by The Editors on January 26, 2009
We’ve heard all the rumors that everyone has been quoting lately, and we’re not sure we’d put our money on their lines, but Citi is saying that VF Corp could be a good stock to purchase and they’ve reiterating their “buy” raiting on the stock with a target of $74.
Citi analyst says, “VFC may be close to acquiring skate brand DC Shoes from Quiksilver (NYSE: ZQK), according to WWD reports on Friday. We think this could be a positive acquisition for four reasons:
1) The brand fits well within VFC’s newly created Action Sports Americas coalition, and we think there are opptys to create synergies w/ its Vans & Reef brands, 2) VFC will leverage its global sourcing and distribution to further grow the brand like previous acquisitions; 3) VFC is likely to get an attractive price as a result of market valuations and ZQK’s balance sheet; and 4) We think the deal would be slightly accretive, w/out impacting VFC’s dividend or our est. of ~$200M in repurchases for FY09.”
Since we don’t buy, sell, or own action sports stocks we’re going to sit this one out from the sidelines. VF is up $1.24 right now, but the whole market is up.
[Link: The Street Insider]
by The Editors on January 25, 2009
Special Note to Quiksilver employees: Tuesday January 27, 2009 is “bring a box to work” day.
We’re not saying you’ll need it, just that it might not be a bad idea to be prepared in case you need to take a few extra things home at the end of the day: family photos, favorite staplers, Roxy hula girls, Signed skateboard decks, and other personal effects.
Hopefully, no one will need their box, but it’s better to have a box and not need it than to need a box and. . .
by The Editors on January 24, 2009
Mad Dog Concepts is voluntarily recalling 25,000 pairs of Tony Hawk Boy’s Pajama Sets made in Cambodia and sold through the Kohl’s Department Store chain “due to the potential risk of burn injury to children,” according to the U.S. Cosumer Product Safety Commmission.
This sleepwear fails to meet the federal children’s sleepwear flammability standard, and poses a risk of burn injury to children. . . .Consumers should stop using the recalled pajamas immediately and contact the firm for instructions on obtaining a full refund.
See the kinds of things you have to start worrying about when you license your name to clothing manufacturers?
[Link: USCPSC via Ridgefield Press]
by The Editors on January 24, 2009
As if all the rumors we’re enough, Quiksilver was just cited by the US Department of Labor (along with six other stores) for having teenagers “operating machines that could hurt them” in The Gardens Mall in Palm Beach Gardens, according to a story in the Sun Sentinel.
In all, investigators found 50 teenagers whose jobs included working with trash compactors, paper balers and similar equipment — violations of the youth employment portion of the Fair Labor Standards Act, the Department of Labor said. Paper balers help bundle used cardboard boxes for disposal or recycling. The machinery is considered hazardous; the law bars those under 18 from operating it. . . The seven stores cited face civil penalties with a combined total of $53,271.
Government regulations are going to kill us all, aren’t they John Galt?
[Link: Sun Sentinel]
by The Editors on January 23, 2009
The San Diego Union-Tribune is holding no punches in its coverage of the January 2009 ASR Show.
In a story filled with words like “struggling” and “tough” and “worst” writer Jennifer Davies talked to many industry players and got nothing but bad news from nearly everyone.
“There is no immunity idol on this island,” said Doug Palladini, vice president of marketing at Vans, referring to the “Survivor” television show. “It can happen to anybody.”
Doug is always so poetic, isn’t he? ASR spokesperson Lora Bodmer on the other hand was alone with her glimmer of positivity. “We looked out over the show and said, ‘Hey, this isn’t so bad,’ ” she said.
And that’s kind of what we thought at first, but after walking the isles on day one and seeing that zombie “God, I hope I don’t get fired tomorrow” look in everyone’s eyes we’re not so sure anymore. While watching toilet seat tossing at the Vee-Haw Volcom booth we couldn’t help but think of them as a bunch of oblivious Hillbillies fiddling away on their out-of-tune banjos while flames licked at the cuffs of their overalls.
[Link: San Deigo Union-Tribune]
by The Editors on January 23, 2009
Billabong newest retail outpost is in the Singapore Changi Airport’s terminal three in partnership with Travel retailer Lagardère Services Asia Pacific, according to a story on DFNIonline.com. Jason Neely, Billabong’s retail ops manager had this to say:
Billabong is focused on building its presence in Asia and the opening in Singapore of the world’s first Billabong airport store illustrates the brand’s commitment to the region. This is a significant move for Billabong so it is comforting to be working with LSAP, one of the world’s leading airport retail operators. We feel the combination of a world leading retailer and a world leading brand will add an exciting new dimension to the Changi airport retail mix.”
People who can afford to fly must have money, right?
[Link: DFNIonline.com]
by The Editors on January 23, 2009
The Captain and Casey’s Chris Casey with the beautiful am babies award presenters. Diapers never looked so good.
We hung out for a little while after the show before “getting the hell out of there.” Photos from some after-show festivities including the Grind For Life High Ollie Contest and The Am Awards after the jump.
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by The Editors on January 22, 2009
We’re not saying that this is all of the January ASR Show, but it certainly is most of it. The space felt really small, but the mood was actually up considering the economy. It may not look like it, but there were quite a few people in the isles.
Follow the jump to view more photos from the floor the morning of day one.
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by The Editors on January 20, 2009
In an effort to cut costs, Quiksilver released info today that it was reducing the salaries of top executives by five percent, according to a story on Reuters.
The current reductions, effective Feb. 1, are in addition to earlier pay cuts implemented in February last year, the company said in a regulatory filing dated Jan. 20. . . .Annual base salaries for the chief financial officer and the chief administrative officer have gone down by 8 percent and 10 percent respectively.
Damn shame. CEO Bob McKnight’s salary is now down 16 percent meaning he’s only going to make $903,000 this year. Hopefully, he can make it through.
[Link: Reuters]
by The Editors on January 20, 2009
Dave Gatto is leaving VF Corporation as part of a reorganization according to a story in the News Record.
VF said its Outdoor Americas unit will include the North Face, JanSport and Eagle Creek brands. It will be overseen by Steve Rendle, 49, currently president of The North Face. . . . The second unit, action sports Americas, will include Vans and Reef brands. It will be led by current Vans president Stephen Murray, 48.
Wonder if this is in preparation for any footwear acquisitions.
[Link: News Record]
We’ve heard all the rumors that everyone has been quoting lately, and we’re not sure we’d put our money on their lines, but Citi is saying that VF Corp could be a good stock to purchase and they’ve reiterating their “buy” raiting on the stock with a target of $74.
