Richard Samuel Cohen
CEO, St. John Knits International Inc.
Born in London, Aug. 27, 1954
Lives in Coto de Caza
Putting his mark on upscale women’s clothier whose name is synonymous with founding Gray family. Already brought big fashion feel by hiring execs from Calvin Klein, Hermes of Paris, U.S. arm of Italy’s Gruppo Ermen-geildo Zegna, from where Cohen himself was recruited.
The Grays,retired patriarch Robert, wife and chief designer Marie, daughter Kelly, who serves as creative director,found Cohen through headhunter. Has backing of 80% owner New York-based Vestar Capital Partners.
Came on in August, replacing co-chief executives Bruce Fetter, Kelly Gray. Fetter left earlier this year after running operations before Cohen came on.
Native of Britain. Says he came to company because of its “huge upside.” Plans include opening more St. John stores abroad, targeting younger women, transforming stores from ladies-who-lunch look to glamorous California.
Signed up a New York advertising firm to help revamp company’s image.
Looking to gain more sales,and profits,from handbags, wallets, other accessories.
Out to model company after world’s great fashion houses.
“Everything is evolving,” he says.
Closing window on company’s finances. Because of publicly held debt, St. John has reported sales, profits. Cohen refinancing debt, plans to quit reporting numbers.
Privacy may be welcomed as company wrestles with lower sales, higher costs with store openings, remodelings. Sales for first three months of year down 4% from a year earlier to $103 million. Net income off 18% to $5 million.
Hallmark knit suits are a staple of celebrities, socialites. Company employs 4,900 people, including 2,700 in OC. Largest apparel maker here by workers, one of few still to make clothes in OC.
Started his career in 1976 as a designer for Seattle-based London Fog. Learned ropes from designer Bill Blass, supervised distribution for London’s Burberry. Spent 16 years as chief executive of Gruppo Ermenegildo’s U.S. unit.
Calls himself a “brand builder.” Kelly Gray calls him “accessible,” easy to talk to.
Changes have caused some anxiety among workers, but blending well so far. Only has worked for family-owned businesses,Ermengildo Zegna is fourth-generation family business. Says he has no plans to take family out of St. John. Instead, wants to make family business more professional.
Only second executive from outside family. Hubert Mullions, who took over as chief executive in 2001, left after few months.
St. John, founded in 1962, no stranger to change. In 1989, Grays sold majority stake to Germany’s Escada, which took company public in 1993. Six years later, Grays took company private in $520 million deal financed by Vestar.
Married, four children ages 5 to 13. Enjoys golf, fine wine, dining.
,Jennifer Bellantonio
JAMES HENRY JANNARD
Founder, Chairman, CEO
Oakley Inc.
Born in Los Angeles, June 8, 1949
Lives on Spieden Island, Wash.
COLIN BADEN
President, Oakley Inc.
Born in Concord, Mass., March 27, 1962
Lives in Irvine
Company is old dog of OC’s action sports industry, working on new tricks.
The latest: Thump sunglasses with built-in digital music player. Jannard, company’s cigar-puffing visionary, calls it Oakley’s “most important” product yet.
Baden is tell-it-like-it-is design guy.
Both pushing apparel maker to go wider. In February, Oakley presented at New York’s Fashion Week for first time. Showed women’s line, marking subtle shift in recent years for decidedly macho company. Baden calls women’s wear “natural progression in the story of Oakley.”
Opened New York showroom in SoHo last year.
Sunglasses still king. Duo continues to push newer products (shoes, clothes, prescription glasses, watches). Some hits. Some misses, like casual shoes.
2004 sales of $586 million, up 12%. Net income of $42 million, up 9%. Newer products made up 56% of fourth-quarter sales.
Both urge workers to push design envelope at “mad scientist” product lab, led by Baden. Sales of combat goggles, glasses to the Army among company’s big sellers. Military sales grew by 60% last year to $27 million, with a big chunk coming from glasses, goggles. Expect-ing more growth this year.
Company looking to Thump to enter electronics with what it calls “wearable technology.” Recently teamed with Motorola to make RAZRWire sunglasses, which links to a wearer’s mobile phone.
“Technology is defining fashion,” Baden says.
Had share of ups, downs with stores. Continuing to build retail empire. Owns, operates 83 Iacon stores, 37 O Stores in U.S. Expects to add 20 more stores this year.
Shoes need some help. Sales declined 12% in 2004 to $32 million. Company says golf shoes, sandals, military boots are hits. Lifestyle shoes flopped.
