Our
2013 NEWSLETTER ISSUE 2
Issue 2
CONTENT
Progress
Unraveling the Game Plan People
Celebrating Yahoos
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CEO Message..............1 Progress.........................2 Partners.........................6 People............................8 Community.................10 Perks..............................12
EDITORIAL AND DESIGN TEAM
Tammie Kang Suzanna Tang Chau Nguyen Nor’Huda M. Abidin
Partners
6
Community
10
The Acqui-hiring Foresight
Moments of Love
PROGRESS
Message from
Marissa
Who we are competing against is ourselves, because we have no control over how others perform. In light of the small victories we have managed to gain on the journey towards making it this far, it is important to remember that it is alright to take risks, and to learn from failures. Therefore, let us take successes and failures head-on as they come.
All of you are doing important work. Please do not stop. Let us keep moving as one and continue the tradition of bold innovation and creativity, which would ultimately inspire and delight users and advertisers.
My office will always be open to anyone who has valuable feedback or ideas to share for Yahoo!’s future. There is much more in store for us. We are all in this together. Regards,
Chief Executive Officer
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PERKS
Thank you for having faith in our renewed mission and sticking with Yahoo! through the tough times. Thank you for taking a big risk on the next big thing. Thank you for all the sleepless nights. Thank you for the curiosity that has gained us attention in the websphere once again.
COMMUNITY
It has been an honor being part of such a resilient team and being able to work with all of you. We owe it to your hard work, dedication, trust, support and innovative thinking that Yahoo! was able to emerge as the most popular U.S. website for the month of September 2013, with 196.6 million unique monthly visitors.
Our success in acquiring Tumblr has introduced us to creators, curators and audiences of all ages, bringing in a significant new community of users to the Yahoo! network. Yahoo! and Tumblr have been working closely to create advertising opportunities that are seamless and enhance user experience. We have indeed proven that we can make Tumblr even better and faster. Tumblr, like all our other acquisitions, are incredibly special and make up the Yahoo! we are today.
PEOPLE
We have indeed embraced change well. Change may not always be easy to swallow in the initial stages, and neither is change always kind to everyone. For us, change has invited much scrutiny and criticism from observers and outsiders. Despite the criticisms, we have to stand strong because we can only move forward. Now, we are once again on track in embarking on our renewed mission - making the world’s daily habits more inspiring and entertaining.
Our move away from telecommuting had gained much coverage from the media, and even sparked much controversy. Since June this year, all Yahoos have been coming to work at the office and engaging in dynamic face-to-face meetings. Contrary to the pessimistic views towards the decision, the move has been successful in increasing our productivity level as a whole. It has also created more opportunities for collaborative discussions where we get to share and deconstruct ideas. We all have a personal part to play in changing Yahoo! for the future.
PARTNERS
The past year has been an exciting and fast-paced one for us. We have adopted a new Yahoo! logo, improved the outlook of our existing products, acquired companies to help in the creation of new products, minimized physical distance by collaborating more at the office, and welcomed highly talented individuals into our Yahoo! family.
NEW LOGO: A SENSE OF BRAND PROGRESSION By Bob Stohrer, SVP of Brand Creative
Y
ahoo! is progressing radically as a company and innovative product design is one of our core focuses at the moment, adding to a better user experience. Great product design gives us an edge in current competition, and it reflects the spirit of humanism, which has always been at Yahoo!’s core. In early August, we rolled out a new design for several of our apps and web services, and since then, we have received plenty of positive feedback from our users. However, one thing had remained unchanged for the past 18 years – our logo. Our users noticed the discrepancy, and voiced out, ‘Your logo doesn’t look like your apps!’ At that time, our management team all agreed; when your users and partners start to say that your branding does not look like your products anymore, it is time for a change. The logo change initiative was also pushed by 87 percent of our employees who voted for a change in logo.
