Market Watch’s Jeff Harbaugh was wondering what happened to the Skullcandy IPO and did some nosing around. He discovered that on April 30, 2011 Skullcandy filed a revised form S-1 with the SEC. In his latest column he looks into exactly what changed and what it might mean to the company and it’s potential public offering. He says:
Skullcandy is counting on the success of its IPO to reduce its leverage and give it the working capital it needs to execute on its plan. Shareholders and executives have taken a bunch of cash out of the company in the fourth quarter, resulting in a big loss. They were entitled to do that under existing agreements, but how does it look to a potential stock purchaser? Those potential investors also see a company whose 2008 net income of $13 million fell to $3.5 million in 2009 even as sales grew 47% to $118 million. Now, on sales of $160 million, there’s a loss of almost $10 million.
For Harbaugh’s conclusions (and some interesting reading), click the link.
Skullcandy is expanding its reach in the headphone space by picking up the San Francisco-based video gaming electronics company Astro Gaming for $10.8 million, according to a story in the Wall Street Journal.
Astro Gaming was backed by investors including Triangle Peak Partners LP and Fayez Sarofim & Co. . . Skullcandy also disclosed in the new filing that it generated a net loss of $9.7 million last year, compared with a $13.5 million profit the year prior. Though its revenue rose 35.7% to $160.6 million thanks to increased sales to large national retailers, a one-time charge for management incentive bonuses took out a $17.5 million chunk of its profit.
Good thing Skullcandy is going public. Looks like that money is going to come in pretty handy.
French fashion giant PPR, the parent company of brands like Gucci, Bottega Veneta, Yves Saint Laurent, and Puma, has announced its intention to purchase 100 percent of the shares of Volcom for $24.50 a share “for a total equity value of $607.5 million and an enterprise value of $516.1 million.”
Not surprising the Volcom Board of Directors “has unanimously recommended” that shareholders take the money and run. This explains so much. . .
“PPR is the perfect partner to help take the Volcom and Electric brands to the next level of success,” says Volcom Chairman and CEO Richard Woolcott. “For more than 20 years we have worked to inspire a movement that provokes freedom of thought and expression, and celebrated this spirit through our athletes, worldwide events, rock tours, feature films and, of course, our apparel. PPR, with its expertise gained through both Puma and its Luxury Group, could bring international market knowledge, sourcing capabilities and other operational expertise in areas such as product development and retailing to help the company grow Volcom globally, while preserving the elements that make the brands authentic.”
That means Wooly’s shares alone are worth approximately $61.5 million. How’s that for an exit strategy? Follow the jump for the official details on how Volcom will become a French fashion brand. [click to continue…]
The Board of Directors for SnowSports Industries America (SIA) announced today that the SIA Snow Show will continue to be held in the late January/early February timeframe. Given the many factors and constituencies SIA’s Board had to consider, the goal was to provide Show dates that would be beneficial to all aspects of the industry. . . “At the end of the day, the voice of the retail community and our sales reps was heard loud and clear,” said Tim Petrick, SIA’s Chairman. “The earlier dates were not going to work for the U.S. retail community, so we needed to find a solution that worked for our customers.”
And what a solution it was. Keep the dates the same. Just think of all the meetings that were required to do absolutely nothing about the SIA dates. For the rest of the details, follow the jump. [click to continue…]
Few have been more mired in the skateboarding industry than Alien Workshop founder Chris Carter. Last night (April 26, 2011) at the IASC Skateboarding SummitShop-Eat-Surf.com’s Tiffany Montgomery interviewed Chris. It was only the second interview he has ever given. Chris tells the whole story of his start in skateboarding, founding Alien Workshop, selling the business to Burton, and how he’s working to keep the brand relevant in a changing market.
It is long (over an hour) but if you care about skateboarding you should watch it.
[Editors’ Note: it only took us eight minutes to realize the table and chairs were ruining the shot. It gets better at the nine minute mark. Sorry.]
Fuel TV announced today that its founding father CJ Olivares has chosen to step down to “pursue opportunities more closely related to the action sports genre to which he remains passionate.”
“CJ has worked tirelessly to make FUEL TV live up to its original mission of providing unique, male-oriented sports and entertainment programming with a distinctive voice,” said FOX Sports Media Group Chairman David Hill. “We thank him for his creativity and dedication, and appreciate his commitment to the action sports world in which he has unparalleled expertise. He will be missed.”
Olivares was the action sports heart and soul of the cable channel.
“It has been my honor and privilege to lead a team of dedicated and talented professionals at FUEL TV these last eight years,” offered Olivares. “As the network continues to evolve, I realize that my passion remains the action sports that were FUEL TV’s core and I now have the opportunity to explore the emerging possibilities in the expanding action-sports entertainment landscape.”
Kind of makes since now that Fuel is reportedly pulling away from some of the more core content and getting more into MMA and motorsports. Follow the jump for the official word from Fox. [click to continue…]
Former Volcom Director of Sales Donavon Dartez has jumped over to the Quiksilver mothership as the new senior vice president of sales, Americas for DC Shoes, according to a post on Footwear Business Update.
Prior sales positions in the apparel and accessories industry include Fossil and Stussy. Overall, Donavon joins DC with over 15 years of experience in sales in the action sports apparel industry. . . In his new position, Dartez will report directly to DC America’s President, Anton Nistl at the company’s Huntington Beach headquarters.
And to think, we used to know people who worked at DC. . .wait, does Ken Block still work there? Or is he just a sponsored Gymkhanaer?
For the next two days, online shoppers can get product from Matix and Hurley at pretty much wholesales prices thanks to Jackthreads.com.
The “members-only, online shopping club that curates top-tier street, skate, surf and contemporary men’s fashion brands” is helping some major labels blow out core shops by moving some of their fashion failures at rock bottom prices. Nice, huh?
As one of our readers said via email:
“The strategy of big brands selling great product at wholesale to the public is the demise of the specialty retailer. Without the positive health of the specialty retailer (aka local surf shop) the brands will not have an authentic platform to tell their story.”
Guess the majors will have to rely on their “company stores” to get them through. Welcome to the aughts.
Market Watch’s Jeff Harbaugh was wondering what happened to the Skullcandy IPO and did some nosing around. He discovered that on April 30, 2011 Skullcandy filed a revised form S-1 with the SEC. In his latest column he looks into exactly what changed and what it might mean to the company and it’s potential public offering. He says:
