by The Editors on August 20, 2009
Today the two big action sports fashion mall retailers are going to kick down their quarterly earnings and make their pitches to analysts who have an inordinate amount of control over the companies’ stock prices.
Pac Sun will go first at 1:30 PST followed by Zumeiz at 2 PM. Both will likely be reporting more dismal news from the shopping centers of North America, but we never know. Back to school could be coming up hard.
Click the links below to listen in.
[Link: PacSun Conference Call and Zumiez Conferenc Call]
by The Editors on August 19, 2009
It would appear that Greensboro, North Carolina based online and brick and mortar retailer Boardparadise.com has been forced into “involuntary Chapter 7 bankruptcy proceedings,” according to a story in The Business Journal.
Crossroad Sports Inc., the corporate name of Triad-based action sports equipment and apparel retailer Boardparadise, has entered involuntary Chapter 7 bankruptcy proceedings following complaints from four out-of-state creditors who say they’re owed more than $785,000. . . Burton claims it is owed about $563,000. . . Sole Technology Inc., based in Lake Forest, Calif., joined the petition Aug. 7, saying it is owed about $113,000. . . Robert M. Weinstein, a Greensboro attorney representing the four creditors, said Crossroad Sports has until Aug. 27 to respond, which the company had not done as of Wednesday.
And there are even more creditors interested in getting paid . . .doesn’t sound good.
[Link: The Business Journal]
by The Editors on August 17, 2009
Big hat company New Era Cap Co. Inc has reportedly purchased the Miami based apparel manufcaturer 5th & Ocean according to a story in the Buffalo Business First.
5th & Ocean, a privately held firm, is a minority-certified manufacturer of licensed team sports and private-label items ranging from fleeces and tank tops to hooded sweatshirts and athletic shorts. Its client list includes Major League Baseball, Victoria’s Secret/PINK, Disney Theme Parks, the Dallas Cowboys and K2 Sports. . . “To ensure the long-term growth of New Era in this changing economic landscape, we need to look for strategic ways to diversify our business,” said Chris Koch, New Era chief executive officer. “This acquisition of 5th & Ocean continues to move us forward with our strategy to become a well-rounded lifestyle brand. This was an opportunity we simply could not pass up.”
Big hats, big wallet.
[Link: Buffalo Business First]
by The Editors on August 13, 2009
We always thought that Swell.com was missing out on a large piece of the action sports fashion business by not setting up white-label sites that would allow smaller brands to easily sell direct by jumping on Swell.com’s quality distribution system.
They still haven’t done that, but with Coreshops by Swell they are branching out into an equally cool and potentially large side business, according to an interview with Swell.com CEO Stacy Clark on Shop-Eat-Surf.com.
CoreShops by Swell is doing two things: one, it is aggregating the branded apparel from these shops and offering it for sale on Swell.com. (Want a Whalebone Surf Shop T-shirt from Nags Head, NC? Click here); and two, it pulls together an easy to search listing of core shops from around the US that makes it easy for anyone to find a nearby core shop, event, or promotion.
This works out well for shops and for Swell.com according to Clark.
Yes, it will generate revenue for the shops as well as Swell. What we are most excited about is that it’s a brand differentiator that also helps strengthen a very important industry distribution channel that we do not compete in. Oversaturation by leading industry brands has forced us to think differently about how we partner to do business and create a unique customer experience online.
Truth is, there is really nothing more core in “surf fashion” than T-shirts from local surf shops and shapers. For the rest of the story and the press release, follow the link.
[Link: Shop-Eat-Surf.com]
by The Editors on August 13, 2009
When financial magazine Inc. released their recent list of the top 5,000 fastest growing private companies in America, skatepark builder Spohn Ranch Skateparks bumped up nearly 2,000 spots on the list to number 2,950, according to the Spohn Ranch blog.
“Being recognized by Inc. Magazine is a great accomplishment, but getting today’s youth off the couch and into safe, engaging recreational facilities is the true reward, “said Kirsten Bradford, CEO of Spohn Ranch. “It’s great to see that even in an economic recession, cities are still committing funds to recreational facilities for the kids.”
The company did $4.8 million in revenue in 2008 with 25 employees. How is that for getting all respectable? Nice work.
[Link: Inc. via Spohn Ranch Skateparks]
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]
