American sales were up 33.5% in Billabong’s financial half of the year ending December 31, 2006 with a net profit of AUS$90.5 million.
The group said that the first half result is an improvement of the prior corresponding result of $79.5 million, as the group recorded sales revenue of $610.7 million, which was up 26.1% from $484.3 million. . . . Looking forward, Mr O’Neill said that, in the absence of any unforeseen circumstances, the continued global momentum and strong demand is expected to deliver the full year earnings per share growth target of 15%.
And the stock went up 45 cents to AUS$17.85. And the Courier Mail was all upbeat. But that was yesterday. Today according to The Australian the stock tumbled almost four percent. Weird, huh?
[Link: e goli, The Courier Mail, and The Australian]
Unfortunately, we weren’t able to sit in on the Volcom call today at 1:30 PM PST, however, those intrepid reporters at the Orange County Business Journal were nice enough to line it all out for us. And it went something like this:
For the fourth quarter, sales rose 37% from a year earlier to $56.6 million. Analysts had expected about $55 million. . . Net income came in at $7.6 million. Analysts on average expected $7.3 million.
They did add that results for the current quarter could fall short of expections, and that some European expansion could cut into first quarter profits. . . we blame the weather.
[Link: Orange County Business Journal]
We always think this Wall Street stuff is done in some distant corner of a dark room. Truth is it’s all out in the open and you can listen in if you’d like. If you’re bored this afternoon, why not jump in on the Volcom 2006 year-end summary conference call. It’s open to everyone and it’s going down today at 1:30 PM PST. Click the jump for all the details.
[click to continue…]
K2, Inc announced today that J.Wayne Merck (the former COO) has been appointed President and CEO of K2 Inc. and on to the K2 Board of Directors. What has happened to chairman of the board Dick Heckmann? He’s still chairman of the board of directors, but he’s been given the uber-CEO title of Executive Chairman.
“Wayne is an accomplished leader and has a proven track record at K2, where he has been closely involved in all aspects of the day-to-day operations of K2 Inc. for the past six years,” said Mr. Heckmann. “We have built a strong team at K2 and will continue to do so. Since I will be 64 this year, Wayne and I, together with the Board of Directors, believed that it was the time to begin a smooth and seamless transition.
We didn’t know there was anything higher than President and CEO. Now we know.
[Link: Digital 50]
The New York Post is reporting that Primedia’s sell off of their Enthusiast Group (ASG’s parent) could be the largest magazine sell-off in the history of media with bidding that will “easily crack the $1 billion barrier.”
In sheer size, this Primedia auction is expected to dwarf the recent Time Inc. selloff of 18 magazines, which fetched a price estimated to be around $225 million. That deal – which was won by Swedish publishing giant Bonnier – is expected be finalized in early March and went for about 11 times its cash flow.
[Link: The New York Post]
Yesterday, Oakley Inc. reported that their net profit fell 25 percent in 2006. That’s a $15 million drop in just one year. The company blames the dive on costs associated with adding the Oliver Peoples fashion eyewear business and the fact that no one (other than soldiers) would be caught wearing Oakley shoes. That said, things are looking up for their military eyewear business thanks to wars brewing all over the world. Praise the wars. . .
Ironically, Quiksilver, the former boardshort and bikini company, sent out a warning today saying that thanks to warmer than normal weather conditions in North American and Europe that their sales would drag in the current quarter and at the beginning of next winter.
Quiksilver also said this year’s fourth quarter will be subject to carry-over effects from this winter because retailers will be planning more cautiously as they work through hold-over inventory.
Of course this sales dip has nothing to do with the fact that very few people are interested in buying anything with the word Rossignol on it.
PacSun, that wonder mall store that supports so many of our action sports family members has decided to shut down 74 of it’s 225 demo “urban apparel stores.”
The Anaheim-based retailer has struggled for the past year, seeing business also drop in its signature PacSun stores. But business has been particularly tough at demo, which specializes in hip-hop-style clothing. On Tuesday the company said January same-store sales for demo fell 9.5 percent, while its PacSun chain posted a same-store dip of 7.3 percent.
Remind us to check our stock ticker tomorrow. We’re guessing there’ll be some pain.
[Link: OC Register]
In the past two days the media have been reporting all kinds of leaders in the race to purchase TransWorld Media’s parent company Time4 Media. Today a Swedish newspaper (The Local) is quoting The New York Post saying that Swedish, family-owned publishing company Bonnier is the front runner in the sale.
Erik Månsson, information director at Bonnier in Stockholm, confirmed that the company was interested in the magazines, but would not confirm directly that the company had made a bid.
That’s because Erik is a professional; unlike other Bonnier employees who’ve spent the last two weeks saying that the deal is already done.
[Link: The Local and The New York Post]
VF Corp, the parent company of Reef, Vans, and The North Face announced today that it is selling its intimate apparel division to Warren Buffet’s Fruit of the Loom for $350 million. The Vanity Fair side of the business generated more than $800 million in revenue and about $50 million in operating income in 2006.
“This marks an important chapter in VF’s ongoing transformation toward becoming a higher growth, higher margin lifestyle company,” said Mackey J. McDonald, VF’s chairman and CEO.