by The Editors on August 21, 2009
Zumiez didn’t really have the greatest news to report yesterday during their Q2 conference call (click here for a complete transcript). Their same store sales were down 18.8 percent vs. last year, total sales fell $6.5 million, and they operated on a loss of $3 million ($.10 a share) for the quarter (down from a $2.7 profit a year ago). But, it wasn’t as bad as analysts thought, according to a story in Puget Sound Business Journal.
Over at Pacific Sunwear things were a little different. Their Q2 same store sales dropped 24 percent and they had a net loss of $14.2 million ($.22 a share) for the quarter.
Discussions on Twitter yesterday were asking why there was such a difference between two retail chains that basically sell the same product in the same malls. To us the answer is obvious. From the sales people at the mall all the way up to the executives running the company, Zumiez knows that first and foremost they are selling a lifestyle. And they know that in order to sell the style they need to be connected to the life. This shows in Zumiez promotions, branding, and especially in their employees. PacSun, on the other hand, appears to be simply trying to sell clothing.
This is why, more than anything else, we believe Zumiez is doing better the PacSun in what is a pretty dismal market. And with Zumiez stock up 17 percent this morning and PacSun is down 12 percent, it would appear that the street agrees.
[Link: Puget Sound Business Journal, Forbes, and Seeking Alpha]
by The Editors on August 20, 2009
Today the two big action sports fashion mall retailers are going to kick down their quarterly earnings and make their pitches to analysts who have an inordinate amount of control over the companies’ stock prices.
Pac Sun will go first at 1:30 PST followed by Zumeiz at 2 PM. Both will likely be reporting more dismal news from the shopping centers of North America, but we never know. Back to school could be coming up hard.
Click the links below to listen in.
[Link: PacSun Conference Call and Zumiez Conferenc Call]
by The Editors on August 17, 2009
Big hat company New Era Cap Co. Inc has reportedly purchased the Miami based apparel manufcaturer 5th & Ocean according to a story in the Buffalo Business First.
5th & Ocean, a privately held firm, is a minority-certified manufacturer of licensed team sports and private-label items ranging from fleeces and tank tops to hooded sweatshirts and athletic shorts. Its client list includes Major League Baseball, Victoria’s Secret/PINK, Disney Theme Parks, the Dallas Cowboys and K2 Sports. . . “To ensure the long-term growth of New Era in this changing economic landscape, we need to look for strategic ways to diversify our business,” said Chris Koch, New Era chief executive officer. “This acquisition of 5th & Ocean continues to move us forward with our strategy to become a well-rounded lifestyle brand. This was an opportunity we simply could not pass up.”
Big hats, big wallet.
[Link: Buffalo Business First]
by The Editors on August 17, 2009
by The Editors on August 16, 2009
We haven’t really wanted a Nixon Watch in quite some time. . . the Ceramic 42-20 changes that mood up a little bit.
[Link: Nixon]
by The Editors on August 13, 2009
We always thought that Swell.com was missing out on a large piece of the action sports fashion business by not setting up white-label sites that would allow smaller brands to easily sell direct by jumping on Swell.com’s quality distribution system.
They still haven’t done that, but with Coreshops by Swell they are branching out into an equally cool and potentially large side business, according to an interview with Swell.com CEO Stacy Clark on Shop-Eat-Surf.com.
CoreShops by Swell is doing two things: one, it is aggregating the branded apparel from these shops and offering it for sale on Swell.com. (Want a Whalebone Surf Shop T-shirt from Nags Head, NC? Click here); and two, it pulls together an easy to search listing of core shops from around the US that makes it easy for anyone to find a nearby core shop, event, or promotion.
This works out well for shops and for Swell.com according to Clark.
Yes, it will generate revenue for the shops as well as Swell. What we are most excited about is that it’s a brand differentiator that also helps strengthen a very important industry distribution channel that we do not compete in. Oversaturation by leading industry brands has forced us to think differently about how we partner to do business and create a unique customer experience online.
Truth is, there is really nothing more core in “surf fashion” than T-shirts from local surf shops and shapers. For the rest of the story and the press release, follow the link.
[Link: Shop-Eat-Surf.com]
by The Editors on August 12, 2009
There is nothing that reduces marketing down to its purest level than selling a virtual, infinitely reproducible product. And that’s exactly what Quiksilver and Roxy are doing with their new deal with the X Box Live’s Avatar Marketplace. Users of X Box Live will be able to dress their online personifications with virtual clothing paid for with real money.
Now those people can buy and download special clothing and props for their Little Computer People. For 80 or 160 MS Points — that’s $1 or $2 in real money — you can buy your fake self a shirt by Adidas or sweater by Quiksilver.
While some would argue that the low cost of manufacturing in China has already turned the fashion business into a “virtual economy” there still is nothing quite as efficient as selling products made out of bits, not atoms.
[Link: IndyStar.com and Transworld Business]
by The Editors on August 11, 2009
We always thought Altamont was a great name for a clothing company. Not because of the huge 1969 concert where a Hell’s Angel stabbed and killed a gun-toting meth head while the Rolling Stones played on, but because it is a nice word. Altamont. It just sounds good.
Now, Andrew Reynolds and and crew are going deeper into Altamont “the event” with a collaboration with photographer Bill Owens. His photos captured the concert at Altamont like no one else and now those same photos are on Altamont clothing. We’re not really down with the whole summer of love hippie thing, nor do we want any of them on our t-shirts, but the photos are amazing works of art.
[Link: Altamont via Cool Hunting]
by The Editors on August 11, 2009
Dave Gatto, the former CEO of Reef has a new gig protecting all things technical. Yesterday, it was announced that he is the new CEO of bag and electronic’s covering company incase.
“With his proven background and experience in successfully growing lifestyle brands, Dave is the ideal complement to the core competencies of the company’s founders and existing management team,” stated Wahlstrom. “I am confident that Dave’s inspiring approach to business and life, proven skill set and leadership will bring us to our vision of being a globally recognized brand that represents design simplicity and innovation at the convergence of lifestyle and technology.”
For the entire press release, follow the jump.
[click to continue…]
by The Editors on August 7, 2009
Super model Erin Wasson is planning a large show in Bryant Park during Mercedes-Benz Fashion Week. On September 11, 2009 she’ll be showing off her new RVCA line for 1,110 guests at 8 PM, according to a post on Fashion Week Dispatch.
Wasson will be utilizing the enormous space to its full potential. She’s planning a multi-media installation and a secret live band performance to highlight RCVA’s Spring effort. “It’s really a thrill, to be able to take a venue everyone in the fashion industry knows so well, and bring in new personalities and a new vibe that spin the experience in a different direction,” added Wasson. “I mean, it’s almost too predictable to do something ‘cool’ in, like, an abandoned warehouse. Cool can happen anywhere. It’s a state of mind. That’s the essence of the Erin Wasson x RVCA brand, and there’s no reason not to follow that logic onto the runway.”
That’s pretty prime time for such a “small” company.
[Link: Fashion Week Dispatch via New York Magazine]
Zumiez didn’t really have the greatest news to report yesterday during their Q2 conference call (click here for a complete transcript). Their same store sales were down 18.8 percent vs. last year, total sales fell $6.5 million, and they operated on a loss of $3 million ($.10 a share) for the quarter (down from a $2.7 profit a year ago). But, it wasn’t as bad as analysts thought, according to a story in Puget Sound Business Journal.