know Yahoo! best. After carefully considering and evaluating over 30 logo prototypes, we were most satisfied with this logo - which you already know as the new logo:
“We knew we wanted a logo that reflected Yahoo - whimsical, yet sophisticated. Modern and fresh, with a nod to our history. Having a human touch, personal. Proud.” - Marissa Mayer I was exhilarated to lead the logo design team, yet at the same time, I was nervous. We had not changed our logo for years and it was such an icon for our company. The new logo had to provoke a sense of progression that we are embracing at Yahoo!; it must represent the sophistication and elegance of Yahoo! today, while preserving our brand hallmarks that people had loved for decades. It was a huge task. Fortunately, I had a strong logo team made up of the most creative, intuitive designers we have at Yahoo!, in addition to the tremendous support from CEO Marissa Mayer. More than anyone, she understood the changes our company was going through and she had a clear vision of what Yahoo! strives to become. Her insightful judgment guided us through the process and helped us make quicker decisions. We started out by identifying what the redesigned logo should retain: our company’s official color purple, the unproportional double-o’s, and last but not least, our familiar exclamation point – which have all become so recognizable to the Yahoo! brand. Along the way, we sought input from various inhouse apps and service teams for ideas and inspirations. Our approach was to make sure the new logo would come out as authentic as possible, because it was built by people who
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In my opinion, the logo fits in beautifully with our product apps and web interface, and it completes the look of sophistication and refinement. Obviously, we were not going to abandon the fun that the Yahoo! logo always brings about. We spent the subsequent weeks working on various applications and treatments of the logo, making the exclamation point an impish character that moves around the logo before resuming to its position. You can view the changing of the animation on Yahoo!’s front page. We want to engage our users in a little fun every time they open our homepage or launch our apps on their phones. Being a fan of the old logo myself, I completely understand how sad it must be to see the logo, which we have known and loved for so many years, go. The core values of Yahoo! still remain the same – our pride, our strive for innovation, and personalization – and these definitely reflect in the new logo. Imagine giving your house a new coat of paint after 18 years: it will make your house look nicer, but after all, it is still your house and your feeling for it remains unchanged. It was a right time for Yahoo! to embark on this journey of change, and I hope everyone is as excited as I am to be onboard. ✳
PROGRESS
A RESPONSE TO THE WORK-FROMHOME BAN
REMINDER:
I
PARTNERS
t has been four months since the ban was introduced. The management team has gathered feedback from Yahoos worldwide via surveys. After collating the results, we found that 70 percent of Yahoos were supportive of the ban while 30 percent indicated otherwise. However, we also noticed that Yahoo! units in the cities were largely receptive of the ban while people who were not as supportive mostly live in areas where there are no Yahoo! offices. The management team is currently working with them to alleviate their commuting woes. Right now, we are thinking of providing transportation in those areas. Alternatively, we are also discussing the feasibility of constructing temporary offices nearby to help them ease into an office environment.
Contributors: Donna Morris, Senior Vice President Global People and Places Jacqueline Lee, Human Resources Manager
We are still taking orders, so trade in your Blackberries with your IT teams and get your smartphones* now! *Every Yahoo is entitled to choose from the following: Apple iPhone 5, Samsung Galaxy S3, HTC One X, HTC EVO 4G LTE and Nokia Lumia 920.
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Lastly, changes are not always set in stone and we will continue to monitor the situation as we progress. In the meantime, the management team is happy to receive more feedback because we are determined to make it work for everyone. ✳
COMMUNITY
In our strive to improve Yahoo! for its users, we would like to urge everyone to cooperate because all Yahoos are valuable. The management team would do our best to help you adapt to changes. It is also natural that for every change we make, criticism arises; however, we encourage everyone to look past this and let us focus on Yahoo!’s development.
We mentioned in our previous issue that we were phasing out Blackberries as our corporate phones and introducing smartphones in 22 countries, along with corresponding monthly and data plans. We kickstarted this initiative this August, and we are pleased to note that it has been generally well received by our employees worldwide. Now, we hope to start disseminating the smartphones as soon as possible. We want our Yahoos to have devices similar to our users. In that way, as creators, we will be able to better understand our users’ experience.
PEOPLE
We also understand that there has been negative media coverage surrounding this issue. There are articles claiming that Yahoo! ‘disses’ working parents but we would like to reaffirm that we respect every Yahoo and our intention is not to disregard anyone. Rather, through this policy, everyone is empowered because his or her ideas are valued by being physically present for collaborative meetings.