Seeing struggles in Mexico, South Pacific, where sales declined 20% in 2004.
Overall 2005 sales projected to grow by 10% to 15%, driven by newer products. Last year struck pact to make glasses for Fox Racing.
Jannard, reclusive to extreme, rarely grants interviews. Camera phobic, though a photography buff himself. Raises “Oakley English Setter” show dogs. Company name taken from favorite dog breed. Splits time between OC, Spieden Island, Wash., a getaway he bought in 1997 for around $20 million.
Wife Bobbie, seven children. Loves drag racing.
Earlier this year, added as director Michael J. Puntoriero, former Arthur Andersen boss in OC before accounting firm’s implosion.
Baden’s charismatic, no-nonsense guy. Oversees design, graphics team, controls company branding. Partner at Lewis Architects of Seattle for six years prior, began advising Oakley on image in 1993. Says he’s overgrown “kid in need of therapy.” Describes Oakley garb as “science wrapped in art.”
In free time, likes to race Olympic class yachts, work with dad Mowry on public art projects here and in Canada.
Drives “completely-worked Hummer on the weekdays and a bad ass black Harley on Sundays.” Says he’s “addicted to rush of chasing a great design,” “always disappointed when it’s over.”
Wife Laura, two sons, 17, 8.
ROBERT BUCHNER
MCKNIGHT JR.
Chairman, CEO, Quiksilver Inc.
Born in Pasadena, Aug. 17, 1953
Lives in Laguna Beach (Emerald Bay)
Surfwear’s billion-dollar man up against biggest challenge yet.
Buying struggling French ski maker Skis Rossignol for about $320 million. Move sent worried investors scurrying. Shares initially saw 10% hit on deal. Some think Quiksilver overpaying for money-losing ski maker.
Hoping Quiksilver’s marketing, distribution muscle can revive Rossignol. King of surfwear, company became first to surpass $1 billion in yearly sales mark last year. Wants Rossignol so he can get even bigger.
“We asked, ‘how much bigger goldfish can we be?'” McKnight told Wall Street Journal. Rossignol deal “gets us out of that small pond.”
Quiksilver a lot more than surfwear these days. But Rossignol still a stretch into $40 billion yearly sporting goods market. Brings new rivals: Patagonia, Columbia Sportswear, North Face.
Initial plans call for making more clothes,jackets, ski pants and sweaters,with the Rossignol name. McKnight also says to look for Roxy skis, Quiksilver’s hot girls brand.
Gem could be Rossignol’s Cleveland Golf in Huntington Beach unit. Plans to pair it with Quiksilver’s Fidra golf clothes line.
McNight’s charismatic, easy-going surfer. So far has rode ultimate wave,growing big, staying cool. Recently raised 2005 outlook, now projects sales of about $1.48 billion to $1.5 billion. Rossignol buy could push sales to $2 billion.
Continues to diversify. Last year bought Vista-based DC Shoes. Now makes everything from bikinis, boardshorts to golf wedges.
Retail push also big for McKnight. Recently bought Australia’s Surfection, which owns 12 surf shops, including five Quiksilver Boardriders Clubs in Australia. Surfection shops set to become Quiksilver Boardrider Clubs, which make up bulk of company’s 400 stores. Others include Roxy stores, Hawk Clothing, Quiksilver Youth.
Retail push includes opening Boardriders Club stores in Japan, China, South East Asia. Asia helped drive big gains,sales there rose 92% in three months ended Jan. 31 to $51 million. Total sales jumped 34% to $343 million for period, surpassing analysts’ expectations of $318 million.
“Surf City” headquarters now spans 700,000 square feet, including warehouses. Features big-wave video displays, stadium seating conference room, surfboards, custom rattan furniture.
McKnight’s office sits on second floor above lobby, like lifeguard tower. Says his primary role is refining company’s message. Says Quiksilver can become global conglomerate, stay core.
Sticks by friends. Asked high school buddy, owner of Laguna smoothie, sandwich joint Orange Inn to open stand inside headquarters. Wanted to give workers,mostly surfers, skaters,healthy food. Eatery now a place to brainstorm, he says. His favorite: albacore, avocado sandwich, fresh-squeezed orange juice, smoothies.
Founded Quiksilver USA as boardshorts maker in 1976 with Jeff Hakman, Aussie who he met in Bali. Pair moved to OC that year. Bachelor’s in business from USC. Described himself as “spoiled rich kid in college.” Drove Porsche, made surfing films in spare time. Was set to work for dad after college. Turned to plan B after dad’s company went under.
