by The Editors on July 21, 2008
Any wonder why core retailers are getting a little more worried everyday with the “vertical integration” sweeping the industry? Here’s more fuel for the fire. Volcom has just “agreed to acquire the retail operations of Laguna Surf & Sport“ including its two locations in Laguna Beach and Aliso Viejo.”
Laguna Surf & Sport has been a landmark on the Southern California surf and skate scene for many years and this acquisition further demonstrates our dedication to core retail and its importance to Volcom,” said Richard Woolcott, chairman and chief executive officer of Volcom. “It’s great to now be more strongly aligned with one of our longest standing accounts and we look forward to working together even more closely in the years to come.”
Great for Volcom (the stock is up 64 cents on the news), bad for competing Ma and Pa retailers.
[Link: BusinessWire]
by The Editors on July 20, 2008
The Independent’s Josh Sims checks in with Van’s BBQ man Steve Van Doren for the background on “how Vans became a global shoe brand.
What began as a mom-and-pop operation – Paul Van Doren worked for a shoe firm for 20 years before launching his own brand, which he sold to just 50 local stores – has become a $870m (£435m) company. But Steve Van Doren stresses that its MO has not changed since it was founded in 1966, and soon became the shoe of choice for skateboard pioneers. Granted, there was the time it tried to become the shoe of choice for wrestlers, skydivers and break-dancers, and almost went bankrupt. “So now we stick with just being a cool, native southern Californian youth-culture brand. California is the home of action sports and if we were as big around the globe as we are there, we’d be the biggest shoe brand in the world,” says Van Doren, wearing a Hawaiian shirt, denims and, of course, the family firm’s product.
It’s the same story we’ve heard over and over again, but we never get tired of hearing it. And anyone whose seen our closet would know exactly why we feel this way.
[Link: The Independent, photo: New York Times]
by The Editors on July 18, 2008
Taking a bigger step into high fashion Hurley International has signed up “Leonardo DiCaprio’s main squeeze” Bar Refaeli for a new campaign.
She will appear for the brand’s spring 2009 runway show as part of Los Angeles Fashion Week in October. Refaeli, 23, might even lend a hand in designing some of Hurley’s collections. “Anyone can hire a model,” said Lyndsey Roach, Hurley’s vice president of marketing for the young contemporary division. “We wanted to do something different. She lives this lifestyle.”
Yep, we’re thinking Refaeli’s assets ought to move some units for the H.
[Link: Women’s Wear Daily]
by The Editors on July 18, 2008
by The Editors on July 14, 2008
Every time we read notes from the analysts we’re haunted by something Bob McKnight said, “Analysts are just one letter away.” So with that, here’s what Piper Jaffray is saying about Zumiez.
We are upgrading ZUMZ from Neutral to Buy given our belief that shares have over corrected based on current macroeconomic concerns, irrespective of underlying med- to long-term fundamental growth potential. We believe ZUMZ occupies a unique market niche in the active lifestyle category where demand trends remain relatively firm, evidenced by continued above average comp sales growth rates relative to the peer group. At 300 stores, ZUMZ maintains 20%-plus sq ft growth potential for at least 3-4 years and while we are revising estimates downward and new store contribution remains inferior to historic levels, we think shares reflect these risks.”
If we bought action sports stocks, we’d think about it. What with fashion retail being so hot these days.
[Link: Street Insider]
by The Editors on July 9, 2008
In a pre-recorded call today Zumiez Inc reported a “wider-than-expected 3.4 percent fall in June sales at stores open at least a year.” This sent the stock down eight percent.
Footwear and skate hard goods posted positive comps for the month, offset by negative comps in accessories, juniors, men’s and boys apparel,” Zumiez CFO Trevor Lang said in a pre-recorded call.
The good news: total sales were up 10.2 percent to $34.7 million.
[Link: Reuters]
by The Editors on July 2, 2008
Most of this is old news (especially after all the conference calls last month), but hard times in the financial world have impacted teen fashion spending according to a story on Blumberg.com.
“There is absolutely a slowdown in teen spending,” said Holly Guthrie, an analyst at Janney Montgomery Scott LLC in Philadelphia.
Retailers dependent on that group are feeling the pinch. First-quarter net income at American Eagle plunged 44 percent because of discounting, and the retailer may post its first annual profit drop in five years. . . . At Gap Inc.’s Old Navy chain, sales in May were off 25 percent from a year earlier. Abercrombie’s same- store sales dropped in five of the past six quarters.
“While we believe the teen customer has slightly more discretionary income than their parents, they’re still impacted by the sluggish economy,” Zumiez Inc. Chief Executive Officer Richard Brooks said on a May 22 earnings call.
Zumiez’s 309 stores . . . reported its first quarterly profit drop since going public in 2005.
[Link: Bloomberg]
by The Editors on July 2, 2008
And the latest in Billabong’s run to soak up every solid brand in the US comes news that the company has purchased Sector 9 for and undisclosed sum.
Queensland-based Billabong expects the business to add about 2% to group sales, implying the business generates $25 million to $30 million in sales.
“Sector 9’s products, primarily its longboards, really differentiate it from other brands in the boardsports channel and have appeal to surfers, skateboarders and the broader youth market,” Billabong chief executive Derek O’Neill said.
Steve Lake, Dennis Telfer and co-owner Dave Klimkiewicz will continue on with what we’re guessing are nice looking buyouts for increasing sales down the road. Watchout, Burton.
[Link: The Age]
by The Editors on June 20, 2008
Teton Gravity Research, the company most widely known for their ski movies (that occasionally include snowboarding) and their popular website, has been purchased by private equity firm BlackHawk Capital Management for an undisclosed amount, according to a press release posted on Private Equity Hub.
BlackHawk Capital Management recently completed the purchase of Jackson Hole, WY based Teton Gravity Research (TGR), a feature film and TV production company referred to by Outside Magazine as “one of the most influential companies in the outdoor industry.” TGR has produced 23 award winning films and 53 half hours of television programming over the past 12 years while establishing the leading brand in adrenaline sports.
Guess we’ll see how the Jones boys like having business jocks for bosses. They’ll probably be really optimistic about it for about three or four weeks.
[Link: PEHub]
by The Editors on June 13, 2008
For a long while people didn’t really understand that Dragon was owned by Oakley. Then when Oakley was purchased by the largest eyewear company in the world, most didn’t realize that Dragon was a tiny piece of that deal.
Now, according to a press release Dragon has announced that Founder and CEO Will Howard and General Manager Aaron Behle were able to take Dragon private.
“We want to thank Scott Olivet and the rest of the Oakley team for their support over the years and during this transition,” says Howard. “In two very different business plans, we collectively saw an opportunity to allow Dragon to break off and do its own thing in the marketplace.”
“We have restructured Dragon to fully leverage a decade of brand authenticity and capitalize on what we believe is a paradigm shift in the action sports market,” said Behle. “We have a unique position with a unique plan. More importantly, we have a young and passionate team with the ability to ‘zig’ while the market ‘zags’ and enjoy ourselves along the way.”
Congrats, Will. It’s about time.
[Link: Dragon Alliance via Freeskier]
Any wonder why core retailers are getting a little more worried everyday with the “vertical integration” sweeping the industry? Here’s more fuel for the fire. Volcom has just “agreed to acquire the retail operations of Laguna Surf & Sport“ including its two locations in Laguna Beach and Aliso Viejo.”