YAHOO! MAKEOVERS What does our recent logo change mean for Yahoo! offices worldwide? Makeover time! Take a sneak peek at how Yahoo! offices in different parts of the globe have transformed. Yahoo! New York The New York City-based Yahoo! team has recently moved into a four-story space just around the corner from Times Square. It is an important sign of the new direction of Yahoo! as the team has taken over a portion of this iconic building in the heart of Manhattan, which was home to the New York Times for nine decades. The team is outfitting this breathtaking new space with growth in mind: to grow the Yahoo! NYC family by up to 60 percent, with a special focus on expanding its engineering team over the coming months and years. It is definitely amazing to have a Yahoo! sign shining over Times Square. The new space has brought together the Yahoo! NYC family that initially operated in three different locations around the Big Apple. Now, everyone can collaboratively participate in the culture and better contribute to positive momentum!
Yahoo! Brazil The Yahoo! Brazil team will be shifting to a space within the Sao Paulo Chronicle building at Fifth and Mission later this year. The team is designing a cool, fun and beautiful space to inspire collaboration and innovation. These days, transformation is palpable everywhere we turn at Yahoo!. For this reason, we Yahoo! Brazil team chose to move into the Chronicle building, as it personifies the digital revolution in how people around the world consume media. The spacious new office will allow the growth of the team. The Yahoo! Brazil team can look forward to a fabulous onsite environment, including great food, a game room, collaborative work stations, and ample room to work together and have fun.
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AROUND THE WORLD By Susan Reses, Chief Development Officer
PROGRESS
Yahoo! Bangalore
PARTNERS
Instead of going through physical restructuring, ergonomic office furniture was brought in to replace all furniture in the Yahoo! Bangalore office to ensure a healthier environment for the Yahoo! Bangalore team.
PEOPLE
Research has shown that ergonomic furniture better facilitates employees’ performance and helps to increase overall productivity. The appealing design and bright colours of the ergonomic furniture that was brought in will most definitely lift the mood of Yahoo! Bangalore team at the workplace naturally!
COMMUNITY
Yahoo! Singapore The Yahoo! Singapore office just had their office renovation lately. The two-story office located in the Central Business District area has a brighter and more vibrant ambience, which would better spark innovation, collaboration and fun – an integral part of the working day. The Yahoo! Singapore office has 21 meeting rooms across two floors, including three video conference rooms that equip employees to make effective decisions through real time, face-to-face discussions. Who wouldn’t agree that a fun, relaxed environment makes for an engaging office space and a perfect breeding ground for creative ideas? ✳
PERKS
Our Y!
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“ACQUI-HIRING” WITH FORESIGHT
by Ken Goldman, Chief Finance Officer and contributions from the Yahoo! UK and USA Finance Teams
millions (USD)
$1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950
REVENUE (EXCLUDING TRAFFIC ACQUISITIO Q1’12
Q2’12
G
lobal firms are no strangers to making mergers and acquisitions. For Yahoo!, we acquire in order to progress. Our largest acquisition is Tumblr, purchased for $1.1 billion, and our latest one is Bread, a URL-shortener, which adds to a total count of 21 acquisitions. Yahoo! has made headlines on various media channels about the speed and rate of acquisitions we have made in the past year. Some were hopeful, while the rest were cynical about the efforts to turn the company around. However, Yahoo! has been benefitting from these acquisitions fairly well; in fact, we have made profits of $3.16 billion.
Why acquire? This is probably a question on every Yahoos’ mind. Marissa responded to this: “It’s about time that Yahoo! plays catch-up with our competitiors, and to do that, we need the talents that help give us an edge.” So if we don’t have them, we need to acquire them. Here are the key takeaways:
1. Tackling mobility The technology industry is shifting towards mobile. More resources are invested into developing mobile applications. It is time Yahoo! made a mark on the mobile platform, just as how we did on the Internet when we first started out. As such, Yahoo! acquires talents who will help us improve our mobile presence through “acqui-hiring”. We have “acquihired” advertisers from Bread, engineers from Xobni and product developers from GhostBird Software. Our team is expanding and currently working on revamping Yahoo!. For example, we have released mobile version of Yahoo! Mail. It is now speedier, less cluttered and more modern. We have received positive feedback from our users, and will continue to improve Yahoo!.
