by The Editors on November 27, 2008
We mentioned this months ago, but Nixon is finally kicking off the official launch of their new line of headphones. The rigs are set to hit retail stores in December, just in time for Christmas. Chad couldn’t be happier.
Having the ability to re-think the product development from the ground up, how you want to use it and the way you use it has been a fun challenge,” states Nixon’s Marketing Director, Chad DiNenna. “The team’s involvement all the way down to the audio sampling process, matching the music they listen to most with how this product will perform, elevates the product for everyone. I’m excited for people to discover the product.”
The headphones, which will retail for between $40-$200, will be going head-to-head with Skullcandy. And from the photos we’re giving Nixon the win on packaging already.
[Link: Nixon Happenings]
by The Editors on November 26, 2008
Australia’s former Brother Neilsen retail chain apparently owes Billabong International AUS$674,000 and the company wants to get paid. That’s apparently why Billabong’s subsidiary GSM Operations is taking them to court, according to Goldcoast.com.au.
GSM Operations has filed a statement of claim in the Queensland Supreme Court seeking damages from Paul Neilsen and Ahmed El Safty, along with an associate of Mr El Safty, John Hassan. . . .The debt is alleged to have been accrued by Brothers Neilsen between November last year and May this year.
What else can manufacturers do if a retailer has a going-out-of-business fire sale on product that they haven’t even paid for.
[Link: Goldcoast.com.au]
by The Editors on November 25, 2008
The Extreme Group just bought up the UK’s online action sports retailer UrbanSurfer.co.uk adding a decidedly stylish well-designed property to their already turbo extreme business.
Al Gosling, chief executive officer for the Extreme Group, said UrbanSufer.co.uk is another win for Extreme and adds to the extensive portfolio of products and experiences the company already offers consumers. . . “We are continually looking for ways we can further enhance and spread the core messages of Extreme and this website was the perfect fit. At Extreme we live by the philosophy of passion, vision, freedom and irreverence; this is radiated through everything we do, and now UrbanSurfer will be included in that mix,” he said.
Who said the word “extreme” would kill an action sports business?
[Link: Fashion United]
by The Editors on November 24, 2008
Ever since the Bush family marshaled in the re-militarization of America, we’ve seen Oakley product here and there on soldiers around the world. But we never knew how deeply the company went in building products for men and women at war.
At Oakley’s official military and goverment sales website US Standard Issue they have pretty much every accessory needed for the stylish, well-dressed freedom enforcer.
Traveling the world to kill people has never looked so cool.
[Link: US Standard Issue]
by The Editors on November 22, 2008
Pharrell Williams is 35 years old and doesn’t have as much time to skate as he’d like, but Skateboard P. still sites skateboarding as his original influence, according to a story in the Guardian.
The first sport I got into – and the one that has had most impact on my life – is skateboarding. Most people think skateboarding is for some kid with blond hair from suburbia. But I remember when I was 12 or 13, growing up in Virginia Beach, everybody, black and white, was doing it. Skating taught me what it meant to be cool, to have credibility. I had it. I got so mad with it that I had a half-pipe put in my house. I had the look – the baggy jeans, the Vans. I still wear Vans shoes. I rap about skateboarding. My nickname is Skateboard P.
We’d still wear Vans too if our company sold shoes that looked like Ice Cream’s.
[Link: Guardian.co.uk]
by The Editors on November 22, 2008
According to a story on News.com.au Quiksilver has “shed Australia-wide surfing sponsorships to tighten its belt.”
It has ended its sponsorship of state junior championships in Australia and Quiksilver’s female surfwear firm Roxy also has dumped its World Qualifying Series tournament in Victoria.
The Quiksilver Pro at Snapper is still on, however. Things are bad, but they’re not that bad, yet.
[Link: News.com.au]
by The Editors on November 21, 2008
No, there does not appear to be any irony involved with Nixon’s latest run of “custom collection” watches. These watches were created to help Barneys New York celebrate 50 years of the dollar peace sign:
The collection is comprised of four unique and highly customized versions all individually numbered, all 300 meter water resistant stainless steel cases with either a six-hand Japanese movement with 1/10th second subdial chrono and date or a Swiss three-hand movement with tide subdial. These coveted pieces will range between $500 and $8,800 depending on material integration.
