by The Editors on June 17, 2009
We’ve got to wonder what NBC/Dew Tour has planned with this latest announcement: Adio Footwear founder Chris Miller has just been named Chief Creative Director of Alli’s digital, consumer product, and creative functions according to a Tripp Mickle story in Sports Business Daily.
Chris is the perfect person for the job. We just hope he can survive the realities of dealing with television networks and the people who run them. That is one tough crowd.
[Link: Sports Business Daily]
by The Editors on June 15, 2009
Billabong needed a little cash to hold them over so what did they do? They went to the market in a “rights issue,” according to a story in The West Australian.
The oversubscribed retail rights issue raised $61 million, and the company raised around $230 million from institutions.
. . The proceeds from the entitlement offer will improve the company’s balance sheet and give it more flexibility, chairman Ted Kunkel said in a statement. . . Under the entitlement offer, eligible shareholders could subscribe for two new Billabong ordinary shares for every eleven existing ordinary shares they owned at a price of $7.50 per new share.
The new shares will begin trading on the Australian Securities Exchange on June 22.
[Link: The West Australian]
by The Editors on June 10, 2009
On the heels of the June 8, 2009 news that Quiksilver had secured a $150 million loan from The Rhone Group and would not be selling off any of its brands, DC Shoes President Nick Adcock has resigned “to pursue other interests,” according to a story on SportsOneSource.
Adcock had been president of DC Shoes since February 2006. Prior to becoming president, Adcock had been with DC Shoes for three years and previously served as Australian General Manager, in which he set up the company’s first subsidiary operation. Prior to joining DC Shoes, he held senior positions with Reebok Australia and Reebok International. . . . Quiksilver Americas’ President Craig Stevenson will assume Adcock’s responsibilities on an interim basis while a search for his replacement commences.
This appears to put to rest recent (completely unconfirmed) speculation that Adcock may have been rallying the financing to purchase DC Shoes and take the company private.
[Link: SportsOneSource]
by The Editors on June 9, 2009
SIMA’s fundraiser for a fundraiser held June 5, 2009 at the Cyprus Shore Community Park apparently raised $50,000 to help fund the Waterman’s Ball fundraiser. Yeah, apparently that’s how these things work.
“The SIMA Environmental Fund is excited to be going into our 20th year for Waterman’s Ball,” said Paul Naudé, SIMA Environmental Fund president. “This year’s economic climate has presented many challenges, but through a combined industry effort we are determined to maintain our support of 18 proven ocean-related environmental organizations, and look forward to achieving our fundraising goal of more than $400,000 raised at Waterman’s Weekend this year. The success of this Underwriting Party was a tremendous step toward meeting this goal. We know the very deserving event beneficiaries much appreciate the support of all the event underwriters.”
Spending $50,000 to raise $400,000 is pretty good margins when you think about it.
[click to continue…]
by The Editors on June 9, 2009
The market isn’t exactly responding joyously to Quiksilver’s recent Q3 forecast and financial restructuring plans. The stock was trading down 21 percent this morning to $2.83 a share after the company’s recent plans emerged, according to a story in the Wall Street Journal.
. . . it [Quiksilver] secured financing from private equity firm Rhone in the form of a five-year, $150 million loan to help stabilize its liquidity position. Quiksilver, which has been exploring strategic and financing alternatives, relies on short-term and uncommitted funding. . . Under the deal, Quiksilver will name two board members designated by Rhone. . . In addition, Quiksilver entered a written commitment with Bank of America Corp. (BAC) and General Electric Co.’s (GE) GE Capital, as joint lead arrangers to refinance its existing Americas facility with a new three-year, $200 million asset-based credit facility. The company is also in discussions with its French banking partners to consolidate its European debts into a multi-year facility.
According to Calpers.ca.com Rhone is a “private equity firm specializing in leveraged buy-outs of trans-Atlantic and pan-European businesses.” Guess this means Quik will cover its $55 million Euro note that comes due on June 30, 2009, but what does it mean for the future when two board members are friends of Rhone?
For his part, Kelly Slater appears to have faith in the company. Much of the compensation for this new 5-year Quik sponsorship deal comes in the form of stock, according to a story on Surfingmagazine.com.
[Link: Wall Street Journal and Surfing Magazine]
by The Editors on June 6, 2009
According to the stock trading blog BloggingStocks.com the number one consumer stock to sell right now is PacSun.
As such, Pacific Sunwear (NASDAQ: PSUN) lost its mojo and has yet to find its way. . . Earlier this year, shares bottomed at a price below $1 per share. Since that time, PSUN has been on fire more than tripling in value. . . And just two weeks ago, the company announced another quarterly loss and drop in same-store sales. . . I would take some money off the table here — PSUN is due for a pullback.
Other consumer stocks on Jamie Dlugosch’s list: Pier 1, Vail Resorts, and Cabelas.
[Link: Blogging Stocks]
by The Editors on June 5, 2009
After May ended up being Volcom’s worst month since December, analyst Mitch Kummetz of Robert W. Baird & Co. said he is lowering his forecast for the company, according to a story in the Orange County Business Journal.
He now forecasts Volcom to earn $9.9 million in the third quarter, below the $11.4 million Wall Street expects on average. . . The report sent Volcom shares down after a run-up that have seen them double since early March. Volcom has a market value of about $320 million.
And that sent Volcom shares down nearly 8 percent to $13.32.
[Link: Orange County Business Journal]
by The Editors on June 5, 2009
Rip Curl announced today that they have bumped former European CEO Olivier Cantet up to the position of group CEO beginning July 1, 2009, according to a press release on Global Surf News.
Olivier has been with Rip Curl since 2003 in his current regional role of European CEO and he will continue to manage that business alongside his new group responsibilities. Olivier takes over as Group CEO from Francois Payot, who has held the group position since 2006. . . Francois will resume his former role as Founder Director on the Rip Curl Board alongside Brian Singer and Doug Warbrick.
[Link: Global Surf News]
by The Editors on June 4, 2009
Same store sales at Zumiez were down 20.7 percent in May as net sales fell 9.6 percent according to a story on Reuters.
“For the month, all departments posted a decline in same-store sales,” finance chief Trevor Lang said on a pre-recorded call. . . The company, which is a retailer of action sports-related apparel, footwear, equipment and accessories, said total net sales fell 9.6 percent to about $23.5 million for the four-week period ended May 30.
Guess we haven’t reached the basement yet.
[Link: Reuters]
by The Editors on June 3, 2009
Rob Vassallo, the owner of Australia’s Jett Performance Products, says his designs for a battery powered heated vest that he showed to Rip Curl in 2005 are now being used by the company in their H-Bomb wetsuit and he is not getting paid, according to a story on News.com.au.
“They loved the technology and, after I provided mock-up samples, they sent prototypes to the US for feedback and finally, in 2006, they ordered 500 units,” he said. . . . Rip Curl unveiled the wetsuit last year as the H-bomb using a surfing video shot in Iceland. . . Mr Vassallo said that a week later Rip Curl told him it had lost faith in Jett’s ability to make the wetsuit.
Rip Curl says they have only sold 200 of the suits and that they “absolutely refute the idea that we have stolen anything from Rob Vassallo or Jett,” according to spokesman Gary Dunne. Vassallo, of course doesn’t not agree.
[Link: News.com.au]
