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La Jolla Group Names New President And CFO

The La Jolla Group—the apparel and accessories licensee of O’Neill, …Lost, Rusty, and The Metal Mulisha in the U.S.—announced today that it has hired Bill Bussiere as its President and CFO.

Bussiere resigned from Quiksilver last week. He joined Quiksilver in 1998 as senior vice president of Quiksilver Wintersports and Mervin Manufacturing. His left Quiksilver as CFO of the Americas region, and also acted as global CFO of DC Shoes durning his tenure.

Here’s the press release:

Irvine, CA (January 28, 2009) – The La Jolla Group today announced that it has appointed Bill Bussiere as its President and Chief Financial Officer. Bussiere will report to Toby Bost, Chief Executive Officer, and will be based out of the La Jolla Group offices in Irvine, California. The addition of Bussiere solidifies the La Jolla Group’s commitment to become the leading provider of action sports apparel and to continue to grow its roster of top brands that includes O’Neill Clothing, Lost Clothing, Metal Mulisha Clothing and Rusty Clothing. In his new role Bussiere will be a key component in the day-to-day operations of the Company and will assist with the oversight of the top-level strategic path of the La Jolla Group.

“We are excited to add Bill to the La Jolla executive team,” said Bost. “This is a move to seriously strengthen our executive portfolio. The knowledge Bill has acquired about how to build and sustain a growth company is very valuable to the La Jolla Group. Bill has been on a ride with a company from 150 million to over a billion in sales during his prior work experience. Those experiences both positive and negative will help shape the future of the La Jolla Group’s growth path.”

Bussiere comes to the Company with an extensive resume in the action sports and apparel industries, having served 11 years at Quiksilver in multiple executive capacities, and most recently as the Chief Financial Officer for the Americas. He also has held leading executive roles at DC Shoes as the Global CFO, Pour Le Babe Inc., Apparel Ventures Inc., and Patagonia.

“I’m very excited to be joining the La Jolla Group which has four of the top brands in the industry,” said Bussiere. “The La Jolla Group has developed a strong multi brand business model and the financial future of the company is solid. I look forward to working with Toby and the executive team as we continue to grow each brand to its full potential, while keeping our eyes on the horizon for future opportunities. In this macroeconomic environment, I believe the La Jolla Group is positioned for great achievements.”

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PacSun will trim its inventory and lay off more workers

Pacific Sunwear announced today that it is trimming inventory levels by at least 20 percent throughout the chain and eliminating 11 percent of its workforce by cutting 57 positions in Anaheim and field management. It is also cutting its capital expenditures to $30 million as it works to consolidate costs and meet current economic conditions.

The moves come after Anaheim-based PacSun last year closed and sold its Anaheim distribution center and closed all 234 of its 1000 Steps and demo store and eliminated jobs at those sites.

Other retailers and restaurants announced job cuts today, including Starbucks and teen retailer Wet Seal. Quiksilver announced it was eliminating 200 positions Monday.

Here's Pacific Sunwear's full press release.

Pacific Sunwear of California, Inc. (Nasdaq:PSUN) today announced a number of cost reduction actions aimed at strengthening the Company's operational and financial position in fiscal 2009. In anticipation of a continuing difficult economic environment in the coming year, the Company has:

* Reduced planned inventory levels by at least 20 percent throughout the year, thereby significantly reducing the amount of cash that will be invested in inventory at any one point in time;

* Reduced planned capital expenditures to not more than $30 million for the year, a reduction of over $50 million from the fiscal 2008 level; and

* Reduced planned selling, general and administrative expenses on a GAAP-basis by approximately $35 million versus the fiscal 2008 level (2008 includes total non-recurring impairment charges for goodwill and the Anaheim distribution center of approximately $15 million). These reductions are most prominently within headquarters and field management expenses.

Taking these factors into account, the Company currently expects to maintain sufficient borrowing availability for the foreseeable future under its $150 million revolving credit facility. The credit facility expires in 2013 and contains no financial covenants unless the Company is drawn to the last 10 percent of the credit facility. The Company also currently expects to begin fiscal 2009 with cash balances of at least $20 million and no borrowing-based debt.

As part of the reduction in selling, general and administrative expenses, the Company announced a workforce reduction resulting in the elimination of 47 positions at the Company's Anaheim headquarters and 10 field management positions. This action reduces the Company's headquarters and field management staff by approximately 11 percent.

