by The Editors on March 5, 2009
Looks like the bad economy wasn’t the only thing causing problems in the financial world of former Billabong CEO Matthew Perrin. The Sydney Morning Herald is now reporting that Perrin had at least $1.7 million AUS in gambling debts last year before everything went down.
The debts of the former high-flying Billabong chief executive include $800,000 to the Centrebet boss, Con Kafataris, $300,000 to Flemington bookie Frank Hudson and $160,000 to one of Victoria’s biggest bookmakers, Alan Eskander.
What do they say? You have to bet big to win big?
[Link: Sydney Morning Herald]
by The Editors on March 4, 2009
Their lead investor for the past three years may have declared bankruptcy this week, but Firewire Surfboards would like everyone to know that Matthew Perrin’s financial woe’s have nothing to do with them, according to a press release posted on Surfline.com.
Firewire was saddened to learn that Matthew Perrin, one of the companies lead investors over the past 3 years, had filed for bankruptcy protection in Australia due to real estate and other business dealings unrelated to Firewire. . . . “Matthew’s commitment was one of the foundations on which Firewire was built”, said Firewire CEO Mark Price, “and he along with our other lead investors, combined with our innovative product and Taj’s success, have allowed Firewire to develop into a globally recognized surfboard brand in a relatively short space of time.”
Having one of your lead investors run out of money doesn’t seem like a good thing for the business, does it?
[Link: Surfline.com]
by The Editors on March 4, 2009
Not that we want to continue on the bad news program, but Zumiez same store sales for the month of February were down, according to a press release on Market Watch:
Zumiez Inc. . . .announced the company’s comparable store sales decreased 13.4% for the four-week period ended February 28, 2009, versus a comparable store sales decrease of 2.6% in the year ago period ended March 1, 2008. Total net sales for the four-week period ended February 28, 2009 increased 0.2% to approximately $23.1 million, compared to approximately $23.1 million for the four-week period ended March 1, 2008.
Turns out people are only buying what they need these days. And apparently, they don’t need T-shirts with advertising all over them. To hear someone read the above quote please call (585) 295-6795.
[Link: MarketWatch]
by The Editors on March 4, 2009
Yesterday when news of former Billabong CEO Matthew Perrin’s bankruptcy began surfacing it was assumed that the family would not lose their $10 million AUS home at Cronin Island. Now, that’s not looking so clear, according to a story on Goldcoast.com.au.
Insolvency and Turnaround Solutions director Julie Williams, the controller of both companies, said the family’s personal assets, including a huge mansion at Cronin Island, ‘could be on the line’. . . . She said Mr Perrin’s wife, Nicole, a director of one of the companies, was guarantor for one on of the loans.
Whoops. . . The worst is in the stats: “The former Billabong CEO and BRW Rich List regular, who was worth about $150 million last year, owes at least $28 million to ‘banks and Chinese investors’.”
[Link: Goldcoast.com.au]
by The Editors on March 3, 2009
He was described as a “whizkid Gold Coast lawyer who made his fortune in the public float of the Billabong surfwear group” but yesterday Matthew Perrin (pictured right in a 1996 photo) “filed for personal bankruptcy with Insolvency Trustee Service of Australia” according to as story in The Australian.
Mr Perrin and his family, which includes three children, live in a double-block mansion at the exclusive Cronin Island on the Gold Coast, worth more than $10 million, which is not included in the list of his assets. . . .”The house is not in this,” Mr Starkey said, noting that “most solicitors put their houses in their wife’s name”. . . .A statement issued yesterday by Mr Perrin’s solicitors, Minter Ellison, said the bankruptcy had been triggered by “the significant investment made by Mr Perrin and those entities that he controls in a supermarket and property group located in the Xian and Hunan provinces in China over a period of more than three years.”
Looks like Mr. “Noexcuses” has a couple pretty good ones now. It is nice to know that this time his financial foibles have nothing to do with Billabong.
[Link: The Australian and Herald Sun]
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]
