by The Editors on September 15, 2008
Analysts at Piper Jaffray & Co. downgraded Zumiez today saying that the companies shares have “surpassed our target objective” and are “trading essentially in line with the long-term earnings growth rate” and they’re giving Zumez a “neutral.”
We expect shares to trade in range into the 1H of 2009 and would recommend adding to positions on sector pullbacks – longer-term, ZUMZ offers a superior investment profile. Our 2-3 year outlook remains positive, tied to square footage growth, solid category trends, and the company’s ability to orient its merchandise to evolutions in lifestyle cycles. We’ve re-set our 12-month price target to $18/share based on 20x FTME EPS (FQ4-FQ3), in line with the company’s LT earnings growth rate.
Sure, fine.
[Link: Street Insider]
by The Editors on September 13, 2008
Wonder why we never see product from Hollister on sale at CostCo?
by The Editors on September 5, 2008
While we were busy sitting through ASR seminars yesterday Quiksilver held their quarterly conference call. Luckily Reuters was there get all the details: “the company posted a quarterly profit that beat estimates, and stood by its fiscal-year earnings view, sending shares up 13 percent.”
Quiksilver said on Thursday that profit margins were fattened by a higher percentage of sales in Europe and at company-owned retail stores. Results were also helped by a tax benefit. . . . “We had a pretty decent quarter, given how tough the retail environment is around the world,” said Chief Executive Robert McKnight in a conference call with analysts.
Higher percentage sales at company-owned retail stores. . . wonder if that’s how Hollister does it?
[Link: Reuters]
by The Editors on September 4, 2008
If listening to Quiksilver’s Bob McKnight read a statement and then answer anylists’ questions is something you find entertaining (like we do), then tune your Internet deck to www.quiksilverinc.com at 1:30 PST today September 4, 2008 and be enlightened and entertained all at the same time with Bob, Joe Scirocco, Marty Samuels, and Bruce Thomas.
[Link: MarketWatch]
by The Editors on September 2, 2008
For those in foreign countries, it’s a nice way to do business: set up the distribution of your favorite brand, get it rolling, and then sell it back to the brand. For the brand it’s a relatively cheap way to expand into foreign markets (with much less risk). That’s what Volcom just did with their Japanese distributor.
This acquisition is a testament to the strength of our brand in Japan after working with our distributor for more than 15 years,” says Richard Woolcott, chairman and CEO of Volcom. “We are excited to culminate a longstanding relationship with an opportunity to work more closely with our accounts in this important territory, while retaining our Japan-based distribution team.”
When it works out nicely, it’s amazing.
[Link: OC Metro]
by The Editors on September 2, 2008
by The Editors on August 29, 2008
The Orange County Business Journal has picked up the story about Quiksilver finding a buyer for Rossignol. Not much new in this story other than two interesting numbers:
Shares of Quiksilver were down nearly 4% near the close of trading Friday with a market value of $990 million.
And this one:
After fees, Quiksilver is expected to see about $100 million in proceeds from the sale, according to Kummetz. . . That stands to have a small impact on the company’s projected debt of $1.1 billion at the end of its fiscal year in October, the analyst said.
So, in layman’s terms: by the end of October Quiksilver will have more debt than market value to the tune of $110 million. We’re not analysts, but that doesn’t sound good.
[Link: Orange County Business Journal]
by The Editors on August 27, 2008
It appears that Quiksilver has found someone on whom to unload their flagging ski company Rossignol. The company is Chartreuse & Mont Blanc and it’s lead by Bruno Cercley a former CEO of Rossignol.
The proposed transaction is valued at EUR100 million, which comprise of EUR75 million in cash and a EUR25 million Seller’s Note. Quicksilver intends to use the net proceeds from the sale to repay existing indebtedness.
Chartreuse & Mont Blanc is mostly owned by Macquarie Group which also owns a minority interest in the Jarden Group (owners of K2 and Adio), according to a story on MarketWatch.
What a stunning business transaction this has been. Here are the numbers: They bought Rossignol in March of 2005 for $320 million. Then sold off the Cleveland Golf portion of the company in November of 2007, for $132.5 million. So, it looks like Quiksilver only lost about $30 million on the deal in a little under three years. Nice work.
[Link: RTT News and MarketWatch]
by The Editors on August 25, 2008
According to the Australian newspaper The Age, Billabong plans to open up shop in the heart of Russia.
Billabong plans to set up a flagship store in one of Moscow’s trendy shopping districts as a way to assert its dominance in the international youth-wear market. . . . Billabong is sold in over 100 countries including the Czech Republic, Hungary, Poland and Estonia, which makes up about 1% of global sales.
Which reminds us: “Every Russian, looking at Moscow, feels that she is a mother; every foreigner, looking at her and not knowing her maternal significance, must feel the feminine character of this city, and Napoleon felt it.”
[Link: The Age]
by The Editors on August 22, 2008
PacSun’s CEO Sally Frame Kasaks has won 24/7 Wall Street’s Overpaid CEO of the Day award for August 22, 2008 thanks to her total compensation last year of $3.2 million and the fact that the PacSun stock is off over 60 percent during the last year.
After posted flat revenue of $312 million for the last quarter, and operating income of only $3.7 million, Pacific Sunwear’s shares fell 31% today to just above $5. . . . Four firms downgraded PSUN today: Robert W. Baird, Friedman Billings, Roth Capital and BB&T Capital. The most significant cause of the ratings revisions was that the company dropped guidance for the third and fourth quarters.
Yet, as they point out: Kasaks salary remained the same.
[Link: 24/7 Wall St.]
