by The Editors on October 23, 2012
Here’s the short version: Analog is going snow and moving back to Burlington. The snow team will stay, but the skate and surf teams will be “transitioned out of the brand”. Gravis is moving to Tokyo and going Asia only as a lifestyle brand. The team will be “restructured to accommodate” that market. Helmet’s and optics will be combined under the Anon brand (with some Red still being produced). Burton will “exit out of” The Program brands (Special Blend, Forum, and Four Square) by 2014 (good-bye). Burton has operated the brands for eight years yet, “the businesses have failed to be viable.” In the surf world Channel Islands and it’s team remain unaffected.
Here’s what founder Jake Burton Carpenter has to say about it:
“Burton has experienced several years of income growth since the recession and paid out bonuses to employees over the last two years,” said Jake. “That said, the economy has a voice of its own that we all have to listen to, and the message is clear: do what you do best and focus purely on it. In our case, that means to narrow our focus to the sport and lifestyle that got us here – snowboarding. We will continue to support Channel Islands in its endeavor to make the best surfboards in the world and Gravis in its new home in Japan, but when you walk through the front door here in Burlington, Vermont, it will be all snowboarding and snowboarding lifestyle all the time – driven by the Burton, Analog and anon brands.”
Sound like a good plan all around and honestly, we can’t believe it took them so long with Gravis and the Program. Burton went far beyond a reasonable investment in many of their brands and should be commended for trying to make them work in spite of market response.
Follow the jump for the official word an complete breakdown of the changes. [click to continue…]
by The Editors on October 22, 2012
Looks like the Frends headphone line has swerved from its former mission of only targeting dirty shreds to also offering a high-end fashion headphone line specifically aimed at women. The website update features super models and glossy photos from photographer Kenneth Capello to help make the push. Girlfrends?
The new headphones feature “jewelry inspired designs, genuine leather and hand crafted metal, soft touch fabrics, memory foam ear cushions and premium 40 mm drivers.” The Taylor Rosegold headphone sells for $199. The Ella Gold earbuds sell for $99.
Well, the product looks solid and they are differentiating themselves from that other headphone company. Oh, wait. . .
[Link: Frends]
by The Editors on October 22, 2012
The Australian Shareholders Association was forced to take back a few things it said about why Billabong founder Gordon Merchant and Colette Paull should be voted off the board after Billabong’s largest shareholder had lawyers contact the ASA, according to a story in the Sydney Morning Herald.
The ASA has now said: ”It was not correct for the ASA to state that Mr Merchant ‘effectively prevented’ the board from ‘accepting an offer of $3.30’.” . . It also accepts that the board made a unanimous decision not to allow due diligence by TPG when it made a $3.30 a share indicative offer and said: ”It is incorrect for the ASA to suggest that Mr Merchant should have known of any ‘perilous financial position”’ before his decision to reject the original offer in February.
With those retractions the ASA still believes Merchant and Colette Paull should be removed from the board for the good of the company.
[Link: Sydney Morning Herald]
by The Editors on October 22, 2012
Don’t let the financial trouble at Billabong and Quiksilver suggest that all is not well in the action fashion industry. There’s no problem if you’re VF Corp. In financial results released today VF says they’re total revenues are up 14 percent, their gross margin is up to a record 46.7, their operating margin has reached 17.5 percent and that all adds up to a record quarter. And the “Outdoor & Action Sports group helped out.
Excluding Timberland, Outdoor & Action Sports operating income rose 16 percent and operating margin increased 220 basis points to an all-time high of 25.7 percent compared with 23.5 percent in the 2011 period. On a GAAP basis, operating income for the coalition increased 29 percent with a flat year-over-year operating margin, reflecting the impact of Timberland. . . Double-digit constant dollar revenue growth in Outdoor & Action Sports should continue in the fourth quarter, driven by strong performance by The North Face® and Vans® brands. Both brands should benefit from new store openings, and comp store and e-commerce growth, supported by higher levels of marketing spending in key regions. For the full year, Outdoor & Action Sports revenues are expected to grow at the higher end of the 25-30 percent range provided in February 2012, with constant dollar organic revenues growing at a mid-teen percentage rate.
Take that everyone else. Follow the jump for the rest of the official word, or click here for full financials. Oh, and as usual Reef did not even earn a mention in the quarterly report. [click to continue…]
by The Editors on October 18, 2012
The surf wear giant Quiksilver is reportedly expanding its online retail presence with stores inside eBay’s Fashion Mall, according to a story on Insideretailing.com.au.
Gary Wall, GM of Quiksilver Australasia, said the move reflects the ongoing evolution of the online marketplace. . . “It is important to understand that eBay has evolved from an auction and secondhand marketplace to a serious full price channel and today the majority of eBay listings are fixed price and new product sales,” Wall said. . . “EBay is one of the biggest online clothing sellers and customers have been purchasing our products on eBay for many years but unfortunately from unauthorised sellers where we cannot guarantee authenticity of the product or appropriate customer service levels.
eBay would seem to streamline right in with Quik’s TJ Maxx, Ross, and Tuesday Morning distribution channel.
