by The Editors on September 6, 2010
Billabong is apparently refinancing to the tune of US$780 million, according to a story on ifrasia.com.
Billabong International, an ASX-listed surf and skate lifestyle retailer, has signed a US$790m refinancing split equally between a three- and four-year loan. The four Aussie majors – ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac – were the bookrunners on the deal, which saw three others joining.
Looks like everyone is taking advantage of new lower interest rates.
[Link: ifrasia.com]
by The Editors on September 6, 2010
First Billabong reported that things in the branded boardsports fashion market weren’t going well and now Quiksilver adds in that things are going to get even worse, according to a story in the Sydney Morning Herald.
“We expect fourth quarter . . . revenues to be down 15 per cent after accounting for a weaker translation rate on the euro and the marked decline in consumer demand in the Asia-Pacific region,” Mr Scirocco said. . . Quiksilver posted a 12 per cent fall in third-quarter revenue to $US441 million ($481 million). Revenue in the Americas – dominated by a recession and high unemployment – was down 9 per cent but there was a 10 per cent drop in the Asia-Pacific region primarily due to market weakness in Australia. . .
Looks like Q1 2011 is going to be pretty bad. Get ready.
[Link: Sydney Morning Herald]
by The Editors on September 6, 2010
Oakley, a company that has historically tried to out maneauver Olympic sponsorship rules, has apparently nutted up and become the official eyewear sponsor the Team USA, according to a Tripp Mickel (behind the paywall) story on Sports Business Journal.
Terms of the multiyear agreement were not available, but sources said it offers the USOC both cash and value-in-kind. . .
Maybe someday Street & Smith will give us access to the whole story.
[Link: Sports Business Journal]
by The Editors on September 6, 2010
Quiksilver announced a double-plus good deal on the $150 million credit line they’ve been running, according to a story in Businessweek. The company got a new, lower interest rate and extended the credit line out for four years.
The new rate is 1.5 percentage points below its previous credit line arranged by Bank of America Corp.’s Merrill Lynch and General Electric Co.’s GE Capital. The credit line is now set to expire in August 2014.
That’s good news for the company that is currently carrying $700 million in debt.
[Link: BusinessWeek]
by The Editors on September 3, 2010
Japanese snow pipe superstar Kazuhiro Kokubo has joined Corey Duffel, Chris Pastra, and Steve Caballero on the Armourdillo team.
Kazu, who hails from Hokkaido, Japan, brings his unique personality and his one-of-a-kind riding style to the world, and we will make sure that more and more people have a chance to see both. . . Kazu has been filming, winning contests and riding hard all year, and the results speak for themselves. At twenty-one years old, the accomplishments are piling up.
Yeah, we’ve been on a bit of an accessories trip lately. But accessories are important. Follow the jump for the rest. [click to continue…]
by The Editors on September 1, 2010
Not that we’ve been pondering our sock drawer lately, but Klen Laundry just let us know that they are rolling out their their second collection of bamboo-based socks. Yeah, bamboo.
Staying in line with the KLeN principles of utilizing eco friendly materials and giving back to the planet, all of the new socks are OEKO-Tex certified to insure their clean qualities. The company also practices environmental stewardship through its membership to 1% For the Planet as well as a partnership with the Arbor Day Foundation in which a tree is planted for every t-shirt sold.
Less stinky, green socks are good socks.
[click to continue…]
by The Editors on August 31, 2010
Billabong’s recent annual report has been out for a while now, but Jeff Harbaugh’s gotten back to it in his most recent Market Watch column. In it he covers what currency fluctuations can mean to global businesses, why new accounting rules make profit comparisons difficult, the China crisis, and Billabong’s retail strategy.
In talking about Billabong’s motivations for retail, they note how they’ve seen an increase in house brands by retailers in recent years, and how that ends up “…eroding the amount of space that’s available for premium brands…” and usually not working for the retailer. Though they don’t come right out and name it, I think they were thinking about PacSun, where their sales last year were down 40%. . . . There is also a general concern about the overall whole base. In Australia, they estimate their account base has declined 5% in the last 12 to 15 months. In addition, they have “quite a few” on credit hold and “may not continue selling to those accounts.”
Reading Jeff’s columns is a lot like having a favorite uncle go over the numbers with you. Click it and you’ll see.
[Link: Jeff Harbaugh’s Market Watch]
by The Editors on August 31, 2010
Ryan Kingman and the crew at Stance have announced their Artists Series of foot covering the work of skate artists like Russ Pope, Andy Howell, Steven Harrington, and Don Pendleton. As if any of us needed an excuse to buy new socks.
[Link: Stance]
by The Editors on August 25, 2010
West 49’s shareholders decided that being purchased by Billabong was a great idea, according to a story in the OC Business Journal.
Shareholders of West 49 voted nearly unanimously for Billabong’s $93 million buyout. The deal is set to close later this month or in early September. . . West 49, based near Toronto, runs a chain of 138 mall stores in Canada selling clothes inspired by skateboarding and snowboarding.
Apparently, 99.9 percent of the shareholders agreed. Wonder who the hold out was?
[Link: OC Business Journal]
by The Editors on August 24, 2010
Mossimo Giannulli has officially licensed Modern Amusement to Pacific Sunwear of California, according to a story on Sports One Source.
Mossimo establishd the Mossimo brand in 1987 and later licensed to Target Corp. The MODERN AMUSEMENT brand has been sold in the United States through retailers such as Nordstrom, Barney’s, Fred Segal and Bloomingdales, and internationally through accounts such as Selfridges and Harvey Nichols in the U.K. and Beams in Japan. . . .”I am so pleased to be working again with Pacific Sunwear which in many ways is like coming home,” said Giannulli. “PacSun was my first large account when I was building MOSSIMO, and to be able to take the model that I have had so much success with and build on that platform with Gary and his team is really exciting.”
When we read news like this we wonder how much money Mossimo really need. More apparently. Then again he probably does it for the love of the game.
[Link: Sports One Source]
Billabong is apparently refinancing to the tune of US$780 million, according to a story on ifrasia.com.
