California Apparel News

With a strong consumer demand for juniors swimwear in the action-sportswear market, indie label Hurley International Inc. is looking to get in on the action.

The Costa Mesa, Calif.–based action-sports apparel maker announced that it has signed a multi-year licensing agreement with Anaheim, Calif.–based Lunada Bay Corp., which will design, produce and distribute the juniors line, set to bow for Summer 2004.

Swimwear is a new brand extension for Hurley, and according to founder Bob Hurley, there was a strong consumer demand for the company to produce the juniors line.

“Timing is everything, and we feel like the market is in need of something new,” Hurley said. “It’s a good balance for brand building and providing our customers with what they want.”

Choosing partners

Four years ago, longtime industry veteran Hurley parted ways with Billabong USA, the company he co-founded 19 years ago as the North American division of the Australia-based surf brand, to launch an indie start-up that catered to surf, skate and snowboarding cultures.

Soon others noticed Hurley’s independent spirit and keen eye for trends, including Beaverton, Ore., athletic footwear giant Nike Inc.,which purchased the Hurley label almost two years ago for about $70 million. “Our partnership with Nike is a dream come true—we run independently, and we have the ability to make decisions that we feel will benefit our brand,” Hurley said.

As a one-time licensee, Hurley was very careful in selecting a partner to take the Hurley brand into the swim market.

“I think the swimwear market is so discerning about fit that to deliver a product that’s less than world class could be potentially damaging to our brand,” said Hurley, who began discussing a working relationship with Lunada Bay about a year ago.

“We think Lunada Bay is the best in the world at what they do,” he added. “Their reputation for being a great swimwear manufacturer was a strong motivator for us to launch swimwear.”

Headquartered in an industrial complex on the outskirts of Anaheim, the 23-year-old company produces its swimwear through various contractors in Orange County and Los Angeles. In addition to its own collection, Becca, the company holds licenses to produce swimwear for clients including Bebe, Lucky Brand Dungarees, David & Goliath and Mossimo.

“A great license is like a great marriage,” explained Lunada Bay President Susan Crank, a longtime industry veteran. “Lunada Bay and Hurley bring a lot of passion and respect to the relationship.”

The Hurley girl

The line, which will target young women between the ages of 17 and 22, will embody the free-spirited lifestyle of Hurley’s juniors activewear. But the line will not be narrowed down to one particular segment of the swimwear market, Crank said.

“Hurley’s girl is cutting edge and fashion savvy whether she’s in the city or at the beach,” she said. “We want to be able to address all of her personalities.”

The 90-piece collection will offer six groups. Styles will reflect current takes on the hottest trends and silhouettes, including halters, bra tops, short bottoms and low-riding bikini bottoms. The line will bow during the Jan. 10–12 run of Surf Expo in Orlando, Fla., with initial deliveries set to begin at the end of April.

Patricia Osmanson, senior vice president of merchandising and design at Lunada Bay, will head up a four-member design team that will work closely with Hurley Creative Director Lian Murray on the line’s design direction.

With wholesale price points ranging from $16 for a top or a bottom to $50 for customized looks, the line will fit in perfectly with the young women’s swimwear market, Crank said, adding that Lunada Bay’s goal is to follow the activesportswear apparel maker’s channels of distribution, which include specialty boutiques and better department stores.

Both companies declined to give first-year sales projections for the line or to speculate on the license’s overall impact on production volume. “We’re just going to show the line to retailers and see how they like it,” Hurley said.

Retailer Julie McMackin, owner of Molly Brown Swimwear in Newport Beach, Calif., is eager to get a glimpse of the new line.

“I’ve been asking Bob to make swimwear for a long time,” McMackin said. “Because we attract a large O.C. crowd we hope it will be edgy and fashion forward.”

In recent years, surfwear giants such as Quiksilver Inc. and Billabong have seen sales for their juniors swimwear divisions grow steadily. Quiksilver’s entire women’s swim division––which includes Roxy, Raisins, Radio Fiji, Raisins Girls and Leilani––has seen steady sales growth of about 10 percent to 20 percent annually, said Quiksilver spokesman Scott Sowa.

“Swimwear continues to add to the viability of the action-sports brands in the youth’s and young adult’s wardrobe,” said Marshal Cohen of The NPD Group Inc., which tracks apparel sales.

Women’s swimwear brought in $2.5 billion between September 2002 and 2003. Of that, 13- to 24- year-old women purchased $900 million in swimwear, according to the NPD Group.