by The Editors on February 26, 2009
Deckers Outdoor Corp. the parent company of Ugg, Simple, and Teva footwear, saw sales in the fourth quarter surge 56.3 percent from $194.2 a year ago to $303.5 million this year thanks almost entirely to the sales of Ugg products if you can believe it. Talk about a market bucking brand. . .
UGG brand net sales for the fourth quarter increased 62.0% to $288.0 million compared to $177.7 million for the same period last year. The significant sales gain was driven by increased orders for fall and holiday product from domestic retailers, international distributors, and higher sell-through rates at company-owned retail locations and on its eCommerce website versus a year ago. For the full year, UGG brand sales increased 67.5% to a record $582.0 million versus $347.6 million in 2007.
More proof that good taste has nothing to do with footwear sales.
[Link: Sports One Source]
by The Editors on February 23, 2009
No one has ever claimed that Rob Dyrdek isn’t making hay while the sun shines. His latest effort? Three 42 oz. Carl’s Jr. “limited edition” collectors cups.
In stores now and while supplies last, fast food and skateboarding fans can visit their local Carl’s Jr. and pick up a 42 oz. limited edition Rob Dyrdek collector’s cup when purchasing a large drink or a combo. The cups feature three designs by Rob – one introducing his exclusive toy line, Wild Grinders; Rob’s feature film Street Dreams; and his signature DC shoes. All three cups feature Rob’s version of the Carl’s Jr. iconic Happy Star, now with 50% more muscles!
Seriously, 42 ounce softdrink cups? Guess America can get fat live large with Rob, now.
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by The Editors on February 19, 2009
Billabong profits are down 7.1 percent in the “first half” thanks to the US economy, according to a story on News.com.au. Not knowing all the much about currency markets it’s always funny to hear companies saying things like this:
“While the company has experienced margin erosion in its biggest division, the Americas, the effect is being partially offset by strong appreciation in the US dollar against the Australian dollar,” Billabong chief executive Derek O’Neill.
So, if we’re hearing this properly, sales in the US are down, but luckily for Billabong the Australian dollar is going all to hell. Good times in international business, huh?
[Link: News.com.au]
by The Editors on February 19, 2009
The economy didn’t seem to pull Volcom down too much last year according to their 2008 Q4 and full year results released this afternoon. Total consolidated revenues for 2008 were up 25 percent, and probably the best news: “the company generated $24.7 Million in operating cash flow,” has $79.6 in the bank with absolutely no long-term debt. Wooly explains it:
“While the ongoing global macroeconomic turmoil affected our results for the 2008 fourth quarter and full year, the underlying strength of Volcom is well intact,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “In the face of this economic uncertainty, we are working to maintain a healthy balance between being aggressive when we see opportunities and pulling back where we can, including reducing our cost structure. We have a solid cash position and a strong global brand with a devout following. Further, we believe that our product line-up for 2009 is one of our best ever. We plan to approach the year with discipline, commitment and focus, and we remain confident in our ability to ride this period out and prevail as an even stronger company.”
According to the OC Business Journal, however, moving into 2009 things aren’t going so well. Volcom “warned of a big shortfall in profits and sales for the current quarter” . . . projecting “a profit of $3.1 million to $3.9 million for the current quarter, well below the $6.3 million analysts had been forecasting.” That may explain why they cut eight percent of their employees and are giving many others reduced pay.
We would have listened to today’s conference call, but apparently the Volcom audio server doesn’t like Macs, or maybe it’s just us.
For all the press release details follow the jump, or click here for a complete transcript of the call from Seeking Alpha.
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by The Editors on February 18, 2009
The USC crew at Quiksilver got a little deeper recently when James G. Ellis was added to the Board of Directors on February 13, 2009.
Ellis is the dean of the Marshall School of Business at USC. He began his career with Carter Hawley Hale stores and rose to vice president of Merchandising for the Broadway department store chain. . . . Later, he became president and CEO of American Porsche Design and has been involved in several other entrepreneurial ventures. He held leadership roles in several apparel manufacturers and action-sports companies.
Sounds like Mr. Ellis has all the skills necessary to help pilot Quiksilver into the storm.