The Company expects to incur pre-tax severance charges of approximately $1.5 million during the fourth quarter of fiscal 2008 ending January 31, 2009 in connection with the workforce reduction. The Company estimates this action will result in pre-tax savings of approximately $5 million per year beginning in fiscal 2009, which begins February 1, 2009.

"The actions announced today are aimed at putting our Company in a stronger position to weather the continuing challenges in the macroeconomic environment while enabling us to continue moving forward with the key strategic initiatives we have underway," said Sally Frame Kasaks, Chairman and Chief Executive Officer. "We are very disappointed to announce the workforce reductions, but believe we must be prudent in managing our costs and strengthening our balance sheet and liquidity as we meet head-on the unprecedented conditions that the retail industry is currently facing."

About Pacific Sunwear of California, Inc.

Pacific Sunwear is a leading lifestyle specialty retailer rooted in the youth culture and fashion vibe of Southern California. The Company sells casual apparel with a limited selection of accessories and footwear designed to meet the needs of teens and young adults. As of January 3, 2009, the Company operated 811 PacSun stores and 126 PacSun Outlet stores for a total of 937 stores in 50 states and Puerto Rico. PacSun's website address is www.pacsun.com.

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Quiksilver and VF Stocks Jump On Rumors of DC Deal

Citi group retierated a buy recommendation on Quiksilver (ZQK) saying “VFC may be close to acquiring skate brand DC Shoes from Quiksilver (NYSE: ZQK), according to WWD reports on Friday. We think this could be a positive acquisition for four reasons:
1) The brand fits well within VFC’s newly created Action Sports Americas coalition, and we think there are opptys to create synergies w/ its Vans & Reef brands, 2) VFC will leverage its global sourcing and distribution to further grow the brand like previous acquisitions; 3) VFC is likely to get an attractive price as a result of market valuations and ZQK’s balance sheet; and 4) We think the deal would be slightly accretive, w/out impacting VFC’s dividend or our est. of ~$200M in repurchases for FY09.”

“Short-Term Potential Positive for ZQK, But Long-Term Impact Uncertain — The possible cash infusion for ZQK is important as the company needs to refinance its short-term debt, including $167 million which is uncommitted, and a $72 million facility due to mature in March 2009. However, with the possible sale of DC, we think Quiksilver could be losing its growth crown jewel.”
Quiksilver is currently up $.75 and VF $1.85 on the day.

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DC executives stay focused on plan

Relentlessly focusing on its five-year business plan to grow to $500 million in sales by 2010 allowed DC to nearly reach that goal in three years. It ended 2008 with $465 million in sales.

Focusing on the plan helped global sales grow 28 percent in 2008, including 26 percent in the U.S., despite the doom-and-gloom economic forecast, said Global President Nick Adcock and Mark Miller, Senior Vice President and General Manager, Americas.

Now, with parent company Quiksilver reviewing its strategic options and rumors about DC's future swirling, DC and its team is focusing on what it can control - the plan.

Nick and Mark outlined for me at ASR their plan to drive sales of DC in 2009 and their long-term vision for the company.
Brand halo

DC presented the 2009 integrated marketing and product plan to retailers in detail at ASR. At each sales station, a computer monitor played a presentation that outlined the far-reaching marketing initiatives and related product DC has planned for the year. All are designed to drive business for retailers, Mark said.

Two DC athletes have new shows on MTV this year: Rob Dyrdek's Fantasy Factory and Travis Pastrana's Nitro Circus. (Annual sales grew 56 percent the last time a DC athlete had a show on MTV). DC has packaged the products the two wear on their shows for retailers to carry in their stores. So a kid who wants to wear the same shoes as Rob Dyrdek can walk right into a store and buy them.

Other "product pacts" have been developed around DC founder Ken Block, who has turned into a Rally car star. A recent online video of him driving drew 15 million views in 45 days. A "Gold Standard" product pact relates to DC's plan to take over the Standard Hotel again during the X Games in the summer, and bring in retailers, athletes and contest winners from retail stores for several days of parties and events. Plus, there are new commercials for Fuel TV and MTV 2 featuring DC snowboarders.

"We are going for a brand halo," Mark said.

At trade shows, Mark said sales reps show each retailer the video presentation before any talk of orders takes place so retailers are clear about how DC plans to drive people to their stores.

The strategy is working, Mark said. DC picked up 40 new accounts at Surf Expo, and retailers are saying the same thing: "We need to carry stuff that people buy. ... We want what sells," he said.

