California Apparel News

With 60 percent of its revenue being generated overseas, Australian surf giant Billabong continues to expand its global presence. Billabong International Ltd., parent company of Irvine, Calif.–based Billabong USA, has entered into an agreement to purchase 100 percent of Nixon Inc., an Encinitas, Calif.–based watch and accessories brand.

Under the terms of the agreement, Billabong will acquire ownership of Nixon for about $71 million, including a future payment of up to $24 million, dependent on future earnings. The purchase is conditional pending approval by Nixon’s shareholders. Billabong expects to close the deal by the end of the month.

Founded by Chad DiNenna and Andy Laats in 1997, Nixon produces watches, hats, hoodies, wallets, money clips, makeup cases and T-shirts that are sold in core surf, skate and snow shops as well as boutiques. Like other core brands, Nixon maintains surf, skate and snow teams. The brand counts skate legend Tony Hawk as a team member.

DiNenna and Laats will continue to run the company.

“[They] have demonstrated their ability to establish and grow an authentic brand, and the business is an excellent fit within the Billabong group,” said Derek O’Neill, chief executive of Billabong International.

With the backing of its new parent company, Nixon is set to expand its presence in the global market, O’Neill told the Asian Pulse Businesswire. “The Billabong group has a lot to offer,” Laats said. “The character of their leadership, our shared vision of Nixon’s future and their expertise in the specialty markets make them the perfect choice.”

The youth-inspired premium watch and accessories company is distributed in roughly 30 countries and is expected to account for 5 percent to 6 percent of Billabong International’s group sales in the 2006–2007 fiscal year. Nixon’s watches, which offer unique touches such as wooden insets and leather links, retail at $65–$200.

The addition of the brand will help to strengthen Billabong’s spare accessories offerings. In 2001, Billabong acquired sunglasses maker Von Zipper.

The surfwear giant reported worldwide sales of $843.6 million for the fiscal year ended June 30, 2005, with after-tax profits of $125.4 million. At press time, the company’s stock was trading at $14 on the Australian Stock Exchange. Sales revenues in the Americas grew 28.7 percent to $292.9 million.

According to the company, Billabong offers more than 2,200 product lines in Australia, 1,300 product lines in North America and 1,200 product lines in Europe. The company designs, produces and distributes clothing and accessories for young men and juniors under the Billabong, Billabong Girls, Element, Kustom Footwear, Honolua Surf Co. and Von Zipper labels. Products include boardshorts, T-shirts, swimwear, fleece, pants, denim, bags and accessories.

Etnies Marks 20th Year

Lake Forest, Calif.–based footwear and apparel maker Etnies is celebrating its 20th anniversary and plans to keep the party going all year. Launched in France in 1986 as a footwear company by skaters for skaters, Etnies is marking the anniversary with a special footwear collection and a series of parties in New York, Paris and Lake Forest.

“It is hard to believe that Etnies is already 20 years young,” owner Pierre Andre Senizergues said in a statement. “Etnies will always be committed to creating footwear and apparel that provide the most style, comfort, durability and protection possible as well as continue to protect the core spirit of action sports.”

Etnies will hold parties and events April 6 in New York, June 12 in Paris and Oct. 21 in Lake Forest. The new footwear collection, called the “20 Year Collection,” will include reissues of classic shoe styles and slimmed-down versions of others. The company will also make an effort to reach skaters in small towns with its “Small Town Tour.”

Nikita Opens U.S. Office

Reykjavik, Iceland–based girls’ streetwear brand Nikita Clothing has made great inroads in the American surf-and-skate market with its unique, quirky-cute take on the action-sports theme. This month, the company launched Nikita Clothing USA in San Francisco.

The new U.S. office will include a full-time sales and marketing staff from Deep Distribution, Nikita’s former U.S. distributor. The team will include Jen McVey as vice president, Jessie Cohen as marketing manager and Amabile Dyer as customer service representative. The new facility will include an onsite showroom. The warehouse will be in nearby San Jose, Calif.

“This is a huge change for Nikita and our customers,” said Runar Omarssin, the company’s general manager.

Owner and designer Heida Birgisdottir said San Francisco was the natural choice for the brand’s American home. “It’s close to the mountains, close to the surf, close to skate, full of art and street style, and ready for an earthquake,” she said.

As the company grows, the brand is also evolving. Nikita will launch a line of outerwear at the Action Sports Retailer Trade Expo in San Diego later this month. The addition will help divide the brand’s offerings into streetwear for core retailers and more fashion-forward apparel for boutiques, Cohen said.