Come to think of it, only a barney would spend $8k on a piece of wrist jewelry this holiday season. Luckily, there are still mobs of them in NYC.
[Link: Nixon Now]
by The Editors on November 21, 2008
On the conference call earlier this week analysts asked several times what the hold up was with the sale of PacSun’s Anaheim, California distribution center and it was obvious that many were worried that something had gone south on the deal. CFO Michael Henry assured everyone that the deal was underway. And he was telling the truth. Today they closed the sale.
The Company has received net cash proceeds of $24.5 million from the transaction. The Company expects to record an after-tax gain of approximately $0.10 per diluted share from the transaction in the fourth quarter of 2008.
This deal not falling through should help assauge the sting that Christmas and Q4 bring.
[Link: MarketWatch]
by The Editors on November 20, 2008
Some people like to give Zumiez grief for being “mall” stores, but when you compare their conference calls with those of some of their competitors what comes through is a surprisingly core attitude about the stores, the brands, and the customers. After the prepared statements Zumiez CEO Rick Brooks and CFO Trevor Lang answered questions and here are some of the highlights
- October had the worst monthly comps in the company’s history.
- Footwear was the strongest segment, apparel was the worst, and skate hard goods are seeing “tough comps.”
- Third quarter gross margins were down 200 basis points driven almost entirely by apparel since the June when everything got promotional.
- New stores (07-08) have been performing at about 65 percent as compared to established stores.
- Company is targeting opening 58 new stores, only 20 percent of them are in the “housing states” and no new stores in Nevada or Florida.
- Snow goods are off to a slow start. Rick Brooks said “We are concerned about the market for snow hardgoods. We’re working very closely with our suppliers. We’re also going to be more aggressive from the price perspective and trying to move the product out the door.
- The company has lowered its costs across the board and stock and performance based incentives are a large part of that.
- Customers continue to drive the brand selection and the business. “Again, our approach is to do what our customers tell us to do,” Brooks said. “The customers are who drive that for us. If the custermers demand more then we will buy more.”
- Zumiez remains dedicated to its small vendors. “In most cases we are our small vendors biggest customers,” Brooks said. “If we have cash then we are a big driver of their liquidity.”
- Zumiez is brand diverse so any problems at some of the larger action sports apparel companies won’t have much affect on them. “Our largest single brand only represents 7 percent of our sales,” Lang said “But we are not so confined to a certain vendor that if one were to go away it would not hurt us.”
- One of Zumiez goals is to get clean on inventory by the end of the year and they feel they have been conservative enough this year to do that.
- The company is still investing in their IT organization and in their ecommerce business because that is an area in which Zumiez continues to see growth.
- There are plans to get very promotional in Q4 however they are not going to simply put everything on sale. “Our promotions are based on a very fine category brand analysis and very focused on how we attach promotions.
The most impressive thing about all of this is the way that Brooks and Lang appear to be all over the current market conditions and appear to have done everything they could to prepare for what everyone knows is going to be a bad quarter. The thing that keeps us optimistic on Zumiez is the fact that they’re still running with absolutely no debt.
by The Editors on November 20, 2008
Action sports mall retailer Zumiez announced their Q3 results today and they weren’t as bad as they could have been.
Total net sales for the third quarter (13 weeks) ended November 1, 2008 increased by 7.9% to $112.2 million from $104.0 million reported in the third quarter ended November 3, 2007 (13 weeks). The company posted net income for the quarter of $6.8 million or $0.23 per diluted share versus $8.1 million or $0.28 per diluted share in the third quarter of the prior fiscal year. Comparable store sales decreased 5.8% for the third quarter of fiscal 2008 compared to a 13.2% increase in the third quarter of fiscal 2007.
According to CEO Rick Brooks, however, “October was the worst montly comp in the company’s history.” The economically hard hit “housing states” are where Zumiez have half their stores and while skate hardgood sales were strong in the first six month, they fell off in the third quarter and the clothing part of the business was hit extremely hard.
Zumiez has seen a slow start on the snow product front. But they say they are committed to finish off the year “clean” on inventory by getting all promotional in Q4 a.k.a. putting things on sale.
[Link: MarketWatch]
We mentioned this months ago, but Nixon is finally kicking off the official launch of their new line of headphones. The rigs are set to hit retail stores in December, just in time for Christmas. Chad couldn’t be happier.
