Stephen Murray, president of skateboard shoemaker Vans Inc. in Cypress, has taken on an additional title: president of parent company VF Corp.’s new Action Sports Americas Coalition.
Murray now is in charge of Vans as well as sandal maker Reef Inc. in Carlsbad.
Previously Vans and Reef, which makes surf-inspired sandals and clothes, were grouped with North Face, Eastpak and other brands in VF’s outdoor group.
“The biggest benefit is the separation of the brands into distinct and recognizable consumer segments,” Murray said. “It gives action sports its own voice within the organization and the industry. It will also be hugely positive for VF in terms of culture and focus, both in terms of ongoing operations and, potentially, our being more attractive to other brands from an acquisition (by VF) standpoint.”
VF has said it is looking for acquisitions in the downturn. The company was rumored to have looked at Huntington Beach-based Quiksilver Inc.’s DC Shoes brand.
Greensboro, N.C.-based VF owns a number of brands including Wrangler jeans, Nautica and 7 For All Mankind.
Vans has been one of the company’s strongest performers.
The largest skateboard shoe company by revenue, Vans saw sales rise 18% in 2008, according to VF, which doesn’t break out actual sales for Vans.
While many retailers are struggling, same-store sales at Vans company-owned
stores rose 8% for the year. Vans opened 20 stores during 2008, ending the year at 200.
Volcom’s Focus
Volcom Inc. of Costa Mesa, which designs clothes inspired by surfing, skateboarding and music, is focusing on growing its boardshorts business and a separate line of clothes for surf and skate shops called Stone Age, according to Volcom President Jason Steris.
“We looked at our existing business, at what our strengths are and where there are opportunities,” he said. “We are very strong in denim. We are not No. 1 in boardshorts. We looked at that and said, ‘let’s improve.'”
That led to the company’s “The Proving Grounds” campaign, where Volcom-sponsored surfers tested new boardshorts at the Volcom house in Hawaii.
The shorts are being marketed in magazines and online, including in Web videos about the Volcom house on stoneyour.tv, a Volcom site.
Volcom has been adding to the Stone Age line. It now has three or four styles in each product category, Steris said.
The company has increased marketing for Stone Age in the past four months in magazines and is investing in some racks for stores, he said.
While Stone Age is a separate collection with its own distinctive orange tag, it is not a new brand, Steris said.
“All the product still says Volcom,” he said.
Volcom recently cut 8% of its U.S. workforce, or 28 positions.
For the fourth quarter, Volcom sales were flat with a year earlier at $69.6 million. The company saw a net loss of $8.7 million, including charges for its acquisitions of retailer Laguna Surf & Sport and sunglass maker Electric Visual Evolution LLC in Costa Mesa and a foreign exchange loss. Without charges, Volcom earned $3.3 million, down 53% from a year earlier.
The company ended 2008 with $80 million in cash and no long-term debt.
Ambsn Moves to San Clemente
Up-and-coming surf brand Ambsn has moved to San Clemente from Central California and shortened its name from Ambission.
The company is small, with annual revenue of less than $500,000. Founders Dustin and Dylan Odbert have attracted a following.
Most notably, Aliso Viejo-based Surf Industry Manufacturers Association President Dick Baker and industry consultant and former Surfing Magazine publisher Bob Mignogna have taken the Odberts under their wings, helping the brothers firm up a business plan and offering other advice.
“They are two talented young guys who are completely committed to their business,” Baker said. “They also have great product. Their T-shirts are absolutely fresh and unique and different.”
Baker saw the appeal of the brand when the brothers sent some Ambsn shirts to Baker’s house. Baker’s two teenage boys loved the shirts, and lately, that’s all they wear, Baker said.
Dustin Odbert, 27, and Dylan Odbert, 23, moved south because they felt there were more opportunities to grow the brand and learn more about the surf industry from its global hub in Orange County. Plus, it’s a lot easier to reach vendors that make Ambsn’s products in Los Angeles, instead of having to drive four hours from Central California, Dustin Odbert said.
Stores that have ordered Ambsn goods include Costa Mesa-based The Closet, Thalia Surf Shop in Laguna Beach, Swell.com in San Clemente and Becker Surfboards, which operates six stores, including three in OC.
Getting a brand off the ground is challenging, according to Baker.
“Like any small brand, they need financing, infrastructure, a (manufacturing) strategy and all the rest that goes with it,” he said.
Montgomery is the founder of Shop-Eat-Surf.com, a business news Web site for action sports executives.
