by The Editors on December 5, 2008
After Billabong CEO Derek O’Neill cut the companies outlook (blaming the U.S. retail economy) earlier this week the stock took a tanking, according to the Sydney Morning Herald.
Shares in Billabong have plummeted more than 21% since chief executive, Derek O’Neill, cut his profit outlook yesterday and said the worldwide retail gloom was the worst he had ever seen. . . .Stocks fell 18% to $8.20 yesterday, the largest decline since it listed eight years ago. Billabong’s share price was down more than 3% to $7.94 at 12.50pm today.
These kinds of stories really aren’t news any longer, but we’re going to keep posting them for historical purposes.
[Link: Sydney Morning Herald]
by The Editors on December 4, 2008
They weren’t as far down as Zumiez, but Pacific Sunwear’s same-stores sales slide 10 percent in November “citing sales decreases in all of its regions except the midwest:” the action sports fashion gold belt.
Total sales for the month fell 8 percent to $101 million from $110.2 million in November 2007. . . . For the first 11 months of the year, same-store sales fell 4 percent. Total sales fell 2.9 percent to $1 billion from $1.03 billion during the same period last year.
[Link: Portfolio]
by The Editors on December 4, 2008
After Adidas Group Chairman Herbert Hainer emailed his 31,000 employees to let them know that the footwear giant would be skipping their $6.5 million holiday party this year thanks to the “current climate” not offering an “occasion to party,” the heads at Etnies decided it was time to step in and help their downtrodden footwear brothren.
In a full page ad in Willamette Week, Etnies invited the employees of Adidas to a Christmas party at My Father’s Place Bar including “special appearances by Santa Claus and his lovely lady elves.”
It is in the holiday spirite that the skateboarders and employees of etnies Skate Shes extend a warm and sincere invitation to the skateboarders and employees of Adidas USA to joing us in a symbolic “laying down of arms” for one joyous night, that we may come togethe and reflect upon life’s gifts as we share good cheer, celebrate the season and kick the new year off on a solid foot.
Nice. But now the big question: will anyone show up? Free beer does tend to draw a crowd. Either way it made CNBC and that’s probably worth the cost of the ad. Click here for the video.
by The Editors on December 3, 2008
Billabong is letting investors know that for the second straight year their first-half earnings-per-share are going to fall according to a story on Bloomberg.com.
Slowing demand in the U.S. “has accelerated throughout November,” Gold Coast-based Billabong said in a statement today. The company cut its forecast for annual EPS growth between 6 percent and 10 percent in the year ending June, down from an October prediction for a rise of as much as 16 percent. . . . The reduced annual EPS forecast comes less than six weeks after Billabong raised earnings expectations citing a slump in the Australian dollar.
It appears the U.S. economy is causing more problems than a slumping Australian dollar can make up for.
[Link: Bloomberg.com]
by The Editors on December 3, 2008
The core mall retailer Zumiez came in a little ahead of the street on their November same-store sales numbers according to a story on Forbes.com.
Zumiez Inc. said on Wednesday same-store sales fell 15 percent in November, compared with an increase of more than 5 percent in the year-earlier period. . . . Analysts polled by Thomson Reuters expected sales to fall 15.3 percent.
Net sales, however, only fell 2 percent to $32.6 million and the stock was up on the day (not that the two things had much to do with each other).
[Link: Forbes]
by The Editors on December 3, 2008
One and Co., a San Francisco design shop that has done work for Adidas, Burton, K2, Salomon, and Nixon among other was recently purchased by Taiwanese electronic manufacturer HTC, according to a story on cnet.com.
One & Co is excited to bring our lifestyle, user focused approach to HTC and we look forward to creating iconic, compelling products together,” said Scott Croyle, partner of One & Co. “Knowing about HTC’s cutting edge technology and proven track record of innovation, we are excited to collaborate with HTC as a global lifestyle brand.”
Not a bad exit strategy.
[Link: Cnet.com]
by The Editors on December 3, 2008
It took a primer from Boil The Ocean to get us headed in the right direction on this one but it seems Bob Denike and the NorCal skate mob has has picked up another brand as Flip becomes part of NHS’s “brand roster.”
Bob Denike, President and CEO of NHS had this to say, “The addition of Flip strengthens our position to be the #1 skateboard supplier in the industry. The NHS strategy is simple; strong brands across all categories, innovative product development and working with the best pro skaters; past, present, and future. The Flip brand together with the global Flip team are a powerful and welcome addition to NHS. And frankly, it’s about f*#king time!”
It’s all just painted plywood anyway, right?
[Link: Transworld Business via Boil The Ocean]
by The Editors on December 1, 2008
In a race to crush the action sports media competition, NBC is loading up. First, NBC’s AST Tour brought in MTV. Now, an entirely new alliance has been created aggregating the Action Sports Tour properties (AST) with Maloof Money Cup, AMA Motocross Championship and King of Wake series. It’s called Alli: The Alliance of Action Sports.
Alli’s mission is to facilitate the momentous growth of action sports by showcasing both the competition and lifestyle aspect of these sports. We believe these are the sports of a new generation and Alli will bring together the best properties, athletes, and brands globally for the fans of action sports,” says Wade Martin, President of Alli, the Alliance of Action Sports.
Alli has an entirely new, updated website to go with new events. Seems like a nice preemptory strike by NBC against the much rumored (though obviously delayed) relaunch of action sports on ESPN. Now all NBC needs is a magazine group to go with it.
Follow the jump for the whole press release or check out this story on Sports Business Journal.
[click to continue…]
by The Editors on November 30, 2008
We know this has gone on way, way, way too long (we’ve already said that three times we think). But now, Jake Burton Carpenter has written an editorial for the Burlington Free Press regarding the Love board debacle in which he outlines all the amazing financial benefits Burton has brought snowboarding and the state of Vermont, and then issues a veiled threat that he would “rather relocate the company to another state than compromise our commitment to listen to core snowboarders.”
We’re so over this whole story that we’re not even going to comment.
[Link: Burlington Free Press]
by The Editors on November 26, 2008
Australia’s former Brother Neilsen retail chain apparently owes Billabong International AUS$674,000 and the company wants to get paid. That’s apparently why Billabong’s subsidiary GSM Operations is taking them to court, according to Goldcoast.com.au.
GSM Operations has filed a statement of claim in the Queensland Supreme Court seeking damages from Paul Neilsen and Ahmed El Safty, along with an associate of Mr El Safty, John Hassan. . . .The debt is alleged to have been accrued by Brothers Neilsen between November last year and May this year.
What else can manufacturers do if a retailer has a going-out-of-business fire sale on product that they haven’t even paid for.
[Link: Goldcoast.com.au]
