by The Editors on September 6, 2010
First Billabong reported that things in the branded boardsports fashion market weren’t going well and now Quiksilver adds in that things are going to get even worse, according to a story in the Sydney Morning Herald.
“We expect fourth quarter . . . revenues to be down 15 per cent after accounting for a weaker translation rate on the euro and the marked decline in consumer demand in the Asia-Pacific region,” Mr Scirocco said. . . Quiksilver posted a 12 per cent fall in third-quarter revenue to $US441 million ($481 million). Revenue in the Americas – dominated by a recession and high unemployment – was down 9 per cent but there was a 10 per cent drop in the Asia-Pacific region primarily due to market weakness in Australia. . .
Looks like Q1 2011 is going to be pretty bad. Get ready.
[Link: Sydney Morning Herald]
by The Editors on September 6, 2010
Oakley, a company that has historically tried to out maneauver Olympic sponsorship rules, has apparently nutted up and become the official eyewear sponsor the Team USA, according to a Tripp Mickel (behind the paywall) story on Sports Business Journal.
Terms of the multiyear agreement were not available, but sources said it offers the USOC both cash and value-in-kind. . .
Maybe someday Street & Smith will give us access to the whole story.
[Link: Sports Business Journal]
by The Editors on September 6, 2010
Quiksilver announced a double-plus good deal on the $150 million credit line they’ve been running, according to a story in Businessweek. The company got a new, lower interest rate and extended the credit line out for four years.
The new rate is 1.5 percentage points below its previous credit line arranged by Bank of America Corp.’s Merrill Lynch and General Electric Co.’s GE Capital. The credit line is now set to expire in August 2014.
That’s good news for the company that is currently carrying $700 million in debt.
[Link: BusinessWeek]
by The Editors on September 5, 2010
Rudd Davis, founder of action sports advertising network BNQT and former JDK worker, has apparently been tapped to head up USA Today’s business development and digital development and this has caused Poytner Online media columnist Rick Edmonds to wonder what it all means in his Biz Blog:
How does it happen that two young execs from USA Today’s BNQT action sports site are now in charge of all business development and digital development? Does success in covering dirt-biking and skateboarding translate to building a broad digital domain?
Well, Rick. Could it be that after trying (and failing) to run a media business with the usual subjects they’ve finally realized that those wacky kids building that action sports business may actually understand how media works in a digital space? This move may be one of the first good decisions Gannett has made in years. Congrats, Rudd.
[Link: Poynter.org]
by The Editors on September 2, 2010
Zumiez settled a California lawsuit last year over meal breaks and overtime pay and settling the suit has actually cost the company $2.1 million rather than the $1.3 million originally reported, according to a story in the Puget Sound Business Journal.
The Everett-based youth apparel retailer, in a Securities and Exchange Commission filing, said “the lawsuit is similar to numerous lawsuits filed against retailers and others with operations in California. Although the company believes that the allegations in the lawsuit lack merit, it has agreed to a mediator’s proposal to settle the claims in the lawsuit to avoid significant legal fees, other expenses and management time that would have to be devoted to protracted litigation.”
It’s so nice when companies realize that it’s cheaper to pay their employees than to pay lawyers. Guess that’s what lawsuits are for.
[Link: Puget Sound Business Journal]
by The Editors on August 31, 2010
Not really sure what’s been going on at the Surf Industry Manufacturers’ Association lately, but it seems their Boot Camps have been oddly relevant. On September 22, 2010 SIMA will tackle “New Media.”
The first panel discussion of the morning, Media vs. New Media: Tracking the Transition, will showcase a discussion with the surf industry’s leading media experts on the transition to new media, its benefits and advantages, and specific learnings from the interactive endeavors of these media outlets. Moderated by Doug Palladini, the panelists will include: Rob Campbell / Editorial Director, TransWorld Media; Norb Garrett / Senior Vice President, Group Publisher, ASG; Ross Garrett / Director of Operations and Development, The Surfer’s Journal; Gene Pao / Vice President of New Media and International Development, FUEL TV; and Jonno Wells / CEO, Surfline.
It’s always entertaining to see what corporate executives from the established action media have to say about “new” media, isn’t it?
Follow the jump for the rest of the scheduled topics, or click here to register. [click to continue…]
by The Editors on August 31, 2010
Billabong’s recent annual report has been out for a while now, but Jeff Harbaugh’s gotten back to it in his most recent Market Watch column. In it he covers what currency fluctuations can mean to global businesses, why new accounting rules make profit comparisons difficult, the China crisis, and Billabong’s retail strategy.
In talking about Billabong’s motivations for retail, they note how they’ve seen an increase in house brands by retailers in recent years, and how that ends up “…eroding the amount of space that’s available for premium brands…” and usually not working for the retailer. Though they don’t come right out and name it, I think they were thinking about PacSun, where their sales last year were down 40%. . . . There is also a general concern about the overall whole base. In Australia, they estimate their account base has declined 5% in the last 12 to 15 months. In addition, they have “quite a few” on credit hold and “may not continue selling to those accounts.”
Reading Jeff’s columns is a lot like having a favorite uncle go over the numbers with you. Click it and you’ll see.
[Link: Jeff Harbaugh’s Market Watch]
by The Editors on August 25, 2010
We’ve always wondered how mall retailers stay in business. Apparently, they just keep borrowing more money. Pac Sun just announced that on August 20, 2010 they borrowed $29.8 million more, according to a Form 8-K filed with the SEC.
On August 20, 2010, Pacific Sunwear of California, Inc. (the “Company”), through its wholly-owned subsidiaries, Miraloma Borrower Corporation, a Delaware corporation (“Miraloma”), and Pacific Sunwear Stores Corp., a California corporation (“PacSun Stores”), executed two promissory notes pursuant to which borrowings in an aggregate amount of $29.8 million from American National Insurance Company (“Anico”) were incurred.
Because no one has more money than the insurance companies. . . and this will probably help get Pac Sun around the corner, right?
[Link: SEC]
by The Editors on August 25, 2010
For the past five years (starting in June 2005) Skate Park of Tampa’s tech nerd Rob Meronek has been logging skateboarding magazine coverage for the SPoT’s Skater Database. In this time he has kept a record of the ad and editorial pages for Skateboarder Magazine, The Skateboard Mag, Slap, Thrasher (graph above right), and Transworld Skateboarding.
Today he released all his data in a story titled: A Nerdy Analysis of Sketchy Skateboard Industry Paper Trails. Here is how it works:
For a page to get logged, it simply has to have a skater. Even if they’re just throwing gang symbols in front of their rims, as long as it has a skater it in, the page is logged as either editorial or advertising along with who the photographer is. I put all this crazy data I’ve collected since 2005 into a spreadsheet and out popped these Captain Corporate ass charts.
While only counting ads with skaters in them skews the total ad pages numbers of the magazines a little, the data does give a great snap shot of what is going on in skateboard print advertising. Look over the data and draw your own conclusions.
[Link: Skate Park of Tampa]
by The Editors on August 25, 2010
West 49’s shareholders decided that being purchased by Billabong was a great idea, according to a story in the OC Business Journal.
Shareholders of West 49 voted nearly unanimously for Billabong’s $93 million buyout. The deal is set to close later this month or in early September. . . West 49, based near Toronto, runs a chain of 138 mall stores in Canada selling clothes inspired by skateboarding and snowboarding.
Apparently, 99.9 percent of the shareholders agreed. Wonder who the hold out was?
[Link: OC Business Journal]
First Billabong reported that things in the branded boardsports fashion market weren’t going well and now Quiksilver adds in that things are going to get even worse, according to a story in the Sydney Morning Herald.
