June 26, 2008
"A Hot Streak for Retailers"....The Heat is on for Surf Brands and Boardsport Retail
Analysis of:
A Hot Streak for Retailers | www.forbes.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Even in fashion, form follows function. The recent heatwave is adding to momentum in several key areas of summer apparel. New tank top styles in junior's, shorts, swim, sandals, and sunglass sales are all up as much as 100% over last year. Men's boardshort, tank top, sunglass, and short sales are seeing the same increases. In general, summer is "hot".....( I know, a bad pun). We are seeing it through retail sales in all of these categories. We have four stores in Orange Co / LA, wth about 50% of the branded mix in surf brands like Volcom, RVCA, Hurley, and Insight. We doubled the buys year over year, and are still selling out at regular price. Girls are buying shorts again, and premium denim brands , who got on the trend ( Frankie B. and Rock and Republic) are selling extremely well at $125.00. Considering the heat, long denim sales are at half of last year's rate, so the shift to shorts has maintained the brands' sales year over year. Whatever the reason "Summer is Hot"
Analysis: Boardsport companies, like Volcom, and associated retailers (Pacsun)are seeing the benefits of the demand for summer apparel. Sunglass brands ( Volcom just bought one by the way), swim brands, and sandal companies are also seeing increased business. I live in Huntington Beach, Ca and work in the action sport business. The general concensus, is that national demand is very strong. In fact, right now you can't get product. Brands are waiting for new deliveries in all of the summer categories. Two years ago year round product , especially denim in juniors, was dominant through second quarter. This year has seen a significant shift away from the former and straight into the summer classes. So, whether it's a response to the heat or the beginning of a new trend back to summer categories, the business is driving comps and profits.
Analysis: Boardsport companies, like Volcom, and associated retailers (Pacsun)are seeing the benefits of the demand for summer apparel. Sunglass brands ( Volcom just bought one by the way), swim brands, and sandal companies are also seeing increased business. I live in Huntington Beach, Ca and work in the action sport business. The general concensus, is that national demand is very strong. In fact, right now you can't get product. Brands are waiting for new deliveries in all of the summer categories. Two years ago year round product , especially denim in juniors, was dominant through second quarter. This year has seen a significant shift away from the former and straight into the summer classes. So, whether it's a response to the heat or the beginning of a new trend back to summer categories, the business is driving comps and profits.
Report a Concern
More GLG News in
Consumer Goods & Services
Most Popular:
Source Article | Expert Analyses
Austrian struggles to find strategic partner
uk.biz.yahoo.com
Small businesses fighting to survive
www.msnbc.msn.com
Is Microsoft's Vision of Search Enough to Catch Google?
www.businessweek.com
General Motors pulls sponsorship of Oscars
www.msnbc.msn.com
Target to Put More Focus on Value
adage.com
Austrian struggles as deadline approaches
August 25, 2008
Is Target (TGT) Missing the Next Retail War?
August 21, 2008
Limited (LTD), GAP (GPS), The Same Problem and Equally Mediocre Results.
August 21, 2008
Not All Business Is In A Declilne Because of the Economy
August 20, 2008
Is Tiffany's Growth About to Unwind?
August 18, 2008

