by The Editors on April 20, 2011
For the next two days, online shoppers can get product from Matix and Hurley at pretty much wholesales prices thanks to Jackthreads.com.
The “members-only, online shopping club that curates top-tier street, skate, surf and contemporary men’s fashion brands” is helping some major labels blow out core shops by moving some of their fashion failures at rock bottom prices. Nice, huh?
As one of our readers said via email:
“The strategy of big brands selling great product at wholesale to the public is the demise of the specialty retailer. Without the positive health of the specialty retailer (aka local surf shop) the brands will not have an authentic platform to tell their story.”
Guess the majors will have to rely on their “company stores” to get them through. Welcome to the aughts.
[Link: Jackthreads]
by The Editors on April 20, 2011
Westlife Distribution LLC, the parent company of 686 Technical Apparel has formed a strategic partnership with Canadian-based NRI Distribution Inc. to provide “boutique, turn-key fulfillment services . . ; E-Commerce solutions; and finally a variety of brand support services” in the US of A.
“The combination of being both a manufacturer who successfully runs a US warehouse and one that globally utilizes 3PL facilities, gives us a unique perspective for this industry on the needs of a growing company,” states Westlife CFO/COO, Douglas Sumi. Adds Michael Akira West, President and Founder of Westlife, “Our core competencies are creating quality products and services, while quickly implementing it into the marketplace. We’ve been providing backend services for boutique companies for years. Now we’re excited to team up with a proven leader and do it on a larger scale. ”
Follow the jump for the rest of the details. [click to continue…]
by The Editors on April 15, 2011
The Motley Fool’s Seth Jayson takes a look at Volcom stock today in a story titled, Is Volcom Going To Burn You? In it he looks specifically at Accounts Receivables and Days Sales Outstanding (DSO) to attempt to see the future of the company.
AR that grows more quickly than revenue, or ballooning DSO, can also suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.) . . Why might an upstanding firm like Volcom do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.
Jayson doesn’t say that’s what VeeCo is doing, just that the numbers are interesting. If you understand any of this, click the link for more.
[Link: Motely Fool]
by The Editors on April 14, 2011
Now to channel Antwuan Dixon all we have to do is pull a shirt over our heads and say “wanna catch my fade” thanks to KR3W’s new flip tees.
KR3W created two limited-edition “Flip” T-shirts, featuring actual size, photo real images of Antwuan Dixon’s and Lizard King’s faces on the inside of the T-Shirt. Available now at select KR3W retailers worldwide.
Seriously. Why hasn’t anyone done this before?
[Link: KR3W via Digital Skateboarding]
by The Editors on April 13, 2011
It was only a month ago that Michael Marckx left his position as VP of global marketing at Globe to become VP of marketing at Spy Optic. It appears he’s been chewing up the scenery at the Carlsbad-based company.
Today, the company announced that Marckx has been promoted to president and that CEO Stone Douglass is “stepping down.” Orange 21 board chairman Seth Hamot says this is a turning point for a company (that has had its share over the last decade).
“Today marks an important milestone for Orange 21 and SPY: We have a new management team dedicated to growing our firm through enhancing our brands,” says Seth Hamot, Orange 21 chairman of the board. “Our new CEO, Carol Montgomery, previously helped grow Revo from a small sunglass brand to a much larger firm. Similarly, Michael Marckx was instrumental in resurrecting the Ocean Pacific (Op) brand, and recently has run divisions for Globe International, the action sports lifestyle brand and world’s largest manufacturer of skateboards. Finally, the inclusion of Michael Angel to our senior executive ranks will help us build a stronger company on a solid foundation.
Nice 30 day plan, Marckxy. What’s on the schedule for next month? [click to continue…]
by The Editors on April 12, 2011
Western Australia’s West Suits was forced to “call in administrators” when a rough economy got in the way of continued sales growth according to a story in The West.
The O’Connor-based business, which generated about $6 million in total sales last year, has secured debts owed to National Australia Bank of about $1 million. . . Up to a further $1 million is also owed to several trade creditors, and an unnamed private investor is understood to have advanced the company several million dollars.
According to the story, administrator Dino Travaglini, from Perth firm Moore Stephens says “it would be business as usual while he sourced a buyer for the company.”
Being the little guy has never been easy.
[Link: The West]
by The Editors on April 5, 2011
by The Editors on March 31, 2011
Volcom reportedly filed a trademark infringement lawsuit in the Central District of California on March 29, 2011 against Jay-Z’s Roc Nation brand, according to a story on All Hip Hop.
According to the complaint, Roc Nation’s logo is too close to their own, which they have been using in trade since 1991. . . Additionally, Volcom claims the logo could create confusion in the marketplace, since their label Volcom Entertainment, also uses a similar, registered trademark. . . “While Roc Nation appears to have initially used the diamond only in combination with the words ‘Roc Nation’ it is now using the diamond logo on its own, causing a likelihood of confusion among consumers,” Volcom’s complaint reads.
Can you tell the difference?
[Link: New York Daily News and All Hip Hop]
by The Editors on March 30, 2011
Core action mall retailer Zumiez management seemed very happy about their reported $0.79 per share net income in 2010, but the earning didn’t come from any increase in business, but rather from some “fishy” accounting tricks, according to a story on Forbes.com.
Zumiez (ZUMZ), a retailer of cool action apparel turned to an old account ing trick to boost its 2010 earnings by 13%. Digging through the foot notes of its 10-K filing, we found that ZUMZ increased the useful life estimate of its lease hold improvements. . . This change in accounting estimates reduces the company’s depreciation expense by $2.7 million after-tax and increases GAAP earnings by 13%.
But that’s apparently not the only trick in Zumiez accounting bag, according to writer David Trainer.
Increasing useful-life estimates is not the only accounting trick in ZUMZ’s bag. Further analysis of the financial footnotes also reveals that the com pany carries over $310 million (nearly 50% of its market cap and over 120% of reported net assets) in off-balance sheet debt. This large, hidden liability means the valuation of the stock is much higher and riskier than it appears.
Apparently, Zumiez is shifting over to the “whatever it takes” program.
[Link: Forbes]
by The Editors on March 25, 2011
Losses at Orange 21, the parent of Spy Optic, increased $1.2 million in 2010 to $4.6 for the Carlsbad, California based eyewear marketer, according to financial repors for the year ended December 31, 2011. But some of those losses were actually investments according to CEO Stone Douglass.
“We are pleased with our results for 2010 even though we had substantial direct and indirect additional operating costs related to our two newest brands, Margaritaville and Melodies by MJB, for which there have been minimal sales during this period,” commented Stone Douglass, the Company’s Chief Executive Officer. “Gross margins increased to 48% for the year ended December 31, 2010 from 40% during the comparable period in 2009, aided by more effective sourcing in Asia, and improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from our Italian manufacturer, LEM.”
To get the full story tune in to Orange 21 investor conference call on March 30, 2011 at 1:30 PM PST. Just dial 1-866-711-8198 [click to continue…]
For the next two days, online shoppers can get product from Matix and Hurley at pretty much wholesales prices thanks to Jackthreads.com. 
