,” said Smith. “You’ve got to be a well-rounded businessperson to handle the balls that are thrown at you. Otherwise, you won’t make it.” Growing firm Barry Cohn, president of RGEB Inc., an employee benefits firm in Tarzana, said he did hold out on spending last year, partially because the company invested roughly $35,000 in computer and software upgrades in 2002, but also due to uncertainty about the pace of the recovery. This year there will be no upgrades, however, but the company does intend to hire two more employees. “We are up to eight people now and will probably get up to 10 by the end of year,” said Cohn. “Growth is causing a need for more people. In 2003 we doubled our revenues and it looks likely that we may do so again in 2004.” A majority of the respondents said they believed Gov. Arnold Schwarzenegger could and would likely implement further changes to make the state more business friendly. Of the 38 responses, 53 percent said they also supported Schwarzenegger’s plan to float bonds to pull the state out of the red, compared to the 35 percent who oppose the idea and 12 percent who remain unsure. Of the 205 surveys distributed to a vast cross section of the Valley’s business community, 38 were answered, representing a 19 percent return rate, which is on par with previous response rates for the quarterly surveys, which have averaged between 19 and 22 percent. “The fact that our leadership surveys continue to draw such high responses, demonstrates the concern, involvement and commitment of our business community toward improving our society and its quality of life,” said Cooper. Brighter Outlook Are you optimistic about the economy for 2004? Yes: 68 percent No: 16 percent Not sure: 16 percent Will your company hire more employees in 2004? Yes: 45 percent No: 26 percent Not sure: 29 percent

Response to Internet Changes Positive Move for ValueClick By JACQUELINE FOX Staff Reporter Westlake Village-based ValueClick Inc.’s strategy for surviving the fallout of the dot-com bust by diversifying its services is finally paying off. After several quarterly losses in 2001 and 2002, ValueClick announced its fourth consecutive quarter of income growth and has revised its annual earnings projections for its fiscal year 2003. The company’s core business is banner ad placement based on a cost-per-click model, the highly preferred channel by online advertisers because if they don’t get hits, they don’t have to pay. But through a series of acquisitions since 2002, ValueClick has also stockpiled a suite of online ad research and analysis tools, giving it the ability to provide its customers with what’s known as “ad-serving” technology and putting the company back on solid footing within an industry emerging from a devastating two-year slump. ValueClick’s net income for the third quarter ending Sep. 30, 2003 was $2.0 million, or $0.03 per diluted share on revenues of $22.7 million. Those figures exceeded the company’s previously issued guidance for the quarter of $21.5 million and are up from a loss of $0.8 million or ($0.01) per diluted share for the same quarter in 2002 on revenues of $17.3 million. The company’s stock hit a 52-week high of $11.12 and a low of $2.61. It was trading at $9.77 on Jan. 15. ValueClick anticipates total revenues for its fourth quarter of 2003 ending Dec. 31 to be roughly $27 million, up from previously issued guidance of $25 million. And, based on market projections for a continued rebound in online ad spending, the company is anticipating revenues of approximately $90 million for its fiscal year 2003, up from its prior guidance figure of about $87 million. “ValueClick has evolved 100 percent since we began in 1999,” said James R. Zarley, the company’s chairman and chief executive officer. “We have purchased nine companies in the last three years, three in 2003 alone. What we’ve been doing is adding these products so that ValueClick becomes a full-service company for anyone who is trying to gain exposure through online advertising, whether that’s driving business to their sites, e-mail capabilities or through banner ad placement, we can assist them with whatever they want.” Makes acquisition Those acquisitions include the December purchase of Commission Junction, which the company combined with its Be Free affiliate marketing subsidiary for approximately 3.0 million shares of ValueClick common stock and about $26.1 million in cash. Just a little over two years ago Internet ad spending had fallen by roughly 7 percent, sucking nearly $2 billion out of the industry as e-businesses went belly up in droves. The resurgence did not begin until late 2002, and, even so, only by modest increases of about 3 percent. Lessons, however, have been learned since the go-go early days of e-commerce. It takes more than a brand name and certainly more than a banner ad to push a sale, and research, marketing and ongoing analysis of the medium are now playing a key role in how advertisers spend their money. “If all we were today was a click-per-pay advertising agency, we’d be out of business,” said Zarley. “In fact, there’s no way we could have ever become a public company had we not set a goal of diversifying to the degree that we have.” According to Greg Stuart, president and CEO of the Interactive Advertising Bureau (IAB), a New York-based trade association for online advertising and media companies, as of September of 2003 online ad spending had jumped by roughly 10 percent over the previous quarter and is expected to climb by another 18 to 20 percent in 2004 representing about a $5 to $7 billion increase in spending over the previous year. Serious customers “Clearly the Internet is now a solid mass medium,” said Stuart. “We know more, we have better technology available than we did four years ago and we understand better how to track online ad performance, which has brought back serious companies who, for some time, were just not putting that much of a percentage of their ad dollars into online formats.” In addition to expanding core services, companies like ValueClick have also signed on to a voluntary set of industry standards established by the IAB in 2002 that aim to both simplify the ad-placement process, as well as promote confidence in the medium.

