by The Editors on March 11, 2010
It could have been worse: Zumiez total sales were down .3 percent in 2009 vs. 2008, but their sale store comps were down 10 percent according to information released today.
“The year ended stronger than expected from both a sales and earnings standpoint,” commented Rick Brooks, Chief Executive Officer of Zumiez. “Our unique merchandise assortments and compelling promotional packages resonated with consumers, driving an increase in units sold for the fourth quarter, and at the same time, our efforts to build in higher IMU’s coupled with well managed inventory resulted in a significant improvement in product margins. While we are not pleased with our annual performance, we are encouraged that the steps we took to reverse the negative trends from early in the year led to improved results during the back half of 2009. We ended fiscal 2009 well capitalized, with more than $108 million in cash and current marketable securities, and will continue to invest in our business to build on our recent momentum and expand our position as the leading retail destination for the actions sports lifestyle.”
Items of interest we gleaned from today’s call:
- Private label accounts for 15.7 percent of sales and is growing.
- There are some price points where the brands “do not want to play” and that’s where private label comes in.
- Snow hardgoods less than 3 percent of sales, but “it’s very important.”
- Juniors 11 percent of our sales.
- Most exciting for Zumeiz is Mens and accessories which make up about 60 percent of our sales.
- Had great success selling package deals thanks to sales teams.
- Zumiez is now more brand unique than they have ever been.
- Four new brands entered the Zumiez top 10 this year, three new brands moved into the top 20.
- “Nothing is being left untouched” in Zumiez evaluation of the women’s market whether it’s product, how they sell the product, how they merchandize it in their stores. They have a complete team working on how they’re going to handle the women’s business.
- Zumiez plans to open 25 new stores in 2010 but will if thing continue to improve they are “certainly willing to open more locations if we can strike the right deals with landlords.
Follow the jump for all the numbers and the entire release.
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by The Editors on March 11, 2010
According to the SnowSports Industries America trade organization the SIA Denver Show held January 28-31, 2010 had the highest attendance rate of the last six shows. They say the four-day show attracted 18,932 attendees, 3,100 booths representing 845 snow sports brands, and that it featured 125 new exhibitors. We had some pre-show issues with what exactly a “new exhibitor” was but lets just say there were a lot of new companies at the show and while we didn’t see huge crowds anywhere, it was definitely better attended that we expected.
“For the first year in Denver, in the middle of a recession, we’re very happy with the attendance numbers. We were lighter in some regions but we hope they’ll come back next year after hearing all the positive experiences people had this year,” said David Ingemie, president of SIA.
We do have one question: do the attendance numbers include all the kids bussed in from Denver schools? They all had badges. . .
[Update March 12, 2010: The SIA has answered our questions regarding all the school kids at the show. Here’s what they had to say . . . “Kids from Denver schools were bussed to the Show for a special ceremony. They were a part of a Youth Summit that was held at the Show. In conjunction with the Summit, a press conference was held on Saturday, the day that you must have seen the kids on the Show floor, that took place to announce a bold initiative to get 1,000,000 kids involved in outdoor programs over the next 10 years, The Recreation Outdoor Initiative (ROI). SIA is a supporter of this initiative and any other programs that help get more people on snow.
The kids involved in the press conference were given the chance to briefly walk the Show floor to get them excited about snow sports and for some of them, their first time on snow. They were able to go skiing or snowboarding following their visit to the Show. These kids were not counted in our total numbers.]
For the rest of the press release follow the jump.
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by The Editors on March 11, 2010
Core action mall retailer Zumiez Inc. will discuss their Q4 and year-end 2009 financial results with analyst’s today, March 11, 2010, at 2 PM PT (5 PM ET).
Click here to listen in for all the details. This should be a good one.
[Link: Zumiez]
by The Editors on March 10, 2010
The wife of Balinese surfing legend Wayan Suwenda is continuing her battle against Billabong International over the distribution rights to the Billabong brand in Bali, according to a story in the Australian.
In our last update in December 2009 we mentioned that one person was already in prison and another had been added to Interpol’s most wanted list over this same skirmish. Now Suwenda is reported suing Billabong in Denpasar District Court for $168 million Australian.
In the past few years, the dispute has become very public in Indonesia, with CVBB taking out large advertisements in the local media putting its viewpoint, while Billabong has publicly replied to the allegations.
