by The Editors on August 12, 2009
There is nothing that reduces marketing down to its purest level than selling a virtual, infinitely reproducible product. And that’s exactly what Quiksilver and Roxy are doing with their new deal with the X Box Live’s Avatar Marketplace. Users of X Box Live will be able to dress their online personifications with virtual clothing paid for with real money.
Now those people can buy and download special clothing and props for their Little Computer People. For 80 or 160 MS Points — that’s $1 or $2 in real money — you can buy your fake self a shirt by Adidas or sweater by Quiksilver.
While some would argue that the low cost of manufacturing in China has already turned the fashion business into a “virtual economy” there still is nothing quite as efficient as selling products made out of bits, not atoms.
[Link: IndyStar.com and Transworld Business]
by The Editors on August 7, 2009
by The Editors on August 6, 2009
When Nissan Canada decided to give away 50 new Nissan Cubes their advertising agency Capital C thought it would be cool to have a “social media” contest and use snowboarder Leanne Pelosi as one of their three English language judges.
Contestents were to use social media to show of their “creative skills” and then a panel of judges would select 50 winners who would drive away in a brand new car. After the winners of the cars were announced on June 23, 2009 a website EncyclopediaDramatica noticed that of all the entries across Canada, three of Leanne’s friends happened to win new cars, according to a story in Marketing Magazine.
Judge Leanne Pelosi in particular has connections to at least three winners, one of whom, Jeff Keenan, was alleged by Encyclopedia Dramatica to be her boyfriend. . . While Nissan claims the two do not even reside in the same province, there is a significant, easily verifiable connection between judge and contestant. Pelosi once headed up snowboard video production company Runway Films, which listed Keenan as its primary contact. Pelosi also appeared in snowboard videos directed by Keenan.
The other two winners who Leanne knows were Robin Van Gyn, and skier Anthony Bornonowski. Then again, Leanne knows a lot of really talented people. . .
[Link: Marketing Mag via Shredbetties]
by The Editors on August 6, 2009
While we hate to think that analysts have this much power over stock prices, Caris & Company analyst Dorothy Lakner reportedly gave Zumiez a 17 percent bump this morning when she said she liked what she was seeing at the mall retailer, according to a story on CNBC.com.
Caris analyst Dorothy Lakner said Zumiez said it would offer back-to-school deals, and “its efforts seem to be bearing some fruit.” Lakner said things look “less bad” ahead of the back-to-school season and that there were signs of improvement at stores in the western U.S.
Lakner didn’t let Zumiez 17 percent July same store sales drop ruffle here at all. Too bad they’re not always saying nice things.
[Link: CNBC.com and Puget Sound Business Journal]
by The Editors on August 6, 2009
Struggling international resort owner Intrawest has sold two French resorts we’ve never heard of, according to a story on Metronews.ca.
Vancouver-based Intrawest said it has agreed to sell the lodging and commercial operations at Arc 1950 Resort in Savoie and the Flaine Montsoleil Resort in the Haute-Savoie region of the French Alps. . . The price was not disclosed.
We’re going to go ahead and guess that this won’t be the last asset Intrawest sells in coming months.
[Link: Metronews.ca]
by The Editors on August 4, 2009
Seems like nearly every action sports business could use a million dollar cash infusion, but very few are doing what Chris Saydah is doing. He’s listing his financial needs on NuWire Investor a website that helps connect people with money with those who need it.
Strength Distribution is planned to be a Salt Lake City, Utah company based around the Swiss urban clothing company Advita. We are currently seeking funding. . . The founder is a 10yr industry veteran, with solid and tasteful experience in marketing and management. . . Strength in a turnkey operation and will run as a distribution, marketing and fulfillment company.
Ask and ye shall receive. . .
[Link: NuWire Investor]
by The Editors on August 3, 2009
It appears that Quiksilver has been given a little more time to get things straightened out, according to a release posted on Welt.de.
Quiksilver, Inc. today announced that it has entered into an agreement with its European banking partners to consolidate its European debt obligations, including previously uncommitted lines of credit, into a new committed 4-year facility consisting of €170 million in term loans, a letter of credit facility with a capacity of €40 million and a €58 million revolving line of credit. . . As part of a separate agreement, Societe Generale Bank & Trust, a member of the European bank group, has extended the maturity of a €50 million term loan due to mature in July 2010 until July 2013.
We wondered why the stock was going up this morning. For Bob McKnights somewhat simplified explanations on Quik’s current financial landscape, click here for his interview with TransWorld Business’ Josh Hunter.
[Link: Welt.de]
by The Editors on July 31, 2009
While Volcom may have beaten analysts estimates in Q2 the company’s Q3 outlook is what has pulled the stock down nearly 9% this morning. And thanks to Volcom’s forecasted 65% drop in PacSun business Wedbush Morgan has downgraded the stock from Neutral to Underperform, according to a story on StreetInsider.com.
Wedbush Morgan cut 2009 EPS estimates to $0.60 from $0.81, 2010 to $0.59 to $0.93 and lowered its price target to $8 from $12. The firm said the significant decline in PacSun biz due to fundamental changes will not likely reverse when the consumer improves.
Analysts. . .
[Link: Streetinsider.com]
by The Editors on July 31, 2009
Yesterday we linked to a completely erroneous story on a European website involving Salomon and Bonfire’s parent company Amer Sports. Maarit Mikkonen, Communications Manager, for Amer Sports was kind enough to set us straight.
Amer Sports Corporate headquarters is not moving from Finland to Germany. Amer Sports operations in Germany are moving under one roof.
We apologize for unknowingly promoting incorrect information on the site.
by The Editors on July 30, 2009
Volcom reportedly their Q2 2009 financial results today and things weren’t that great, according to the press release on Fox Business.
For the 2009 second quarter, total consolidated revenues were $54.2 million compared with $72.5 million in the second quarter of 2008. . . Total revenues in the company’s U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the company’s branded retail stores, were $43.6 million compared with $60.2 million in the prior-year period.
Wooly did what he could with the spin.
“Despite the continued macro economic challenges in the second quarter, our focus and drive to maintain the strength of the Volcom brand is resolute and propelled by our high quality and innovative products,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “Our global presence is stronger than ever, and that, coupled with the sound management of our balance sheet, uniquely provides us with the solid foundation to position our company as a leader in the action sports industry.”
Still, the company has no “significant debt” and around $96.2 million in cash, cash equivalents and short-term investments. And the really great news: analysts were expecting a $.02 per share loss and the company came in at a $0.04 cents per share profits, according to Reuters. So they have that going for them.
[Link: Fox Business and Reuters]
There is nothing that reduces marketing down to its purest level than selling a virtual, infinitely reproducible product. And that’s exactly what Quiksilver and Roxy are doing with their new deal with the X Box Live’s Avatar Marketplace. Users of X Box Live will be able to dress their online personifications with virtual clothing paid for with real money.