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Q3’12
Q4’12
Q1’13
“It’s about time Yahoo! plays catchthat, we need to have the talents tha have them, we need
- Marissa 2.
Expand our core product areas
Yahoo! is known for our products and services, such as our search engine, Mail, Sports, News and Finance. These are also our core product areas and we will continue to strengthen and refine them. The companies we have acquired can help us by contributing their knowledge, through the “acqui-hiring” model as mentioned earlier. We acquired Xobni, which stands for ‘inbox’ spelt backwards, to streamline Yahoo! Mail to mobile platforms. We have also acquired Qwiki to boost our search engine and Summly to cater our news better to users. We have also decided to add a new dimension to our sports service by introducing fantasy football. By acquiring Bignoggins we are able to do just that. Essentially, all of our acquisitions are instrumental to Yahoo! as we progress.
3. Online advertising revenue is not enough For the past five years, Yahoo! has not been earning much from online advertising; regardless, we are still a profitable company. This is because we have invested in upcoming companies. One
PROGRESS
Our First Transparency Report by Ron Bell, General Counsel, Yahoo!
The biannual report will be published on September 2013 with information gathered from 17 countries.
Why do we do this? Yahoo! users trust us with their particulars and it is important that we respect their privacy. Our employees also have the right to be updated with what our company does.
ON COSTS) Q2’13
PARTNERS
What is it? The report aims to dissect user data (i.e. name, location, IP address) requested by governments with regards to criminal investigations.
Q3’13
Q4’13
(PROJECTED)
a Mayer
What does this mean for Yahoo!?
What’s next? Bread is certainly not our last acquisition. Right now, we are looking into acquiring Hitpost, a sports-centric mobile application developer. Yahoo! is continuously growing and we are always on the lookout for talents and individuals who can contribute one way or another. Lastly, whenever there is input, there is output, so do look forward to the new Yahoo! ✳
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Earnings In the third quarter (Q3), our earnings met analysts’ expectations. Our total revenue was $1.08 billion, excluding acquisition costs, a 2% increase from Q3’12. Our profits also rose from $298.3 million last year to $3.16 billion this year. Additionally, we generated $506 million in display advertising revenue. This value increased by 1% since Q3’12. Yahoo! has started acquiring since late 2012 but we are finally reaping the benefits. As such, it is important to strategise for longterm success.
Talent We keep mentioning it and we also mean it. Talents are essential to any company and acquisitions help us attain them. We also do not want to let them go to our competitors. Since late 2012, we have received more than 60 employees and we are pleased to have them work with us. Welcome to Yahoo! More traffic We need to widen the scope of our target audience, and that was why we acquired Tumblr. Tumblr has a large user base aged between 18-35 years old. We hope to target this age group and drive traffic to Yahoo! eventually through Tumblr. We also hope to push catered advertisements to this group, and hopefully sustain our online advertising revenue. We have hitherto witnessed that some results of our search revenue (excluding traffic acquisition costs) was $414 million, an 11% increase from Q3’12. Yahoo! will definitely work towards encouraging more traffic.
COMMUNITY
such example is Alibaba, a highly successful e-commerce business in China. Our 24% stake in Alibaba has brought us $2.8 billion in revenue. Due to the volatile nature of advertising, depending on online advertising for revenue is insufficient. In an effort to lessen our risk and give us an edge over our competitors, we started acquiring start-up companies to attain their knowledge and talent.
PEOPLE
-up with our competitors, and to do at help give us an edge. So if we don’t d to acquire them.”
Likewise, we hope our commitment to accountability and more transparency will gain continual support from our valued shareholders.
CELEBRATING OUR YAHOOS! In Yahoo!, we make up our company. We take pride in our work but we are also proud of our talented colleagues that we get to work with every day. Let us recognize the contributions our fellow Yahoos have made and celebrate them.
