Quiksilver Profits Up in Third Quarter
Core Huntington Beach, Calif.–based surf brand Quiksilver benefitted from stronger than expected sales in Europe in the third quarter. For those three months, Quiksilver realized a net profit of $2.9 million—up from a net loss of $7.9 million during the same period in 2007. In total, the surf giant’s European business saw revenue go up 25 percent. Total revenues for the quarter went up to nearly $565 million from $528.6 million one year ago. Stateside sales weren’t quite so rosy, declining 4 percent.
In late August, the brand announced the sale of its languishing Rossignol brand to an Australian company, Chartreuse & Mont Blanc, for $147 million. The sale of the winter-sports brand, which Quiksilver acquired more than three years ago, has been anticipated by executives and shareholders since the company announced its intention to sell it earlier this year. The sale of Rossignol would help lower debt and improve cash flow, said Joseph Scirocco, Quiksilver’s chief financial officer, in a shareholder’s meeting in March. The snow brand saw its sales plummet 22 percent in fiscal 2007. The sale of Rossignol allows Quiksilver to focus on its specialty, surf lifestyle goods and retail operations. Still, the $147 million deal represents less than half of what Quiksilver paid for the brand in 2005. Volcom Acquires Japanese Distributor
Costa Mesa, Calif.–based Volcom continues its growth, this time with the acquisition of its Japanese distributor. According to a statement released by Volcom, Japan represents a “key territory of the company’s international operations.” Financial terms of the acquisition were not disclosed.
“This acquisition is a testament to the strength of our brand in Japan after working with our distributor for more than 15 years,” said Richard Woolcott, chairman and chief executive officer of Volcom, in a statement. “We are excited to culminate a longstanding relationship with an opportunity to work more closely with our accounts in this important territory, while retaining our Japan-based distribution team.” New Upscale Hot Tuna Line
Aussie-born surf brand Hot Tuna is celebrating its 40th anniversary in style—contemporary style, that is. Haute Tuna Deluxe, a limited-edition, contemporary women’s collection will debut for Spring 2009 with select distribution targeting approximately 20 high-end specialty retailers. Designed by Los Angeles–based Anna Kenney, the brand’s director of design, Haute Tuna debuted at the Bread & Butter trade show in Barcelona this July. Domestic buyers got their first peek at the collection in August during the Class Trade Show in Santa Monica, Calif., and later at the Action Sports Retailer Trade Expo in San Diego. So far, Kenney said, reaction to the collection has been great. Los Angeles retailer Lisa Kline has picked up the line, as have several other specialty retailers. Packed with beach-chic pieces such as bare silk maxi dresses, washed-leather motorcycle jackets, satin drop-waist rompers, foil-screened T-shirts, animal-print short shorts and striped sweater vests, the collection retails for $70 to $175.
Kenney said the Haute Tuna customer is Hot Tuna’s customer but all grown up and with a good job. “She is still that beach girl, but her tastes aren’t for boardshorts and T-shirts anymore. She wants fashion; she can afford it, and she shops at better stores,” Kenney said. The 45-piece collection will also sell at Hot Tuna’s downtown Los Angeles retail store.
