Wall Street

Thanks to a new deal with Japan’s Fusion, Inc., Sessions branded clothing will now be licensed in Japan, rather than just distributed.

. . . becoming a SESSIONS licensee will ultimately allow them [Fusion] to provide its Japanese end user a more competitive price, expanding brand presence in the country. . . SESSIONS President Cindi Busenhart is excited about the possibilities linked to the new agreement, “We look forward to collaborating with Fusion as we expand the SESSIONS brand in Japan. Both companies have a strong background in action sports and we have been partners for years. This agreement marks the beginning of a new era for SESSIONS, strengthening the brand globally while maintaining the highest quality product.”

For the official word from Sessions, follow the jump. [click to continue…]

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Dakine is leaving it’s old Hood River headquarters in the spring and will occupy half of a 45,000-square-foot facility in the Port of Hood over’s Waterfront Business Park, according to a story in the Portland Business Journal.

Dakine will relocate from its current headquarters on Columbia Street in downtown Hood River to the new Parkside Lands site at 603 Portway Ave. next spring. Once the building is completed, Key Development will transfer ownership to Parkside Lands LLC.

Looks like workers will be able to sail (or kite) right out the front door. New offices, new owners? Wonder what else is in store for Dakine in the coming months?

[Link: Portland Business Journal]

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Billabong announced yesterday (September 5, 2012) that they have received an “indicative, non-binding and conditional proposal from another party interested in acquiring all of the shares in the company and which states “we currently propose a cash consideration value of around $1.45 per share.”” This is in addition to the previous offer for about the same price made by TPG International, LLC.

Due to a “confidentiality agreement” Billabong won’t say who made the offer, however, Bloomberg Businessweek claims that “people familiar with the matter” say the new bidder is the Boston, Massachusetts based Bain Capital (hello Mitt Romney). This is apparently being seen as good news.

“It’s great news for shareholders of Billabong because it adds pricing tension,’ said Tim Montague-Jones, senior equity analyst at Morningstar Inc. (MORN) ‘‘The probability is quite high that a higher offer could come through. A deal could get done.” . . Shares of Billabong rose 7.5 percent to A$1.365 at the close of Sydney trading, the biggest daily gain since July 24, and swelling the company’s market value to A$654 million.

Bain Capital Private Equity is involved in dozens of companies including Bombardier, Burlington Coats, Domino’s Pizza Japan, Dunkin’ Donuts, Guitar Center, and many, many more. For the official word from Billabong, follow the jump. [click to continue…]

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Last week Spy announced (in forms filed with the SEC) that they were cutting 20 employees and ending their direct sales in Europe and moving back to a distributor model. What does this all mean exactly? We’re not sure and neither is Jeff Harbaugh, but that hasn’t stopped him from discussing what he think about it on his Market Watch website.

I feel strongly both ways about what Spy is doing. On the one hand, the balance sheet and cash run rate certainly seems to require expense reduction. On the other hand, their strategy has been to invest in the brand to get revenues to a level that could support the required marketing effort. For all the progress Spy has made in increasing brand sales, it looks like somebody think it hasn’t happened fast enough to justify the continuing required cash investment.

For the rest of Harbaugh’s thought, click the link.

[Link: Market Watch]

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Mike Carter the former Electric marketing director who left Electric for Skullcandy and the left Skullcandy for Electric has now left Electric once again. In this latest tour of duty he lasted a little over 10 months.

At that time, he said, “I could not be more excited to join the Electric, Volcom, and PPR teams and help to enhance the synergies between all groups.” Now, he’s saying it was a group decision:

We have made a mutual decision to part ways,” Carter said via email. “Our parting is on good terms.”

And good terms are always good. We’re guessing he’s not going back to Skullcandy, but if he did he’d be the marketing ping-pong champion of the world.

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Australia’s Business Spectator is raising the bar on Billabong takeover speculation by suggesting that Rhone Group, the private equity firm that owns 20 percent of Quiksilver, may or could be looking to snatch up Billabong if the price is right.

While it’s not clear whether Quiksilver or Rhone, a New York-based private equity firm, is eyeing the situation, it’s fair to say it’s likely to be Rhone who has the final say on any move given Quiksilver’s history of debt issues and market value of $US513 million — below Billabong’s at about $650m.

Guess using the words “could” and “might be” allow the press to say pretty much anything they want. We can’t really imagine a scenario where Quiksilver’s problems could be solved by adding Billabong’s to their list. We’d like to think Quik learned their lesson with Rossignol.

[Link: Business Spectator]

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When Billabong reported their financial results for the year ended June 30, 2012 this week there weren’t many surprises. The company reported a $275.6 million loss, according to a story in the Business Spectator. But CEP Launa Inman is still confident.

Chief executive officer Launa Inman said that at an underlying trading level, the group remained profitable. . . “As previously flagged to the market, the group’s results have been adversely impacted by various significant and exceptional items,” Ms Inman said. . . “In recording the various significant and exceptional costs and charges, the Group has endeavoured to adopt a conservative position.” . . “The group is well on track in implementing the initiatives outlined in the previously announced strategic capital structure review and will continue to implement a number of new strategic initiatives announced today as part of Billabong’s transformation strategy.”

According to Inman’s new plan (click here to dowload) the company “will focus on simplifying the retailer’s business, leveraging its brands, expanding its online business and globalising its supply chain.” Billabong has closed 58 retails stores since February 2012 and 82 more shops are set to close this year. Ouch.

Follow the jump for the official word from Billabong. [click to continue…]

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