[Link: Insideretailing]
by The Editors on October 18, 2012
The Snowsports Industries of America is kicking down all the terrible numbers from the 2011-12 winter season. As any retailer or resort operator will tell you, it was one of the toughest seasons on record. Most of this is because people finally realized that going snowboarding is expensive. Watch the video all the details.
[Link: SIA]
by The Editors on October 17, 2012
Surfline decided to go straight to Triple Crown of Surfing founder Randy Rarick to get his perspective on what the ASP/ZoSea Media deal means to surfers, contests, and surfing in general. It would be difficult to find a wiser, more generous, experienced person in surfing to discuss this. It was interesting to see how optimistic Rarick was about it. Here’s just one of his answers:
I think the timing is right. I think they have the smarts, the drive, and the wherewithal to probably take it to the next level. We don’t have any details yet; we’re meeting in about three weeks to start hammering through those details, but I think they have some connections in the media world that we haven’t been able to tap into. And whether it be ESPN or Fox or NBC, I think you will see the elevation of surfing in the media, no question. By eliminating the specter of the brands having to try to outdo each other, now the brands can focus their energy on using these as a promotional platform and I think these ZoSea guys will bring more money into the sport simply because that’s what they want to do. They want to monetize it, and good for them. Hopefully they get rich on it. And if they get rich on it, that means the tour will improve because it’ll bring in more money, which means more money for the athletes, more money for media coverage. I’m sure some people will bemoan the loss of the soul or the grassroots-ness of the thing, you know, but commercial competitive surfing has always been like that anyway.
We would never disagree with Mr. Rarick, however, after reading the entire interview we were reminded of three things. One, TV doesn’t have the same cultural impact it once had. Two, in the new world of media efficiencies there is very little room for middlemen, and thirdly, once you give it away, it’s very difficult to get it back. But click the link and read the rest before you think too hard on any of that.
[Link: Surfline]
by The Editors on October 16, 2012
Spy is stoked to announce that they have someone to manage their elite surf team. It’s Chris Abad.
A respected and experienced pro surfer, Abad brings added authenticity to SPY’s booming eyewear business, which has seen tremendous growth over the last year and a half. . . “If you can’t out-surf Abad, you may be taken off our roster,” laughs Devon Howard, SPY marketing director. “In all seriousness, his former team manager roles, Surf Ride retail experience, and event marketing at SPY this past year make him a natural fit. But he’s more than just another guy with a great resume. Everyone loves Abad—he’s good people.”
Congrats, Chris. For the official word, follow the jump. [click to continue…]
by The Editors on October 12, 2012
Journalist Fred Pawle talks to Graham “Sid” Cassidy about a deal he nearly landed that was allegedly “the most spectacular offer the sport of surfing has ever seen, one that makes the offer from Californian media company ZoSea, which was accepted amid subdued optimism from within the sport this month, look amateur by comparison,” according to his story in The Australian.
But, in a tumultuous meeting in Hawaii in December 1996, the ASP board voted to request amendments to a contract it had signed with CSI earlier that year. CSI, the goose that had spent that year laying golden eggs, declined. At considerable expense, it walked away. Surfing has never recovered from it.
Nice to look back and claim that a past missed deal that just as easily could have ruined profession surfing was what doomed it, but it is interesting in comparison to the reportedly $20 million ZoSea deal. Click the link to read the rest.
[Link: The Australian]
by The Editors on October 11, 2012
Looks like TPG, the fund that many felt was Billabong’s only hope, has withdrawn its offer, according to story in the Sydney Morning Herald.
The proposal has been withdrawn and talks have ceased, Billabong said in a statement this morning.. . The withdrawal of the bid is likely to put further pressure on Billabong’s shares as the firm struggles with a weakening retail outlook in. . . Shares in the company, which traded at nearly $12 in 2010 and fell as much as a quarter last week after TPG first raised concerned, opened 1 cent, or 1 per cent, higher at $1.005 this morning.
So this means, after taking a really close look at the company TPG decided that they weren’t interested in pursuing what many felt was a low ball offer. Guess it’s time for Launa Inman to get to work with new board chairman Dr. Ian Pollard and turn the slogging Billabong ship around and point it toward the channel before it gets washed up on the rocks.
Follow the jump for the official Billabong press release. [click to continue…]
Here’s the short version: Analog is going snow and moving back to Burlington. The snow team will stay, but the skate and surf teams will be “transitioned out of the brand”. Gravis is moving to Tokyo and going Asia only as a lifestyle brand. The team will be “restructured to accommodate” that market. Helmet’s and optics will be combined under the Anon brand (with some Red still being produced). Burton will “exit out of” The Program brands (Special Blend, Forum, and Four Square) by 2014 (good-bye). Burton has operated the brands for eight years yet, “the businesses have failed to be viable.” In the surf world Channel Islands and it’s team remain unaffected.