Company now spans juniors, middle-aged surfers, boys, girls, toddlers. Along with media ventures, marketing geared toward surfing events, magazines, apparel publications, Spin, Rolling Stone.
Still finds time to hit waves on custom surfboards, or links with buddies surfer Kelly Slater, Fidra line designer John Ashworth. Company has travel division, full-time boat dedicated to finding surf spots.
Director, Surf Industry Manufacturers Association (also its first president), Ocean Institute.
Wife Annette (New Zealander he met, along with Hakman, on 1973 trip to Bali), three children. Lives on beachfront Laguna home. Recently bought land on Hanalei Bay in Kauai. Enjoys surfing, snowboarding, tennis, golf, softball, volleyball, diving.
,Jennifer Bellantonio
SETH RUSSELL JOHNSON
CEO
Pacific Sunwear of California Inc.
Born in Minneapolis, Dec. 10, 1953
Lives in Laguna Beach
GREG H. WEAVER
Executive Chairman
Born in Paterson, N.J., Jan., 17, 1954
Lives in Cowan Heights
King of teen fashion, handpicked successor.
Weaver, an “information junkie,” who’s walked malls, done focus groups, surveyed stores to keep on top of fickle teen tastes. Built retailer power by selling surfwear,mostly from OC,urban styles, to Middle America. Business Journal’s 2003 businessperson of the year
Exhaled in October, when he brought on Johnson, former No. 2 guy at Abercrombie & Fitch. Set goal to retire at 50 (he’s 51). Passed CEO reins, became executive chairman in April, focused on strategy. Works at HQ couple days a week.
Johnson faces challenge: keeping booming surfwear retailer on a tear. 2004 sales of $1.2 billion, up 18%. Net income of $107 million, up 33%.
But past performance harder to beat. Sales at stores open at least a year grew by 4.8% in March, missing analysts’ expectations of 8%, well below double-digit gains of past few years. Wall Street frowned.
PacSun stores sell surf, other West Coast fashions in malls nationwide. Playing both coasts: growing d.e.m.o. stores sell urban hip-hop styles, such as Russell, Kimora Simmons’ Phat Farm, Baby Phat, P. Diddy’s Sean John line.
Hedging bets: urban wear only real challenger to surfwear’s hold on teens. Same-store sales at d.e.m.o chain up 4.3% in March. PacSun stores up on a 4.9% rise.
Company has more than 1,000 stores, bulk being PacSun. Sticking with ambitious growth plans,eyeing 1,400 stores by 2007. Expects to have 120 more stores by end of 2005. Includes 70 new PacSun stores, 10 PacSun outlets, 40 d.e.m.o. stores.
Third chain of stores in works.
Johnson has track record of growing chains, even during tougher times. Says he’s not likely to be as chatty with Wall Street as Weaver. Says he likes to “delve down in the details of the business.”
Attended Yale University, earned a master’s in business administration at University of Chicago. Worked for Dayton Hudson (now Target), Batus Retail Group, Limited, Abercrombie’s former parent. Became Abercrombie’s financial chief in 1992, before it went public. Was named chief operating officer in 2000.
Said he grew tired of playing second fiddle at Abercrombie. Resigned in June. Then Weaver asked him to dinner. They hit it off.
Weaver had sought replacement for past few years. Tired of 14-hour workdays, grueling travel.
Spent 18 years at Pacific Sunwear. Now works mostly on new chain company is developing, counseling Johnson.
Weaver grew up in Connecticut, joined company in 1987 as operations VP. Held positions of senior VP, executive VP, COO, president. Succeeded Michael Rayden as CEO in 1996, became chairman in 1997.
Earlier, was employed for 13 years by Jaeger Sportswear in operations, merchandising for U.S., Canadian stores. Not married. Enjoying newfound freedom, wealth he’s earned. Working out (lost 22 pounds). Looking to buy second home, maybe third. May look to serve on corporate boards.
Johnson has wife Sharon, two daughters, Melissa, 16, Kelsey, 12. Enjoys tennis, golf.
HONORABLE MENTIONS
RAJ BHATHAL
Chairman, CEO
Raj Manufacturing Inc.
Bob Hurley
CEO, Nike Inc.’s Hurley International LLC
Paul Naude
President, Billabong USA
todd scarborough
President, Apparel Group, Ennis Inc.
PIERRE ANDRE
SENIZERGUES
CEO, founder, Sole Technology Inc.
Ivan Spiers
Owner, n’Zania LLC
