by The Editors on November 2, 2008
The Orange County Business Journal is reporting that Quiksilver is actively looking for funding to help negotiate what it calls one of the company’s “worst downturns in clothing sales in recent memory.”
Quiksilver has hired Morgan Stanley to help it look at ways to raise money, including from existing lenders, through a stock sale or a possible private equity investment. . .The company reworked a European credit line that was due last Friday. Quiksilver is paying its lender $19 million now and deferring $71 million until March. . . Quiksilver said it expects to have about $100 million in cash and equivalents after the close of the Rossignol sale and debt payments made before the close of the company’s fiscal year that ended Friday.
Sadly, some of the recent rumors regarding the surf giant’s financial future appear to be growing legs.
[Link: Orange County Business Journal]
by The Editors on October 31, 2008
In its original sales announcement in August 2008, Quiksilver was reportedly unloading Rossignol to Chartreuse & Mont Blanc for EU75 million in cash and EUR25 million sellers note (or a total of EUR100 million). But that was in the days before the crash. Now the deal, which is supposed to close “in early November,” looks quite different.
. . . the parties agreed to recast the terms of the sale due to the recent challenges in the global credit markets. The revised transaction reduces the cash payment to Quiksilver upon closing from 75 million to 30 million and reduces the seller’s note from 25 million to 10 million.
So, the price former Rossignol CEO Bruno Cercley is now paying for the company is only EUR40 million. That’s a 60 percent discount after only two months. How’s that for a company for which Quiksilver originally paid $320 million?
[Link: MarketWatch]
by The Editors on October 31, 2008
Volcom released it’s third quarter financial results yesterday and despite an economy in turmoil, the company has increased total consolidated revenues by 23 percent. Wooly is pretty happy about it.
Our solid third-quarter performance is testament to the strength of the Volcom brand and our team amid a challenging retail environment,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “Managing our business with discipline, commitment and focus is essential during these times of economic uncertainty, and we strongly believe that our current position as an industry leader and our healthy balance sheet will empower Volcom over the long term.”
We missed the conference call, but if you still want to listen to a replay just call (800) 642-1687 (domestic) or (706) 645-9291 (international) and enter reservation number 69147961. Or, click here for a full transcript of the call.
[Link: Trading Markets]
by The Editors on October 29, 2008
We’d probably be more embarrassed that anything, but Quiksilver would like everyone to know that several of the stars of MTV’s The Hills enjoy wearing Quiksilver duds on the show.
Doug Reinhart, Brody Jenner and Frankie Delgado are fans of Quiksilver – Fact! . . . Check them rocking Quik on MTV’s hit show “The Hill’s”. Full episodes online here!! . . . Snag your own Quik gear online at Quiksilver.com or stop in a Quiksilver Store near you!
Ah, we’re kind of thinking this might be a great reason not to wear the stuff. Then again if we paid that much money getting our clothing on MTV we’d probably have to pimp it all to hell, too.
[Link: The Mountain And Wave]
by The Editors on October 28, 2008
Derek O’Neill, CEO at Billabong, told investors that the falling Australian dollar is great for company profits, according to a story in The Australian.
There has been a dramatic fall in the value of the Australian dollar, in particular against the US dollar and the euro,” Mr O’Neill said. “After so many years of watching the company’s reported profits eroded by an appreciating Australian dollar, there is now the prospect of strong reported gains from a depreciating Australian dollar.” . . . Every 1c movement from these assumed exchange rates meant a 0.6 per cent change in profit for Billabong, Mr O’Neill said.
And that must make Paul Naude very, very happy.
[Link: The Australian]
by The Editors on October 27, 2008
Hard to believe that no one had patented this idea before, but they didn’t. Volcom did. Now with Zip-Tech Volcom pants and jackets with powder skirts can zip together to keep snow out of ass cracks around the world.
Zip-Tech is a Volcom exclusive feature that allows you to zip the powder skirt of your jacket to your pants – a simple idea that makes a world of difference. This feature will keep you dry and warm on a deep powder day and will keep away that mean ice burn during a slushy spring session.
Or you could just wear a one-piece. . .
by The Editors on October 24, 2008
These are the kinds of stories we wish we had time to do. Sneaker Freaker presents a 19 page online story on the history of Vans straight the mouth of Steve Van Doren (including insightful family photos). And no matter what the Vans marketing department does or doesn’t do, we still love the shoes and the man.
[Link: Sneaker Freaker via Skateboardworks]
by The Editors on October 20, 2008
Earlier today reports of Miami-based action sports mall retailer Adrenalina putting out a $293 million buyout out offer to Pacific Sunwear have now turned into stories of the whole deal being tabled according to a report on Just-style.com.
Original reports quoted Adrenalina CEO Ilia Lekach saying the following:
This action represents our confidence that Adrenalina can reinvigorate PacSun – a powerful brand name whose underlying retail concept has grown stale – by applying our innovative approach of fusing an exceptional product mix to an exciting entertainment destination,” Lekach said in a news release.
The Motley Fool has already called bullshit on the deal.
While the surf-and-skatewear company could use a lift — its stock is off about 80% from its 52-week high — this looks like little more than a publicity stunt or a bid to boost Adrenalina’s own stock price. That’s because its chairman and CEO is Ilia Lekach, who has a rich history of playing such games.
Adrenalina stock got a 40 percent bounce this morning all the way up to $1.70. So maybe the offer was enough.
[Link: Just-Style and Business Journal and The Motley Fool]
by The Editors on October 10, 2008
One of the green tickers up in the right hand corner this afternoon was Volcom even though it took what the Orange County Business Journal called “a wild ride” today. They’re saying VeeCo closed this Friday up because of a report by an analyst who said:
Volcom is in a position of strength boasting a balance sheet with no debt, approximately $80 million in cash and clean inventory levels,” Gallacher wrote. “While orders are weak from a shrinking addressable market, Volcom is one brand that continues to gain market share.”
Then again, the only companies in the space to not finish up today were PacSun, Billabong, and Globe. So maybe it had more to do with the market than with what Caris & Co. analyst Claire Gallacher had to say about it.
[Link: Orange County Business Journal]
by The Editors on October 10, 2008
Tomorrow night is the kick off for Quiksilver’s SiteLA We Ride The Night exhibit which artistically celebrates bicycling in LA.
Ride on over to Quiksilver siteLA Saturday, October 11th, 6-9pm for the “We Ride By Night” opening reception. Special musical performances by Super Karma and Telemetique with dj sets by Laundromat United. Also, burritos will be provided with donation to The Burrito Project.
This party is being thrown by a group of women that Fast Company called Quiksilver’s Spice Girls in their September profile on companyss artmercial project for women.
Sadly, this party is during the Vans Downtown Showdown at Paramount Studio so we doubt we’ll make it over.
[Link: Streetsblog LA]
The Orange County Business Journal is reporting that Quiksilver is actively looking for funding to help negotiate what it calls one of the company’s “worst downturns in clothing sales in recent memory.”
