Person to Watch
Edmond Thomas
Thomas had a busy year, to say the least. In the months after we pegged him as one to watch, he helped the Foothill Ranch-based Wet Seal emerge from bankruptcy in April with a pared-down lineup of 171 stores and under the ownership of Mador Lending LLC, an affiliate of Philadelphia-based private equity firm Versa Capital Management LLC.
Wet Seal filed for Chapter 11 protection in January, a week after closing 338 stores and laying off 3,695 full- and part-time employees. It secured a stalking-horse deal from Los Angeles-based B. Riley Financial Inc. that Versa outbid during a two-day bankruptcy auction in March.
It was Thomas’ third and perhaps last stint as the apparel retailer’s chief executive, with more than 12 years with the brand. He moved on in October to Irvine-based Tilly’s Inc., where he replaced Daniel Griesemer as chief executive and president. Thomas isn’t a newbie there, either—he served in a similar role at Tilly’s from September 2005 to October 2007—and appears to be setting his own course.
“The teen retail landscape has never been more challenging, but I believe Tilly’s has significant potential, and I feel I am in a unique position to help achieve that potential,” he said during a recent earnings call. “I believe there are opportunities to strengthen inventory management, drive additional growth through our online and digital capabilities, improve the productivity of our real estate portfolio, and lower our cost structure.”
Company to Watch
Volcom Inc.
Paris-based Kering’s latest quarterly financial report described Volcom Inc. as “nearly stable, with strong resilience in wholesale, against still adverse action sports market in the US.”
The fashion house, which also owns the Puma, Bottega Veneta and Gucci brands, combines the Costa Mesa-based action sports apparel manufacturer’s revenue figures with those of its sister brand, Electric in San Clemente. Together, they accounted for $141.2 million in revenue in the first half of the year, up 15% over a year earlier and “driven by strong e-commerce,” according to Kering.
The parent company implemented several changes in 2013 and 2014 and recently replaced Chief Executive Jason Steris—a 22-year Volcom veteran—with Todd Hymel, who also is chief executive of the Action Sports Brands division at Kering.
“Efforts made around the strengthening of products and marketing, adding top talent across the company, and implementing a global [organization] structure has led to improved revenue momentum in all regions,” the company said in its 2014 Reference document issued in May. “Volcom has experienced positive sell-through in wholesale distribution and has continued to gain market share in core retail accounts.”
The brand also “drove significant operational improvements through streamlining business operations,” implementing a Product Lifecycle Management system and “tightening SKU counts to improve product performance.” It focused on expanding its direct-to-consumer business by launching e-commerce websites in Europe and Australia and opening five stores in France and the United States in 2014 for a total of 52.
Volcom also “continues to make significant investments in resources, marketing and operations in the Asia Pacific and Latin America regions, which are key markets for the Volcom brand and provide potential growth opportunities,” according to Kering.