[Link: OC Metro]
by The Editors on February 18, 2009
The more we follow the financial press and see the way they operates the funnier stories like this become. Forbes has released a list of the highest paid action sports athletes and they base their numbers on completely on “interviews with industry experts.” In other words, your guess is as good as Forbes.
The experts are saying that Tony Hawk made $12 million last year and that put him in the number one position. Shaun White was number two at $9 million, Ryan Sheckler was number three at $5 million.
As Skateboardworks.com says: “Suspiciously missing from the list is Rob Dyrdek and BAM, who both make at least $1 mill per year.” Makes us wonder what “experts” they actually talked to.
[Link: Forbes]
by The Editors on February 17, 2009
It reads more like a nice, swift, kick to a yapping dog, but in a letter released today Pac Sun Lead Director Peter Starrett clearly outlines what the Pac Sun Board of Directors thinks of Adrenalin CEO Ilia Lekach’s plans to oust Pac Sun CEO Sally Kasaks in a proxy battle:
First and foremost, you should know that the Board fully supports Chairman and CEO Sally Frame Kasaks and the strategic program that is underway to build value for PacSun shareholders . . . It’s also clear to the Board that PacSun shareholders will not be well served by a proxy contest pursued by you in furtherance of your stated desire (as most recently to combine PacSun and Adrenalina and install yourself as CEO. But make no mistake, if that is the course you wish to pursue, we will do all that is necessary to protect shareholders.
We keep writing Lekach off as simply publicity hunting, but he seems to be sticking to it.
[Link: MarketWatch]
by The Editors on February 13, 2009
The Motley Fool investor information site has recently given Volcom a “4-star” rating and a headline that says that the “stock is about to pop.” Not sure what that means exaclty, but here is their logic:
Over on CAPS, 380 of the 416 All-Star members who have rated Volcom — or 91% — believe the stock will outperform the S&P 500 going forward. These bulls include MagicDiligence and bullshiite, both of whom are ranked in the top 10% of our community. . . . Late last month, MagicDiligence noted that Volcom “is smartly run, financially sound, and has plenty of growth opportunities overseas. It’s also extraordinarily cheap!”
Not to say we disagree, just that we’re not so sure that user-generated stock advice is the best guide for where people should invest their money.
[Link: Motley Fool]
by The Editors on February 12, 2009
In the latest round of letter writing, Adrenalina the Florida-based, three-store action sports retailer is demanding the resignation of PacSun CEO Sally Kasaks and nominating four people to the PacSun board of directors, according to a story on Reuters.
In a letter to CEO Sally Kasaks, Adrenalina, which owns about 3 percent of PacSun shares, said it has the support of the largest shareholders in demanding her resignation. . . . Adrenalina’s claim of shareholder support could not immediately be verified. . . . “We hereby demand your immediate resignation from Pacific Sunwear, which is imperative for the company’s survival,” Adrenalina said in a letter to Sally Kasaks date Feb. 12.
Makes us wonder if we should buy up a few shares of our favorite publicly traded action sports company and start making demands . . . hmmm?
[Link: Reuters]
by The Editors on February 11, 2009
Like it or not, the moms of the suburban west shop at Sport Chalet for snowboards and skateboards (and ping pong balls) so it is no real surprise that the retailer whose 55 stores are all in “the housing states” would be down in the third quarter ending December 28, 2008, according to a story on Sports One Source.
Sport Chalet, Inc. saw sales for its third quarter of FY09 ended Dec. 28, 2008 declined 10.3% to $104.6 million compared to $116.6 million last year. Eight new stores not included in same store sales contributed $4.7 million in sales for the quarter while same store sales decreased 15.4%. . . . Gross profit as a percent of sales was 22.3% compared to 30.2% for the third quarter of last year.
The last quarter was bad for almost everyone.
[Link: SportsOneSource]
Deckers Outdoor Corp. the parent company of Ugg, Simple, and Teva footwear, saw sales in the fourth quarter surge 56.3 percent from $194.2 a year ago to $303.5 million this year thanks almost entirely to the sales of Ugg products if you can believe it. Talk about a market bucking brand. . .