The push appeared to work at ASR as well. Mark said two major retailers each boosted their DC orders by double digits, even though their overall buying plans were down. The booths were busy when I was there.

Ready to do business

Nick said DC was happy to be upstairs at ASR, away from the handshaking and back slapping that goes on in the aisles downstairs. DC had five rooms at the show, including one just for PR reps to talk about products with the media and another for "at once" orders. With five rooms, each part of the DC team had the space to get its work done, Mark said.

"We are communicating the sense, ‘We are here to do business,' " he said. "And we set ourselves up so we can do business."

DC added the "at once" room last September when it became clear that some retailers were cautious about future orders because of the slowing economy.

"We adapted to what customers want," Nick said.

At ASR, the room showed a wide range of products and DC offered an "at-once" incentive for retailers, which helped retailers boost their margins. Orders were entered into the system at the show and shipped immediately from DC's warehouse, often arriving at the stores before the retailers got home from the shows. By entering the orders live, products that sold out could be pulled from the display shelves at the show so availability was accurate.

Nick said DC did enough business in the "at-once" room in September to practically fund its entire show expenses.

Nick said he doesn't care much about all the hand wringing about trade shows these days.

"As long as the retailer is here, we will be here," he said.
Prepared sales force

Another area where DC is prepared to do business no matter the climate is its sales force, Nick and Mark said. DC put its entire sales force through a two-year boot camp that included training on selling, presentations, general business acumen and other topics.

The sales team "graduated" in November, at the height of the current economic crisis. The timing couldn't have been better, Mark said.

"Nobody panicked. Everybody was analytical about how they looked at problems," he said. And, the sales staff, which includes about 42 sales reps and executives, hasn't had any turnover.
The future

Nick said his team is focused on its plan and where it wants to go no matter the other issues going on.

The plan has been adjusted a bit because of the economy, of course - more on the SG&A side than revenue side - to be fiscally responsible, Nick said.

But DC is charging ahead with its global growth push and its vision, which is to be an action sports generalist. That means becoming a player in all categories and all sports in the action sports world.

"We are challenging ourselves in a different realm," he said.

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Bond Outerwear welcomes TJ Schneider to the family.

Bond Outerwear welcomes TJ Schneider to the family.
Bond Outerwear announces addition of TJ Schneider to the family.

January 25, 2009

Bond Outerwear is proud to announce the addition TJ Schneider to the family. TJ can be found wandering the globe this winter riding Bond Outerwear and working on The Snowboard Realms, which you can check out at tjschneider.com or on iTunes.

"We could'nt be happier to have TJ on the team. His level of dedication to the sport even beyond riding makes this a great relationship," states Dan McNamara, Co-Founder of Bond. "From his Snowboard Realms project, to his art, to his input on product and design, it is clear he shares the same passion and drive that we do for all aspects of snowboarding."

"I was super into the direction and story of the brand when I first heard about Bond, and I am stoked to get more involved with the company and help get it going." TJ adds, "the possibilities are endless."

Bond utilizes a top down sustainability model in its operations, and is a carbon neutral company. From the loom to your room, Bond looks to be a new model of sustainability for the snowboard industry.

Bond will produce a limited edition series of product that will be available at select retailers globally for the upcoming 2010 season beginning in July of 2009.

More information regarding news, team and product updates can be found by checking http://www.bondsnowboarding.com regularly.

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Gigi Rüf On Union Bindings

Union Binding Company is proud to announce the addition of TWS and Snowboarder Magazine Rider Of The Year top pick and all-around Austrian wild man Gigi Rüf.

Explosive execution and an undeniable eccentricity mark the riding of this Arlberg-born talent, not to mention prolific output. During the 2008 season, Rüf managed to film three video parts (Absinthe, Burton, and The Pirates) while many riders were hard-pressed to lay down one, in addition to scoring numerous magazine covers at publications worldwide. Gigi brings rare talent and originality to the Union Binding Family.

Says Rüf about the deal, “As soon as I strapped into the Contact binding, I knew Union was something special. Comfortable, reliable, super lightweight, and amazing performance, Union is the perfect binding for me!”
And according to Union Binding Company Team Manager George Kleckner, “This is really big for us, as we’re all huge fans of Gigi’s snowboarding. Considering the momentum of the Union brand, and where Gigi is in his young career, it’s a perfect fit.”

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