by The Editors on June 21, 2012
Today (in Australia) Billabong’s new CEO Launa Inman outlined the company’s short term plans during a conference call. In the call she reportedly spelled out plans for “raising more capital, downgrading earnings expectations, and undertaking a top to bottom review of all Billabong operations with the goals of reducing expenses, identifying efficiencies and improving the competitive positioning,” according to a story on Jeff Harbaugh’s Market Watch.
They want to raise 225 million Australian dollars (about $229 million U.S. dollars) by selling shares to existing shareholders at $1.02 for each new share, a 44% discount from the 1.83 Australian dollar share price before the trading halt. The offer is fully underwritten by Goldman Sachs and Deutsche Bank, which means that Billabong will get the money.
But not everyone is stoked on this stock offering, according to a story in the Sydney Morning Herald:
City Index analyst Peter Esho said the capital raising was a huge slap in the face to shareholders, particularly after Billabong rejected a generous offer from private equity giant TPG Capital four months ago. . . ‘‘Knocking back private equity’s $3.30-a-share takeover offer and then raising equity at $1.02 will no doubt see a lot of criticism from shareholders and rightly so,’’ he said. . . “You either participate or get massively diluted – a huge slap in the face again for shareholders,” he said.
The money will come in handy, it’s the “deep dive” into all of Billabong’s operations that should have some of the company’s acquired brands feeling cautious. We’re guessing there could be a few “efficiencies realized” that may not be all that popular with some Billabong employees.
[Link: Harbaugh’s Market Watch and Sydney Morning Herald]
by The Editors on June 19, 2012
Bonfire, Salomon, and Nakita have a new national sales manager and his name is Mike Lawson, formerly of Emerica and Altamont. He’ll be working out of the Amer Sports Portland Design Center.
During his time at Sole Tech Lawson was instrumental in increasing sales, brand awareness, and developing key brand strategies. . . Brad Steward, VP of A2 brands says, “Mike is a huge add-in to our team. He’s a solid business leader and has a clear understanding of the brands, sport, and culture. I am very pleased to have him on board.”
Congrats Mr. Lawson! For the official word, follow the jump. [click to continue…]
by The Editors on June 19, 2012
9five Eyewear kicks down a little look at Summer 2012 with Tommy Sandoval, Karl Watson, Derrick Wilson, and oh yeah, Rosa Acosta,
[Link: 9five]
by The Editors on June 18, 2012
We’ve always been impressed by the way the crew at Agenda has been able to pull together great graphics, logos, etc. . . for all their shows, but we never really looked past that too much. Apparently, real artists are at work behinds the scenes. Dabs & Myla designed the poster for the Agenda Show Long Beach. Here’s their story. (Be warned, it’s a love story.)
[Link: Agenda Show]
by The Editors on June 15, 2012
The OC Weeky’s Andrew Asch profiles Black Flys co-founder Jack Martinez and the company that he is hoping to conjure up from the ashes. Here’s a little piece:
If anything can put Black Flys back on top in OC, it’s Martinez, with his talent for provocation. Under his direction, the brand was about forcing extremes and having a laugh at convention. In a recent interview at his office, located in one of Irvine’s countless, anonymous office parks, Martinez says he believes the eyewear market is stale and that the industry—dominated by retailers such as Hot Topic and Tilly’s—is ready for a more colorful, wild offering from the likes of Black Flys. But, he concedes, a comeback is far from guaranteed. . . “Every day, we ask that question,” says Martinez, who now sports a shaved head and gold tooth. “Has the world changed? Can we come back?”
Click the link for the rest of this comprehensive story.
[Link: OC Weekly]
by The Editors on June 8, 2012
How nice would it be to run a business where losing $5.1 million in a quarter is good news? For Quiksilver a $5.1 million loss is much better than last year’s $81.7 million Q2 loss, according to a story in Businessweek.
The surf-inspired clothing and gear company posted a loss of $5.1 million, or 3 cents per share, for the quarter that ended April 30. That is down from $81.7 million, or 51 cents per share, in the same quarter last year, when the company incurred a $74.1 million non-cash goodwill impairment charge on its business in Australia and Japan.
Quiksilver’s stock was up 25 cents to $2.69. For a complete transcript of the most recent conference call, click here.
[Link: Businessweek and Seeking Alpha]
by The Editors on June 8, 2012
The Florence Brothers (2 John, Nathan, and Ivan) and Nyjah Huston have joined the Stance socks program.
“We’re humbled and proud that these guys have decided to be a part of our family. John John and Nyjah seemingly mirror each other in their young competition dominance and credibility as well rounded individuals that truly love what they do.” stated VP of Marketing, Ryan Kingman.
Foot covers are good. Follow the jump for the official word. [click to continue…]
by The Editors on June 6, 2012
by The Editors on June 6, 2012
The CEO position at Nike’s surf brand Hurley has been in seemingly constant rotation since the the footwear giant bought the Costa Mesa, California based company in February of 2002.
So news on Monday, June 4, 2012 that company founder Bob Hurley (pictured right with his grandson Ashton at the 2012 Nike Lowers Pro) was moving back into the “interim CEO” roll was really not all that surprising seeing that Hurley CEO Michael Egeck announced that he was moving to lead middle-aged wannabe outdoorsman clothier Eddie Bauer.
For those keeping track, Hurley has now had four CEOs in the past 16 months. Here’s how it has all gone down: Bob Hurley was CEO until October 2007 when he was replaced by Nike insider Roger Wyett. Wyett then handed the position off to former Dockers President Jim Calhoun in April of 2011 only to move the man over to Converse a month later. Wyett served as interim CEO until September 2011 when former VF Corp. veteran Michael Egeck was hired for the CEO position. Egeck lasted approximately eight months before exiting. Now, Hurley is back to where it started with CEOs.
Three things come to mind. One, from our perspective there is no one better equipped to guide the direction of Hurley than Bob. Two, it must be hell trying to be CEO of the Hurley brand in Bob’s shadow, especially for the kind of business jocks who love being the boss. And finally three, how long will Nike continue to juggle CEO’s before they just drop the whole thing? Guess we’ll all know soon enough.
[Link: Portland Business Journal and BusinessWeek]
by The Editors on June 5, 2012
Pacific Sunwear CEO Gary Schoenfeld isn’t backing down on his company’s stock. In fact, beginning May 29, 2012 he bought 150,000 more shares “on behalf of his children,” according to a story in the Orange County Business Journal.
The shares—bought starting May 29—were priced between $1.45 and $1.55 each.
All together Schoenfeld and other company directors bought up 300,000 shares and pushed the stock up 10 percent in trading on Monday, June 4, 2012. It’s up to $1.71 now. Just think if they bought a couple million shares? Kids might start actually start shopping at PacSun again. Or maybe that isn’t the way to stock price is tied in. . .
[Link: Orange County Business Journal]
Today (in Australia) Billabong’s new CEO Launa Inman outlined the company’s short term plans during a conference call. In the call she reportedly spelled out plans for “raising more capital, downgrading earnings expectations, and undertaking a top to bottom review of all Billabong operations with the goals of reducing expenses, identifying efficiencies and improving the competitive positioning,” according to a story on Jeff Harbaugh’s Market Watch.