NEWSMAKERS Simon Elected to Lead Chamber Alliance Joel Simon, an attorney and partner with the Encino-based law firm of Alperstein, Simon, Gillin & Scott LLP has been elected to serve as the chairman of the United Chambers of Commerce of the San Fernando Valley. Simon, who replaces local attorney Bill Powers, will serve a two-year term heading up the UCC, which represents the Valley’s 24 member chambers, approximately 8,000 businesses and roughly 250,000 employees. Simon holds a master’s degree in history from Cal State University, Northridge. He graduated cum laude in 1978 from Whittier College of Law where he was given the American Jurisprudence Award in commercial transactions and constitutional law. He was admitted to the California Bar that same year. In addition to his practice, Simon has taught American history, political science and far eastern history at Rio Hondo and Cerritos colleges. Simon has tackled tough cases involving business law, real estate, civil litigation and commercial transactions and is also a certified mediator. He is a member of the Los Angeles County Bar Association Professional Responsibility and Ethics Committee, the Los Angeles Trial Lawyers Association and former trustee of the Hollywood Bar Association. Simon often lends his expertise through pro bono work with municipal and superior courts in civil matters, small claims and other issues. Jacqueline Fox Consulting Jonathan Goldhill, principal of Jonathan Goldhill & Associates in Woodland Hills, has opened an office of The Growth Coach, a business dedicated to helping small business owners achieve more success and balance in their life. The Growth Coach is a network that has coaches in more than 13 states and Canada. Goldhill will continue to provide project consulting services to entrepreneurial businesses. Government Los Angeles County Supervisor Michael D. Antonovich has appointed Isaac Diaz Barcelona to the county’s Citizens’ Economy and Efficiency Commission. Barcelona is the president and CEO of the Palmdale Chamber of Commerce and former spokesman and public relations director for the Palmdale School District. Land Use Jeff Lambert, former chief of planning for the city of Santa Clarita, has opened a consulting practice specializing in land use and development. Jeff Lambert Planning and Government Relations is continuing to work with Santa Clarita on some projects. Marketing Sherman Oaks-based Sunkist Growers, Inc., a citrus marketing cooperative, appointed Jeffrey E. Moxie as Vice President and Chief Administrative Officer. Moxie comes to Sunkist from Virgin Entertainment Group in Los Angeles, where he was CFO. Media Calabasas-based THQ Inc., an entertainment software manufacturer, promoted Ian Curran to the newly created position of vice president, European publishing, from managing director of THQ UK. It also gave Martin Good the title of vice president, Asia-Pacific Publishing. Curran will oversee the company’s European operations in England, Germany and France. Good, who was with THQ since 2000 as general manager of Australia and New Zealand operations, had overseen the Asian markets as well with an opening of a Korean office in early 2003. Daily News Publisher John Schueler was promoted to president and CEO of the Los Angeles Newspaper Group. In that role, Schueler, 54, will oversee the operations of eight area daily newspapers owned by MediaNews Group of Denver: the Daily News, the Long Beach Press-Telegram, Pasadena Star-News, Whittier Daily News, the San Gabriel Valley Tribune, the Inland Valley Daily Bulletin, The San Bernardino Sun, and the Redlands Daily Facts. Schueler’s office will remain at the Daily News and LANG headquarters in Woodland Hills. He came to the Daily News in July 2001 from the Star Tribune in Minnesota where he was president and publisher. Tracy Rafter was promoted to publisher and CEO of the Daily News. She was most recently senior vice president of advertising and marketing for LANG. Rafter has been with LANG since February 2002 and will report to Schueler. Non-profit The Greater San Fernando Valley Chapter of the Association of Fundraising Professionals chose Gregory A. Silberman president. Silberman, an accomplished pianist with two degrees from the New England Conservatory in Boston and 27 years of experience in fundraising, is vice president of