by The Editors on November 18, 2008
Today at 1:30 PM PST Pacific Sunwear’s CEO Sally Frame Kasaks and CFO Michael Henry spent a little over 40 minutes answering analyst’s questions. It sounded a lot like good news for people who like bad news. Here are some highlights from the call:
- Juniors sales up 16 percent in the quarter driven primarily by their house brand Bullhead denim and tops.
- Young men’s sales saw a slight decline in denim and tops
- Branded goods represent 71 percent of total sales.
- The company continues to review fashion brands by their collections and no one is a done deal. “I’m not sure I want to refer to any of our brands as tried and true,” Kasaks said.
- Accessory sales were down 28 percent, but they hope to better manage the category to about 15 percent of sales rolling forward
- Inventory are high and the company will be going very promotional in Q4. Sally Kasaks said the company would “aggressively clear inventory while holiday traffic is available to us.. . . We may have bought too much this year, and I will take full responsiblity for that. On the other hand I think we have done a good job managing the new brands.”
- Approximately 100 of the 940 stores are not profitable, 24 are cashflow negative
- PacSun has said all along that they would be closing 30-40 stores a year as part of normal business. They see no reason to close a larger number of stores this year, mostly because getting out of leases is costly and could take up to two years.
- Footwear down to 4 percent of the business; will be 3 percent by the end of the year
- Capital expenditures for 2009 will be cut by over 50 percent to $30 million total.
- The e-commerce business growth is outpacing the retail store environment so “we will continue to fund that.”
- Michael Henry says they are planning for the market to remain tough for the foreseeable future.
Guess we’ll know tomorrow how the market reacts in the stocks that are listed in the upper right hand corner of the site. It doesn’t sound good. To read a transcript of the entire call click here.
by The Editors on November 18, 2008
Total sales from Pacific Sunwear’s third quarter are down 5 percent vs. 2007, and same-store sales decreased 7 percent according to earnings released today.
The Company recorded a loss from continuing operations of $3.5 million, or $(0.05) per diluted share, for the third quarter of fiscal 2008 compared to income from continuing operations of $17.1 million, or $0.25 per diluted share, for the third quarter of fiscal 2007.
Click the link for all the details.
[Link: MarketWatch]
by The Editors on November 18, 2008
Police in Billings Montana responded to a call at the Rimrock Mall when it was reported that a Zumiez employee had been shot at by a group of teenagers with a gun.
A police report said no one was injured but officials apprehended four teens in the parking lot outside the mall. They found a B.B. gun that looked like a real firearm and the report said one of the suspects was charged with felony assault that involved using and/or displaying that gun.
Just one of the downsides to doing business in a mall, apparently.
[Link: KULR8]
by The Editors on November 13, 2008
by The Editors on November 7, 2008
Say what you will about Adrenalina CEO Jeffrey Geller, but by blending bi-lingual marketing, in-store FlowRiders, and sideshow carnival showmanship Geller is creating the Cabela’s of boardsports stores.
The new 12,000 square foot store, which is having its grand opening tomorrow November 8, 2008, is in the International Plaza Mall in Tampa, Florida and features both the FlowRider and a juice bar.
As we continue with our retail expansion strategy, we are thrilled to bring the Adrenalina experience to the Tampa area,” commented President and COO Jeffrey Geller. “In addition to the FlowRider, the larger retail space allows us to add an even greater selection of top brands, such as Billabong, Volcom, Quiksilver, Zoo York, O’Neil, and Ed Hardy, giving the consumer the ultimate extreme sports experience.”
All the PacSun posing aside, something must be working.
[Link: MarketWatch]
by The Editors on November 6, 2008
Matthew Polianites, the 19-year-old owner of the Boardwalk Skate Shop in Boston’s Burlington Mall has a optimistic take on the current economic downturn, according to a story in the Boston Globe.
“The recession isn’t stopping people from skateboarding,” Polianites, a sophomore at Suffolk University Sawyer Business School, said.
Polianites, who opened the shop after the skateboard mall kiosk he worked in closed, decided he didn’t want to be poor college student. He wanted to “graduate with a store franchise, not a heap of credit-card debt.”
“You try a trick, you fall, you get back up,” Polianites said. “With skateboarding, everything you do is a risk. Same as in the business world.”
[Link: Boston.com]
by The Editors on November 3, 2008
Plans for a new Chicago Billabong retail store on the city’s State Street have apparently been scrapped according to a story in Chicago Business.
Gourmet grocer Fox & Obel and trendy surf-wear retailer Billabong are dropping plans for stores in the former Carson Pirie Scott & Co. building on State Street, leaving the ambitious project with only one tenant as it approaches an opening next fall amid the bleakest retail climate in decades.
Probably not a bad idea. Are people even shopping any more?
[Link: Chicago Business]
by The Editors on October 31, 2008
Active Ride Shop has a pretty good deal going here. Much to the chagrin of other SoCal retailers, they’re having a huge warehouse sale tomorrow November 1, 2008 at 12087 Landon Drive in Mira Loma, California.
Interestingly, customers must pay $10 to get in to shop. The price includes a “Free Mtn High Lift Ticket,” but that’s only “while supplies last.”
Sounds a little like the CostCo model. Maybe Shane should start selling memberships. . .
[Link: Active News]
by The Editors on October 30, 2008
Sales managers know the truth: the midwest is a gold mine. The rest of us are always caught off guard. Today we learned about a new action sports clothing mall store. It’s called Glik’s and it is a 111-year-old family run store that recently opened it’s 53rd location. This one is in Hutcinson, Minnesota.
Glik’s, which carries name brand apparel for young men and women, has seven other Minnesota stores in Alexandria, Detroit Lakes, Grand Rapids, Marshall, Park Rapids, Virginia and Willmar. The company also has stores in Missouri, Illinois, Indiana, Michigan, Iowa and Wisconsin. . . .Among the brands carried by Glik’s are Silver Jeans, Billabong, Hurley, Roxy, Fox, Quiksilver, DC, and Volcom.
Now we know.
[Link: Hutchinson Leader]
by The Editors on October 20, 2008
Earlier today reports of Miami-based action sports mall retailer Adrenalina putting out a $293 million buyout out offer to Pacific Sunwear have now turned into stories of the whole deal being tabled according to a report on Just-style.com.
Original reports quoted Adrenalina CEO Ilia Lekach saying the following:
This action represents our confidence that Adrenalina can reinvigorate PacSun – a powerful brand name whose underlying retail concept has grown stale – by applying our innovative approach of fusing an exceptional product mix to an exciting entertainment destination,” Lekach said in a news release.
The Motley Fool has already called bullshit on the deal.
While the surf-and-skatewear company could use a lift — its stock is off about 80% from its 52-week high — this looks like little more than a publicity stunt or a bid to boost Adrenalina’s own stock price. That’s because its chairman and CEO is Ilia Lekach, who has a rich history of playing such games.
Adrenalina stock got a 40 percent bounce this morning all the way up to $1.70. So maybe the offer was enough.
[Link: Just-Style and Business Journal and The Motley Fool]