[Link: The Australian]
by The Editors on March 10, 2010
Quiksilver will host a conference call for analysts at 1:30 PM PST tomorrow March 11, 2010 to discuss Q1 results from fiscal 2010, according to a release on MarketWatch.
The conference call will be broadcast live over the Internet and will be available at www.quiksilverinc.com and at www.viavid.net. Computers being used to listen to the broadcast must have Windows Media Player installed.
Wonder if Quik got a piece of the February retail bounce? Today we will know.
[Link: MarketWatch]
by The Editors on March 5, 2010
Today Element’s Johnny Schillereff announced that Billabong has reeled Plan B Skateboards into an “exclusive 10-year agreement” and that Plan B will be operating out of the Element headquarters in Irvine, California.
“The Billabong group’s unwavering support has helped Element blaze the trails we’ve always dreamed of,” Schillereff said. “Plan B is iconic and deep within the fabric of skateboarding and we couldn’t be happier to unite with them.”
Colin McKay agrees.
“Billabong and Element clearly understand brand building,” he said. “Danny, the team and I couldn’t be happier with the opportunity to leverage their strengths and help Plan B reach its full potential.”
Billabong knows better than most that skateboard hardgoods are a great loss leader for selling logo T’s, denim, and even shoes. Plus, we’re sure it’s going to help add a little more diversity to the Billabong mall stores that have been popping up here and there lately. Chalk up another win for Paul Naude.
[Link: Branch Distribution]
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by The Editors on March 4, 2010
The United States Snowboard Association has filed suit against Go211.com owner Action Sports, Inc. after they say the company failed to pay the USSA a “$175,000 sponsorship fee, plus a 30 percent share of the defendant’s advertising rev according to a story in the Salt Lake City Tribune.
Alleging breach of contract, unjust enrichment and trademark infringement, the USSA is asking a U.S. District Court for Utah judge to award the organization monetary damages and to stop Boston-based Action Sports from displaying USSA-affiliated materials. . . . Action Sports President Sean Aruda declined to discuss details of the case, but said, “we obviously have a much different view of the facts … This is just a business disagreement they chose to escalate. . . “We’re disappointed their attorneys took this action, and we’re confident it will be settled amicably,” he added. “We would love to continue doing business with them.”
Chances of that seems kind of slim at this point.
[Link: Salt Lake City Tribune]
by The Editors on March 4, 2010
February wasn’t so bleak for core mall retailer Zumiez according to same store sales numbers released yesterday March 3, 2010.
February sales at stores open at least one year rose 11.2%. Analysts, on average, had expected same-store sales to rise 1.2%, according to Thomson Reuters. Total net sales for the four weeks ended Feb. 27 increased 19.6% to $27.6 million, said the specialty apparel retailer.
Shares were up nearly 20% this morning to over $20: a two-year high for the company due in part to a Piper Jaffray upgrade of the stock.
[Link: Market Watch]
by The Editors on March 2, 2010
The website Alister & Paine bills itself as “the digital magazine for 21st century executives” and seeing how they knew enought to interview Sanuk’s Jeff Kelly we’d have to agree. So how does Sanuk stay relevant?
By constantly doing what Nike and Sketcher and Crocs and those guys can’t do. We’re completely random. It separates us and it still gives us that feeling that we’re a brand that works out of a garage. . . We’ve had guys like Brad Pitt and Matthew McConaughey embrace the product and wear it religiously. Vanity Fair asked Brad Pitt what his favorite shoes were and he said ‘Sanuk Sidewalk Surfers’. You can’t ask for a better endorsement than that.
[Link: Alister & Paine]
by The Editors on March 1, 2010
According to a story in the Wall Street Journal Intrawest owner Fortress Investments LLC has reached an agreement with creditors to restructure its $1.4 billion debt and will not be auctioning off equity today.
The Wall Street Journal reports that the new deal will allow Intrawest owner Fortress to inject an additional $150 million of equity into the business to pay down debt and retain control of the resort company. . . The report also indicates a new $1.2-billion loan package will extend debt maturities by as long as four years and will charge a higher rate of interest than existing debt.
If you subscribe to the WSJ you can read all the details.
[Link: Wall Street Journal and Canadian Business]
It could have been worse: Zumiez total sales were down .3 percent in 2009 vs. 2008, but their sale store comps were down 10 percent according to information released today.