Partners in Care Foundation, a non-profit based in Burbank that promotes improvement in healthcare and social services. Previously, Silberman had worked at the Northridge Hospital Foundation and the Junior Blind in Los Angeles, as well as several performing arts non-profits. Technology Fred R. Jones has been named chief financial officer for Valencia-based 3D Systems. Jones replaces James Selzer, who was terminated following an internal investigation into the company’s accounting methods in early 2003. Jones previously owned his own consulting firm and served as CFO for Thomas & Betts Corp. and Joy Technologies Inc. 3D Systems also chose Bob Kayser as Vice President of Global Sales, effective Jan. 19. He joined the company, a manufacturer of solid imaging products, two years ago from KEMET Electronics as managing director, Asia Sales and most recently served as vice president of Asia Sales, based in Shanghai, China. Ventura-based Document Systems, a provider of copiers and other digital imaging devices with offices in Woodland Hills, promoted Larry Levine to the post of vice president of major accounts. He had been with the company as a senior marketing executive since 1994, and will be responsible for all sales and marketing efforts aimed at new customers for the company.

Tech Firms Capitalize on Higher Business Spending By SLAV KANDYBA Staff Reporter Things are looking up for Hormazd Dalal and his Encino-based Castellan Inc. in this young year. Castellan specializes in IT consulting and also leases hardware and software. The small firm took in $3 million in sales in 2003, ending on a profitable note and Dalal recruited a Hewlett-Packard employee to join him this month as director of business development. The small company is one of scores of technology-related firms in the Valley that are taking advantage of a increase in capital spending by businesses as the economy picks up and companies finally undertake long-awaited upgrades to their computer systems that were put off in the economic downturn. Business investment grew 14 percent in the third quarter, the Commerce Department reported, better than the 11.1 percent rate the government had predicted it would. Equipment and software investment climbed at an 18.4 percent pace, its best showing in five years. The buying was fueled by corporate profits, which the government said grew at an annual pace of more than 30 percent. “(My) business is maturing,” Dalal said. “We’re changing our focus to larger businesses.” As the economy begins showing signs of loosening up, driven partly by the tech sector, local small to medium-sized businesses like Dalal’s that specialize in services from hardware and software maintenance to consulting are expecting their business to fare well this year. Likewise, larger Valley-area firms that produce and distribute semiconductors are seeing better times. “I think there is a need there part of the need is that in this last downturn, IT projects were being put on hold, things they would have wanted to have weren’t implemented,” Dalal said. At Encino-based Data Systems Worldwide Inc., President Phil Mogavero said his firm is changing. “The one way we have been changing is to provide more long-term contracts,” Mogavero said. DSW, in existence since 1971, has a diverse clientele, from mid-level to Fortune 500. “Our goal is to become strategic,” Mogavero said. “What we are really trying to do is perhaps have less clients.” Doing that will result in “better pricing and higher level of service,” Mogavero said. DSW, a $20 million company with 55 employees, has seen a steady increase in 2003, with a 12 percent increase in revenues from the second to third quarters and 13 percent from the third to fourth. Business had been shrinking for two years, he said. “What we’re finding is we can get more dollars from fewer customers than from a shotgun approach,” he said, adding the number of clients is continuing to rise nevertheless. Growth is surging in the semiconductor industry which has three major local players. “When the semiconductor industry starts going, everything else starts going,” said Molly Tuttle, director of communications at the Semiconductor Industry Association, a San Jose-based organization. “I think business spending is a large factor it has been quiet but it is beginning to pick up, and we’ve seen