LONG SERVICE AWARD Antony Ericsson Senior Agency Development Manager, Germany
For almost 20 years, Antony has led the Market Analytics department at Yahoo! Germany. He is an individual who David Filo himself describes as “the Gandhi of Yahoo!”. He leads through example and encourages the people around him by empowering them. But more importantly, he is calm in the midst of crisis. He led his team in Germany through the dotcom bubble burst in 2000, and motivated them to stay together despite the internal chaos within the company. With the rapid advancement of the digital industry, Antony admitted to have struggled to keep up with the immensely dense information age. However, he has never let his age affect his work. He keeps himself and his team updated on new trends and analysis methods via an initiative called T.M.I.T (Too Much Information Thursdays).
“Antony is like a dad to me. Yahoo! has complete trust in Daddy Tony and we are so very humbled to be able to work with him. I don’t know where we would be without him.” - David Filo, Chief Yahoo 8
At the age of 60, he is preparing for retirement. A new department head has been elected. Antony has stepped down from his leadership role and is now volunteering for the Senior Mentorship Programme where experienced employees get to give advice to new employees.
MISS CONGENIALITY Tammie Kang Site Ops Engineer, Singapore
YAHOOS!
ASK
Every week in the U.S. HQ, we have F.Y.I Fridays. We are now bringing this globally. Post your questions on the Yahoos! Ask page or email them to ask@yahoo.com
PROGRESS
Q:When can I expect the Yahoo! changes to complete? A: Thank you for asking this. I believe I myself do not have the exact answer for it. What I do know is that to grow as a company, we should never stop changing.
-Lucy Chew, Yahoo! Singapore
“She makes sure that the welfare of her colleagues are taken care of. To her, a happy team is a healthy team. I couldn’t agree more.” -Mohamed Farid, Yahoo! Singapore
Project K.I.L.L. Australia
2. A pay bonus for collaborative teams, based on nominations 3. Free lunches for all Yahoos from the URL Cafe 4. Mobile phone upgrade to allow Yahoos to immerse into the users’ world 5. Five more acquisitions, and more talents to join our Yahoo! family.
PEOPLE
BEST TEAM INITIATIVE
PARTNERS
“Tammie is an engineer but she has also singlehandedly initiated team-bonding activities for us.”
However, I can give you updates on what you can expect in the next year. Several things that you can expect are: 1. Physical restructuring of all
We will update the bulletin on Backyard when there are new changes. If you
Regards, Marissa
The project called K.I.L.L (Kind Intentions, Love Lives) grew into a full initiative when the team pitched the idea to the Marine Park Authority. Up until now, despite working fulltime, they still find time - out of working hours - to work on the project. “We all love animals and nothing breaks our hearts more than hearing about it on the news and not being able to do anything about it,” said Oliver Kerr, Account Executive & Team Leader for K.I.L.L. ✳
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The Yahoo! team in Australia started an initiative to use their technical expertise to help the ocean species of the Great Barrier Reef. Numerous habitats have been discovered to be at risk of extinction. One of them is the dugong. Over one thousand dugongs are hunted every year, over ten times the sustainable level. As a side project, the team have created a prototype to help monitor the waters to deter these dugong hunters.
COMMUNITY
not hesitate to post on the Yahoo! Ask page and we will address your concerns to the best of our abilities.
MOMENTS OF LOV OUR YAHOOS HELP PEOPL
At Yahoo!, we have a history of social engagement and a culture that nurtures personal passion to create a pos
ate in. In this issue, we want to highlight several CSR initiatives of Yahoo! offices around the world – which grea when giving back to the community.
Yahoo! Japan team raises donation after the Great East Japan Earthquake Since the Tōhoku earthquake hit east areas of Japan in March 2011, Yahoo! Japan has worked closely with many nonprofit organizations in Japan to help relieve the huge damages it caused to the country. Immediately after the disastrous event, Yahoo! Japan set up a donation system through its Emergency Disaster Fund, which allows people to make online financial donations on its homepage from the evening of March 11, 2011. As of January 2012, it has raised about 1.37 billion yen and as of January 2013, it has raised 3.5 billion yen in total to help people in affected areas to recover from the incident and rebuild their homes. Yahoo! Japan’s instant action to provide support after the Great East Japan Earthquake displays a great spirit of care and dedication to help a social cause, which is rooted deeply in the Yahoo! culture.
