by The Editors on June 12, 2008
Guess everyone needs more side projects these days. In an announcement today Kohl’s big box clothing stores based in Menomonee Falls, Wisconsin said they were bringing Hang Ten back to life with a little help from Quiksilver, the company who helped them with the Hawk line of clothing.
The licensing agreement with American Brand Holdings will make Kohl’s (NYSE: KSS) the exclusive U.S. retailer for the California lifestyle brand. Kohl’s also announced an agreement with Quiksilver Inc. (NYSE: ZQK) to design the collection and its packaging. Quiksilver, of Huntington Beach, Calif., designed the Tony Hawk action sportswear brand that Kohl’s launched in 2006.
What are Quiksilver’s designers just sitting around with nothing to do?
[Link: Bizjournals.com]
by The Editors on June 5, 2008
Volcom CEO and Chariman of the Board Richard “Wooly” Woolcott sold 15,000 shares of his company today as part of a prearranged 10b5-1 trading plan for a cool $375,000. That should keep him rolling for a while (seems like we always say that when VeeCo shareholders get paid).
[Link: Forbes.com]
by The Editors on June 5, 2008
On their quarterly conference call today at 1:30 PM PST, Quiksilver, Inc. announced results for the second quarter ended April 30, 2008. The call included Bob McKnight, Joe Scirocco, Marty Samuels, and Bruce Thomas.
Consolidated net revenues from continuing operations for the second quarter of fiscal 2008 increased 15% to $596.3 million, from $520.4 million in the second quarter of fiscal 2007. Consolidated income from continuing operations for the second quarter of fiscal 2008 was $38.7 million, or $0.30 per share, compared to $32.4 million, or $0.25 per share, for the second quarter of fiscal 2007.
As usual Bob McKnight opened and closed the comments, Joe spoke the most, and Joe and Marty answered most of the questions.
Here are some highlights from the call:
- McKnight is happy with second quarter financials.
- Rossignol has been moved to “discontinued ops”
- “Rossignol Impairment Charge Drives Net Loss of $(1.59) per share”
- The list of potential buyers for Rossignol has been narrowed. The sale is expected to go smoothly but for a little less than had been projected.
- Sponsored athletes continue to dominate. Kelly Slater has won three of four ASP Tour events. His best season start in his career. Sophia Milanovich is number one on the women’s tour. Snowboarder Austin Smith won rookie of the year at the 2007 Transworld Riders’ Poll awards. Five DC athletes have been featured on the covers of action sports magazines.
- Quiksilver currently carries $1 billion in dept. $93 million of that is on the Rossignol books some of Rossignol debt is on the Quik books, but that will be covered with the proceeds from the sale.
- Company stores have been hit by the “housing issues” because 50 percent of their stores are in California, Nevada, Arizona, and Florida.
- Online sales are up, “You don’t have to get in the car to visit our websites,” Marty Samuels said, sounding like he’s finally buying into the whole online thing.
- Thank, God for DC Shoes. It is the bright spot in Quik’s North American sales and continues to buck all the trends.
- DC has survived the PacSun loss by increasing orders in mall stores like Journeys and Zumiez as well as entering the department store channel with DC Apparel.
- Quik and Roxy were both slightly down in total sales.
- Quik is looking for 10 percent growth in sales in 2008. Low single digits in the US, mid-teen growth in Europe, and in the 15-20 percent range in Asia Pacific.
- EPS for the third quarter will be down 20 percent vs. 2007.
- Quik has survived most of the “sourcing pressure” because they are a “good customer” and the company is on track with projected supplier cost savings.
by The Editors on June 5, 2008
In it’s first quarter for 2008 (ending April 26, 2008) Canadian action sports retailer West 49 is reporting a net loss of $4.2 million and a same-store sales drop of 8.1 percent according to a story on Thestar.com.
The $4.2-million net loss – blamed on “the expected challenges posed by cross-border shopping and market conditions in Ontario” – was worth seven cents per share. This compared with a year-ago loss of $3.2 million or five cents per share, which included $400,000 in restructuring costs.
“To lessen the impact of cross-border shopping, we continued to lower our prices to be more in line with U.S. prices,” stated CEO Sam Baio.
[Link: Thestar.com]
by The Editors on June 5, 2008
Considering all the chaos going on the the financial world Pac Sun being down only two percent in May vs. 2007. Same store sales, however, were down three percent according to a press release.
Total PacSun sales for the first 17 weeks of fiscal 2008 were $353.7 million versus total PacSun sales of $356.4 million during the same period last year. PacSun same store sales decreased two percent during the same period.
Seems like it could be so much worse.
[click to continue…]
by The Editors on June 4, 2008
Sorry for all the Volcom news lately, but they’ve had it going on this week. Most recently the fact that CEO Richard “Wooly” Wolcott has been elected chairman of the board of directors. He’ll be replacing his father Renee Wolcott Mr. Wolcott will remain on the board. Wooly will also remain CEO. So, we guess that means he’ll be CEO and Chairman of the board.
In other news, Jason “J-Dog” Steris is now president. Congratulations, Jason. Damn, fine ride so far.
[Link: CNNMoney.com]
by The Editors on June 4, 2008
Too bad those Euros cost so much or we’d be there in a heart beat.
by The Editors on June 4, 2008
Looks like the Volcom kids have opened a new store in the Big Apple. It’s at 466 Broadway (just sound of Grand). Here’s what they said about it.
On Sunday, June 1st of 2008 the long-awaited and highly anticipated Volcom NYC Store opened its doors to the public. . . . After renovations were complete, The Volcom sales marketing team defined our space with unique memorabilia dating all the way back to our inception in 1991. . . . The boys worked tirelessly wheat-pasting murals, hanging custom framed portraits, posters, decks and other miscellaneous items from our athletes and artists. Let’s just say their work wasn’t done until they saw the sunrise.
This is the brand’s 15th retail location.
[Link: Volcom NYC]
by The Editors on June 3, 2008
Want to know what’s going on with the Zumiez of the North? Tune in June 5, 2008 at 9 AM EST and you’ll get to hear the West 49 management team discuss the first quarter of fiscal 2009.
To access the conference call by telephone, dial 416-644-3417 or 1-800-732-6179. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Thursday, June 12, 2008 at midnight. To access the archived conference call, dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21273023 followed by the number sign.
That’s all take to roll like a business champion. Follow the jump for all the details.
[click to continue…]
by The Editors on June 3, 2008
