by The Editors on August 13, 2008
Looks like 2008 is shaping up pretty well for Spy Optic’s parent company Orange 21. In a financial report released yesterday the company showed that net sales increased 17% to $14.0 million for the three months ended June 30, 2008. That’s up $2 million over the same period in 2007. The company still had a net loss.
A net loss of $0.3 million was incurred for the three months ended June 30, 2008 compared to a net loss of $1.6 million for the three months ended June 30, 2007.
For all the details click the link.
[Link: Trading Markets]
by The Editors on August 12, 2008
Sometimes we forget that Hayes Brothers Snowboards is wholly owned by a private equity firm. Now, we won’t have to remember that any more because their parent company Ault Glazer & Co., Inc. has announced that it will no longer be a PE firm and that the business that’s left over will now be called Global Sports and Entertainment, Inc. This firm will be run by Bill Dully.
The new holding company will have minority ownership in Freedom Grill and Boom Entertainment, and will wholly own The Collectors X, Hayes Brothers Snowboard, as well as Global Authentication, Inc. as its flagship operation.
How’s that for a portfolio of companies: grills that attach to your trailer hitch, sports memorabilia athentication, oh, and snowboarding. Talk about synergy.
[Link: MarketWatch]
by The Editors on July 28, 2008
Things haven’t been going so well since last Thursday’s Volcom Conference call. Shares are down, the market is down, but the Motley Fool investing site is still “stoked” on the stock.
Volcom is one of the smartest consumer-goods companies I can think of, boasting what I consider an intense, in-depth understanding of its customers. That kind of deep understanding of and affinity for a specific client base similarly attracted me to Urban Outfitters (Nasdaq: URBN). . . Furthermore, Volcom’s recent stock’s weakness is giving investors a great opportunity to buy, although the short term might be rough.
Rough, indeed.
[Link: Motley Fool]
by The Editors on July 25, 2008
If you were basking in the sun at Huntington Beach yesterday (like much of the surf industry) and missed the Volcom conference call, here it is transcribed in it’s entirety. Here’s how Wooly kicked it off:
We are no more than half way through the year and I feel good about the progress that we have made managing our business in the U.S. running our new European operation and integrating Electric. The power of Volcom brand continues to capture the attention of consumers around the world and we are excited about the global opportunities that lay ahead.
His comments about electric:
Last quarter we added the full product line from electric, which includes sunglass, goggles, soft goods and accessories. During this period we launched three new sunglass styles, the Technician XL in May and the Detroit and Hoodlum the last week of June. So far the initial sell-through on all three styles has been very positive and we look forward to continuing to build on this excitement.
The Laguna Surf & Sport story:
The multi branded concept of the LS&S stores is a little different for us, but we believe it helps diversify our retail business by providing us with greater insight about our customers and market trends. It also brings an experience team to the company adding strength to our overall retail infrastructure. We plan to keep these stores operating under the LS&S name with the same employees, management and general product and brand mix.
For the rest of the call (including analyst questions) click the link.
[Link: Seeking Alpha and Reuters]
by The Editors on July 23, 2008
Tomorrow, July 24, 2008 at 1:30 PST Volcom will host a conference call to discuss their financial results for the quarter ended June 30, 2008.
The conference call will be available to interested parties through a live audio Internet broadcast at www.volcom.com. Volcom intends to utilize this webcast event to discuss financially-oriented goals and objectives and to disclose material company and industry-based topics in an open manner. The company does not plan to report or comment on its progress during the current fiscal quarter.
For those who are not available to listen to the live broadcast, the call will be archived for one year on the Volcom website. A telephone playback of the conference call will also be available until 11:59 p.m. EST, Thursday, July 31, 2008. Listeners should call (800) 642-1687 (domestic) or (706) 645-9291 (international) and use reservation: 55485369.
[Link: BusinessWire]
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]
