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ASR Booms on Retail Sector’s Uptick

There was a buzz at the recent Action Sports Retailer Trade Expo held in San Diego.

But this time the whispering in the aisles wasn’t fueled by the beer and bikini-clad babes.

Irvine-based Billabong USA had people talking with its parent’s acquisition of wet suit maker Xcel International, announced a day before the show opened. Terms of the deal weren’t disclosed.

Paul Naude, Billabong president, said he doesn’t initially plan to change that much at the Oahu, Hawaii-based wet suit maker, which was started in 1982 and has distribution and sales offices in Huntington Beach. Xcel also has two retail stores in Hawaii.

“For now it’s business as usual,” Naude said. “As we do with all acquisitions we try and add to the business where it’s needed.”

Billabong has been building its portfolio, which includes brands Element skateboard clothing, VonZipper USA sunglasses and Kustom surf shoes, and retail stores such as Honolua Surf Co., which also sells its own branded clothes.

Billabong’s booth at the three-day show was packed. Buyers and media types wanted to get a look at what’s hot: vintage floral dresses and tops in cool prints, such as plaid and paisley.

“Dresses are super popular,” said Tara Ventimiglia, Billabong public relations manager. “The fabrics are lightweight. Linen is popular.”

Billabong girls also added some accessories to its collection, including travel cases, overnight and beach bags and new hats.

The show featured more than 750 brands showing off their latest gear for spring 2008.

ASR organizers said it was their largest show in more than five years, with 20,000 attendees and some 7,000 buyers from boutiques, department stores and retail chains.

“The large increase in buyers, brands and events for this show proves that ASR is an increasingly relevant part of the industry’s business schedule,” said show director Andy Tompkins.


For more on this story, see the Sept. 17 issue of the Business Journal.

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