California Apparel News

Quiksilver Inc. Chief Executive Officer Robert B. McKnight made surf history again when he kicked off trading for the second time on June 4 at the New York Stock Exchange.

NYSE Chairman and Chief Executive Officer Dick Grasso invited the surf-industry executive to ring the bell to celebrate Quiksilver’s five-year anniversary of moving from the NASDAQ to the NYSE.

“It was really exciting,” said McKnight who, keeping with California’s casual style, left his tie at home and wore a Quiksilver shirt underneath a sports jacket. “Everybody was waiting for me to ring the bell. People were clapping, and our board members were there. It’s a pretty great career moment if you’re a public company.”

The bell ringing came one day before the Huntington Beach, Calif.–based manufacturer announced its second-quarter net income had risen 67 percent to $22.6 million, or 40 cents a share, for the period ending April 30, compared with $13.5 million, or 28 cents a share, for the same period last year. Quiksilver’s second-quarter revenues climbed 40 percent to $262.2 million.

Speedo Revs Up

Authentic Fitness Corp., the City of Commerce, Calif., company that is the exclusive North American licensee for Speedo, has appointed Harry Friedman to the newly created position of general manager of Speedo footwear and accessories.

According to Authentic Fitness President and Chief Operating Officer Roger Williams, Speedo’s footwear and accessories division is one of the company’s largest and fastestgrowing segments.

“This appointment is another positive step for Speedo,” Williams said. “[Friedman’s] footwear-industry experience is particularly important because this area has literally exploded for us.”

Previously, Friedman held executive positions at InSport International, Fila USA and Rugged Footwear Co. More recently, he headed up the sales and marketing departments at Rugged Shark, where he was responsible for the global brand launch of National Geographic Footwear.

“Speedo is a world-recognized brand in the swim industry, and I think there’s a huge potential to expand the brand into footwear,” Friedman said.

In his new position, Friedman will be in charge of sales, marketing and development of distribution strategies for the brand. He will report to Tim Tate, executive vice president of sales for Speedo.

Authentic Fitness is owned by New York apparel company The Warnaco Group Inc.

Lights! Camera! Action Sports!

Action-sports label Globe International Ltd. is diving headfirst into the surf market. The skate-and-surf apparel company, which has its North American headquarters in El Segundo, Calif., is preparing to debut an indie surf video called “Somewhere, Anywhere, Everywhere.”

Filmed in exotic locales such as Tahiti, Indonesia and Costa Rica, the video features surf footage and an introspective look into the lives of surfers Taj Burrow, CJ Hobgood, Mark Occhilupo, Damien Hobgood, Luke Hitchings, Nathan Webster and Pancho Sullivan.

The video will premiere Sept. 6 at the Action Sports Retailer Trade Expo in San Diego. Globe will distribute the video at core surf shops this fall.

Moving Into Swimwear

O’Neill Clothing USA, an Irvine, Calif.–based wet suit and apparel maker, is entering the junior swimwear business.

The company has signed a multi-year agreement with Orange County swimwear company Raj Manufacturing Inc. to co-design, produce and distribute the new line.

This is Raj’s first partnership with a surfwear manufacturer. In recent years, the Tustin, Calif.–based swimwear company has worked with high-fashion apparel labels such as BCBGMaxAzria, which took its swim design and production in-house four years ago, and Guess? Inc.Raj Manufacturing also produces private-label swimwear for Lands’ End, J.C. Penney Co. Inc. and Pacific Sunwear of California.

“Swim is all about the fit,” said O’Neill Clothing USA President Kelly Gibson. “We thought about producing the line ourselves but felt that it would be wiser to license it to an expert like Raj Manufacturing, which has over 35 years in the swim business, is wellliked, and has a great reputation for its swimwear.”

The new junior swimwear line will remain true to the authentic and active surf lifestyles for which O’Neill is known while appealing to fashion-forward customers, said Raj Manufacturing Executive Vice President Lisa Bhathal-Vogel. The line will debut during the July 19–23 run of the Swimwear Association of Florida’s Miami Swim Show in Miami. The collection will be geared toward consumers between the ages of 12 and 24 and consist of bright, youthful separates in tricot fabrics—including sport bras, surf pants, triangle halter tops and side-tie bottoms—that will retail from $68 to $82.

O’Neill, which helped pioneer the neoprene wet suit for surfers nearly 50 years ago, wants to incorporate the neoprene fabrication into some of its swim styles, Bhathal-Vogel said. The collection will also feature some of O’Neill’s signature boardshort prints.

Both companies declined to give sales projections, but Bhathal-Vogel said the line will be sold in more than 2,000 retail stores nationwide. The line’s distribution will be aimed at retail stores that already carry the activewear brand, as well as targeted specialty-surf boutiques, she said.

O’Neill’s decision to launch a junior swimwear line comes at a good time for the company, said Gibson.

“Our brand is in a position now to support a junior swim label,” Gibson explained. “Sales have been increasing steadily over the past two years. We have big plans for expanding our juniors business as a whole.”

Gibson said the company plans to increase marketing by at least 50 percent.

In related news, O’Neill announced the launch of its girls’ tween activewear line, which will debut at the Aug.

Maui & Sons Taps Unger Fabrik

Maui & Sons is giving girls something to talk about.

The Pacific Palisades, Calif.–based surf label has signed a licensing agreement with Los Angeles– based Unger Fabrik, which produces branded apparel under the Weaver trademark, to design, produce and distribute a junior line for the North American market. The line—which will come in sportswear, activewear and swimwear groups—will debut in August at MAGIC International in Las Vegas.

“We think Unger Fabrik is a good choice for junior apparel,” said Maui & Sons President Jim Demet. “We believe they have a great handle on the juniors market with Weaver’s tops collection, and they have great credibility with retailers.”

Maui Girl’s junior collection will be geared toward young women between the ages of 10 and 21 who enjoy the California lifestyle. The collection will feature knit tops and bottoms, boardshorts, fleece tops and bottoms, and denim.

Founded in 1980, Maui & Sons was one of the first surf labels to reach a wide consumer base. However, because of downshifts in the economy during the early 1990s, the company spent the better part of the decade developing brand recognition overseas in Europe, Asia, Japan, Australia, New Zealand and South America. Maui & Sons is currently distributing its surfwear and apparel for men and women overseas through licensing and franchise agreements.

Currently, Maui Girl’s apparel represents a unique interpretation of California beach lifestyle in more than 80 countries across the globe, Demet said.

“Our focus now is to come back to the U.S. and develop our business to a greater level here,” he said. “We saw the success of Maui Girl overseas and believed it would be a great natural extension for the U.S. market.”

Maui Girl will target midtier department stores such as JCPenney and Kohl’s, as well as surf boutiques. The company projects sales will range from $7 million to $10 million for 2004, Demet said.