Yahoo! U.S. teamed up with Mortenson Construction to support senior citizens of Quincy city Yahoo! U.S. worked together with Mortenson Construction, a leader in the construction industry of the U.S., to donate supplies and build a new pergola for the Cambridge Assisted Living Facility for senior citizens of Quincy city, Washington. The new pergola has allowed the seniors to enjoy an outdoor living space during the hot summer months, which they did not have before, and it has also enhanced their living quality at The Cambridge. This project is the third community project that Yahoo! U.S. has joined in partnership with Mortenson, in addition to building a new play area for a local preschool and organizing a local drive to help the Quincy Food Bank. These projects show how Yahoo! U.S., in alignment with Yahoo!’s principles, strives to make a positive impact on society and support the causes that matter to Yahoos and the communities in which they operate in.
Yahoo! Singapore fights against cancer with “Purple Hope” campaign “Purple Hope” is an on-going project that Yahoo! Singapore has started two years ago in October 2011, in support of the Children’s Cancer Foundation (CFF) of Singapore. On the Yahoo! Singapore homepage, there is a direct link to a dedicated micro site featuring articles and interviews with children and families affected by cancer. Through the micro site, viewers will be able to make a financial donation directly to the charity and be eligible for 2.5 times tax exemption; at the same time, they can explore the personal pledges made by the Yahoo! staff in support of the cause. So far, nine Yahoos have pledged their hair and made other personal commitments to support the CFF. In the spirit of “community engagement” through making donations to the cause, the Yahoo! audience would decide who gets to lose their hair. Until now, the project has raised over 4.2 million SGD for the CFF – an amazing result from the effort of dedicated and compassionate Singapore Yahoos. The “Purple Hope” initiative clearly demonstrates that through our wide reach, reputation and engagement of a worldwide audience of millions, we are able to turn an idea into a movement and inspire people to act. That is what we call the ‘power of Yahoo!’. ✳
Contributed by: CSR team of Yahoo! U.S., Japan, and Singapore
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VE: LE IN NEED
atly demonstrate the core principles of Yahoo!
After showing us what you can do to make Yahoo! a greener place, now it is time to take action. We are officially announcing our second challenge, “Make It Happen”, which will take place from Friday, November 1 until Tuesday, December 31 2013.
You can find out more information about the second challenge through your office’s CSR team or department. We also welcome any queries at yahoogoesgreen-ask@yahoo.com. Thanks to you, we are very close to reaching our targeted carbon footprint reduction and setting a new culture of sustainability at Yahoo!. Let’s keep up the good work.
Contributed by: Christina Page, Global Director, Energy and Sustainability Strategy
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PERKS
Note: If you are interested in watching video submissions of other offices, we have uploaded all videos on our CSR page of our corporate webpage, under ‘Yahoo! Goes Green’ section.
COMMUNITY
The office that wins after completion of our two challenges can stand to win U.S. $10,000 in cash and a 50-inch Insignia television. As mentioned in previous issue, our criteria are based on strong office spirit, high commitment and spectacular results.
PEOPLE
Here are the details for “Make It Happen”: Adopt your proposed practices to reduce your office’s carbon footprint. Submit a report to showcase your progress and achievements at the end of the challenge.
PARTNERS
Since the official launch of our global initiative ‘Yahoo! Goes Green’ as part of the company’s new direction to increase sustainability at Yahoo!, we have received plenty of positive responses from our offices worldwide. In our first challenge “Show Us How”, we asked each office to create a video explaining why they support ‘Yahoo! Goes Green’ project and what they would do to reach their goals for a ‘greener’ office. After collecting your submissions, we are very impressed at the spirit and the commitment towards sustainability of our Yahoos. We are definitely enlightened and motivated to work as hard to accomplish our mutual goal of reducing the company’s total carbon footprint this year by 30 percent as compared to last year.
PROGRESS
sitive impact on the society in which we oper-
‘YAHOO! GOES GREEN’ STILL GOES ON!
YAHOO! PERKS
worldwide to
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“COMPANY WITH THE BEST TALENTS WINS” - Marissa Mayer, CEO
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