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Quiksilver, PacSun Don’t Dampen Annual ASR Party

The vibe at the recent Action Sports Retailer Trade Expo in San Diego was lively, despite some sobering news from the surf industry’s biggest name.

On the show’s opening day, Huntington Beach-based Quiksilver Inc. said profits for the three months ended July 31 dropped 78% from a year earlier to $5 million, mostly because of weak sales at Skis Rossignol, which the company bought last year.

The company also lowered its outlook for the current quarter, mainly due to slow sales of golf gear at Cleveland Golf, which came as part of the Rossignol buy.

The news hit a few days after struggling Anaheim-based Pacific Sunwear of California Inc., the biggest seller of surfwear at mall stores, posted a 9.4% drop in August same-store sales, worse than Wall Street had expected.

The chatter about the news did little to dampen the parties at ASR, an annual bash that’s part tradeshow, part debauchery for clothing makers inspired by surfing and skateboarding (see photos, page 17).

“I don’t see it as a long-term situation,” Andy Tompkins, ASR group show director, said of the woes at Quiksilver and Pacific Sunwear. “There’s a lot of interest in this market.”

Throngs of buyers and media types clogging the aisles, particularly on the first day of the show, seem to serve as examples of interest in the sector.

ASR drew thousands of people checking out some 500 brands in about 1,500 booths.

Greg Osthus, vice president of sales, marketing and merchandising at Irvine-based clothing designer Lost, said business at his booth was “off the charts.”

Warm weather has fueled strong sales this summer and is motivating buyers, Osthus said.

“They’re just on an emotional high right now,” he said.

Paul Harvey, brand manager at Irvine-based Rusty Apparel, said the company opened “some new key retail accounts” at the show.

Rusty officials also used the show to fill in people about its recent sale. Rusty company founder Rusty Preisendorfer recently sold a controlling stake and trademarks to the company’s Australia licensee Rusty Australia/Vegas Enterprises.

Rusty Australia has done a great job building the brand Down Under in the past 20 years, Harvey said.

The brand has struggled a bit in the U.S.

Rusty spent most of last year regrouping and hiring workers in a bid to revamp marketing and jump-start sales.

Irvine-based C & C; Cos., which makes Rusty clothes and accessories under license, continues to handle the work but now reports to Rusty Australia, Harvey said.

The Aussies will help bring a “global unified look to the brand,” Harvey said. “That’s the plan for the future.”

Stripes, nautical-themed clothing with anchors and dresses were among the hottest trends at ASR, where clothing makers were showing off their spring collections.

Irvine-based Split continues to expand its women’s dresses, some of which had oversized pockets on the side.

Several brands rolled out clothes for kids and babies.

Quiksilver showed clothes under the Quiksilver and Roxy brands for kids starting at 12 months old.

Costa Mesa-based Volcom Inc., whose employees were dressed like cavemen, debuted its clothes for boys ages 4 to 7. The line has a lot of the same labeling and styling as Volcom’s men’s clothes.

Volcom’s new sandals, slip-on shoes and women’s swimsuits have “gone over really well,” Chief Executive Richard Woolcott said.

“A lot of shops are really excited about it,” Woolcott said of Volcom’s new bikinis.

Meanwhile, Costa Mesa-based Hurley, part of Nike Inc., is pushing its line of kids’ clothes, which came out in the summer. The collection includes sizes for babies, starting at six months. It’s made with licensee New York-based Kids Headquarters, part of Wear Me Apparel Corp.

Dan Levine, Hurley’s vice president of new business development, said sales have been strong even though the kids’ market is “tough” with a lot of “big competitors.”


More WunderMarx

WunderMarx, a public relations shop, recently moved to bigger space in Tustin after hiring a few workers and picking up work.

President Cara Good said WunderMarx, previously in Laguna Beach, needed more elbowroom and wanted to be closer to clients, which mainly are in Irvine.

“We wanted an office with room to grow, and we found that in our new space,” Good said.

WunderMarx recently hired two workers, bringing its staff to seven. George Pappas was tapped as senior media relations specialist and Laurel Carman as marketing assistant.

Bits and Pieces:

London-based surfwear maker Hot Tuna International PLC, which has offices in Costa Mesa, recently inked a sponsorship deal with pro surfer Bron Heussenstamm, who’s featured in international Pepsi commercials. Under the deal, Heussenstamm will wear Hot Tuna garb, participate in events and help with marketing and product development Newport Beach-based Ruby Restaurant Group is promoting a new diner that recently opened on the Morongo Indian Reservation in Cabazon,a first for Ruby’s. The Morongo Band of Mission Indians signed a three-year management agreement.

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