an increase in the second half of 2003.” Revenues for semiconductor companies as a whole, Tuttle said, are expected to grow by 19 percent this year from last. In 2003, they were 17 percent, a two percent increase over what was expected. The industry was flat in 2002, with only 1.3 percent growth. Although it took in $140 billion that year, it was reeling from “one of the steepest downturns” in 2001, according to Tuttle. Vitesse Semiconductor Corp. of Camarillo reported revenues of $42.8 million for the fourth quarter of 2003, compared to $35.6 million in the same quarter in 2002. For the fiscal year ended Sept. 30, 2003, it had brought in $156.4 million compared to $151.7 million in the year ended in 2002. Camarillo-based Semtech Corp.’s revenues for the third quarter of fiscal year 2004 increased 8 percent compared to the second quarter, to $48.1 million from $44.6 million. Its revenues were $47.2 million in the prior year third quarter. On Jan. 7, Westlake Village-based Diodes Inc. reported a 10 percent increase in guidance in revenue from the third quarter, which stood at a record $34.9 million. Things are going so well, Diodes is increasing its own business spending. “Things are wearing out,” said Mark King, vice president for global marketing and sales. “Over the last six months, we started to replace laptops and desktop computers.” Different local businesses are approaching the good news in different ways, perhaps best exemplified in how Castellan and DSW’s presidents see the near future. While Castellan’s Dalal is ready to take his small business to the next level, DSW’s Mogavero is looking to stay the steady course. “I’m not excited yet, but optimistic,” Mogavero said. Although all the indications point to the tech industry flourishing in 2004, businesses are cautious and waiting to see if the strong start will be a false one. Mogavero expressed cautious optimism about the improving economy. “It’s warming up, not heating up (and) it’s well below the levels of 2000,” said DSW’s Mogavero. “After a couple of years of decline, we see encouraging signs that we hope will be sustained.”

Shoe Boutique Brings New York to Calabasas Step inside Dawn and John Spilman’s Leap Shoe Lounge and you are immediately struck by the sense that you have stepped beyond the provincial walls of old-town Calabasas and into the hip minimalist interior of a downtown Manhattan boutique. This posh fashion haven lies adjacent to the Commons in the Calabasas Plaza. The team behind Calabasas’ newest retail outpost are shoe industry veterans. Dawn is a creative art director, having worked on projects with Ugg Boots, and previously as an executive at L.A. Gear. She is still currently managing advertising campaigns in the footwear industry. John also works in footwear, and is presently Reebok’s senior sales manager of fashion. As local residents and shoppers in Calabasas, they are attempting to fill the void in the West Valley’s fashion forward apparel market by opening their shoe lounge in the center formerly known for its post office, selling a product directed at both the fashion-forward high school student, as well as her still hip parents. There exists only one other high-end shoe store on this end of the Valley, located in the Commons, targeting an older, more conservative demographic. Dawn explains how the couple came to open the boutique. “With only one other fashion shoe store in Calabasas, we saw an opportunity in this area to sell both men’s and women’s shoes to the less conservative demographic. We knew this is where we wanted to be, and after identifying the space, waited over one year for it to become available. “The Calabasas customer is both sophisticated and discerning, so we have been buying accordingly. Some of the lines Leap carries include: Costume National, Ugg, Diesel, and Irregular Choice, along with Eugenia Kim hats, and Un Apres Midi de Chien bags. “Having been in the shoe business for 20 years, we have an advantage over others new to the business as we consistently go to trade shows and are able to view the new lines and trends before most retailers and the general public. Although we have only been open two months, sales have been consistently increasing, and in the future, we are looking to open stores further north in Santa Barbara, and perhaps Palm Springs.” Margaux Lushing