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]
by The Editors on February 11, 2009
Nike plans to eliminate 4 percent of their 35,000 person work force (about 1,400 jobs) according to a story on Oregonlive.com.
The decision to reduce our work force is a difficult one, but it will put our business in the strongest position possible to continue to deliver long-term profitability and growth,” President and CEO Mark Parker said in a statement. . . . The layoffs would be Nike’s first since 1998 and 1999, when the company cut about 2,500 positions — but not the first belt-tightening measure of this recession. Late last year, Nike executives instituted a hiring freeze, reined in travel spending and said they would slow their plans for opening new stores in 2009.
At least Nike is giving some numbers and speaking up about the layoffs unlike some action sports footwear companies we know.
[Link: OregonLive.com]
by The Editors on February 10, 2009
Another analyst who follows Quiksilver’s stock has downgraded her rating thanks to Quik’s rather large debt, according to a story in the Orange County Business Journal.
Caris & Co. analyst Claire Armstrong Gallacher downgraded Quiksilver’s stock to “average” from “above average,” saying the company’s profits are “at risk” due to its heavy debt and the retail sector’s downturn. . . . “Given the large debt burden, tight credit markets and worsening consumer spending trends we would recommend investment in companies with debt free balance sheets,” Gallacher wrote.
The stock closed the day down 24 cents to $1.59.
[Link: OC Business Journal]
by The Editors on February 10, 2009
During the 2008 Q4/Year End conference call with analysts, VF Corp CEO Eric Wiseman said that the company will “remain very interested in acquisitions” for 2009. Though he said they were going to be very careful with their acquisitions and he didn’t mention any companies by name.
The biggest news of the call is that Vans is crushing, which isn’t news to anyone. “At Vans we enjoyed an extremely positive year,” said Stephen Murray, President of VF Corp’s Action Sports Americas. “Domestic sales were up 13 percent and we were up in every category except snow, and that is a small percentage of our business.” More Vans notes:
- Footwear sales up 11 percent
- Apparel and accessories grew by 40 percent
- Launch of boys apparel line was particularly successful
- Direct-to-consumer business grew 20 percent
- Vans stores saw an 8 percent increase in sales
- E-commerce grew by 40 percent
- The company plans to open more Vans stores outside California in areas where they feel their retail distribution is lacking
Follow the jump for info on Reef and VF Corp Overall. . .
[click to continue…]
by The Editors on February 10, 2009
Source Interlink (the parent company of the ASG Group) has decided that if the magazine companies aren’t going to pay the 7 cent per copy increase, then there is a conspiracy against them, according to a story on Folio.com.
Source Interlink filed a lawsuit on Monday claiming rival wholesalers, as well as publishers, are attempting to force the company out of business. . . . The suit, filed in New York federal court, seeks emergency court intervention to prohibit the defendants—including publishers Time Inc. and Hachette—from monopolizing the U.S. magazine wholesaler market, a Reuters news report said. In the suit, Source alleges that the defendants “conspired” to force the company to sell its distribution business at a steep discount to rivals Hudson News and News Group.
Questions: what does this mean for Surfer, Surfing, Snowboarder, and Skateboarder? If the distribution business is sold, then who will distribute the Source Interlink magazine titles? Or will those be sold, too?
[Link: Folio]
by The Editors on February 9, 2009
Looks like getting printed action sports magazines that last mile to the newsstand is going to get a little harder now that Anderson News has “suspended normal business activities,” according to a story on Folio.com.
The decision comes roughly three weeks after the Knoxville, Tennessee-based Anderson, along with fellow wholesaler Source Interlink, threatened publishers with separate 7-cents-per-copy price hikes. . . . Publishers largely balked at the 7-cents-per-copy surcharge and refused to pay, upset at the wholesalers’ sudden and “unilateral” decision to boost costs. . . . In a statement announcing the suspension, the company said it will “continue to hold discussions with publishers and retailers, trying to develop a viable model that allows it to remain in business.” Anderson said the situation is “a mess for us all.”
No doubt.
[Link: Folio]
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.
