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ASR Booms on Retail’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 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 initially doesn’t 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 has two 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, Von- Zipper USA sunglasses and Kustom surf shoes, and stores such as Honolua Surf Co., which also sells its own branded clothes.






Billabong’s Naude: ‘business as usual’ he says about buy of Xcel

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.


Increased Interest

It probably helped too that retail has seen an uptick of late after a period of hits and misses. Take Anaheim-based Pacific Sunwear of California Inc., which sells many of OC’s surf and skate brands. The retailer saw same-store sales rise 9.6% in August after struggling with weak sales the past year.

Joel Cooper, chief executive of Irvine-based Lost, said PacSun tested some of the brand’s swimwear for girls, which did well, and helped create some interest at the show.

“The launch of women’s swimwear helped elevate interest in our women’s sportswear,” Cooper said.

ASR’s opening day was Lost’s “busiest” day ever at ASR, Cooper said.

“It wasn’t kids,” Cooper said. “It was buyers looking to write orders.”

Lost also got a visit from teen clothing chain Everett, Wa.-based Zumiez Inc., which picked up Lost’s girls clothes. The brand was also recently given an award from department store Macy’s West for being one of its fastest-growing labels, Cooper said.

“We’re really doing well in retail,” he said.

Lost has seen some changes this past year, including a new president, and a restructuring in departments’ staff. Some 10 workers were brought in, Cooper said.


Usual Side Shows

Business got done, but it wouldn’t be ASR without the usual side shows.

There were lots of tattooed, body-pierced skaters trying tricks on vert ramps.

Loud music blared up and down the halls as girls modeled the newest bathing suits.

Costa Mesa-based Volcom Inc. kept a constant party by bringing in kegs of beer and setting up a band in one of its booths. Employees pushed a rocker theme to promote the company’s new record label.

Workers at San Clemente-based clothing maker Mada huddled close to owner Vince De La Pena to watch footage of the pro surf tour playing on his laptop.

Their eyes were glued to surfer Bede Durbidge, who Mada recently signed as its first pro surfer.

“Look, our logo was already flashed,” De La Pena said.

Mada’s men’s clothing collection continues to grow. The company plans to get the word out with a new national sales manager, who was recently hired away from Irvine-based Rusty.

New styles were all about bold primary colors and patterns, such as red, blue, green and stripes and plaid.

Striped board shorts and dresses will be big next spring, said Laura Thomson, sales rep at Roxy.

Roxy has shifted its clothing collection to more about fashion than basic T-shirts, she said. The line has fitted tops, jackets, skinny jeans, trouser pants and dresses.

“We’re growing up,” Thomson said. “We don’t put ‘Roxy’ on everything.”

Kids were the hit thing at Costa Mesa-based Hurley Inc., which is owned by Nike Inc.

The company’s line of clothes for babies and young boys up to 4 years old are “the fastest-selling thing we’ve ever had,” said Chief Executive Bob Hurley.

Actor Patrick Dempsey and model Heidi Klum have requested some styles for their baby boys, according to a Hurley spokeswoman.

Hurley spent the past year or so making changes so its clothes sell better at retail stores, the company said.

It added some girls and guys loungewear, which include tops and bottoms, and recently relaunched its Web site to include blogs and live video.

“Our mission was to upgrade product and we have,” he said. “(Stores) tell me it sells good and they show me in the numbers.”

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