It looks like teens saved the day again,at least for two big Orange County retailers.
Wall Street was nervous that hurricanes and rising gas prices might drain shoppers’ extra cash and knock the wind out of back-to-school sales, one of the most critical times for stores.
But Anaheim-based Pacific Sunwear of California Inc. and Foothill Ranch-based Wet Seal Inc. both posted gains last month.
At PacSun, same-store sales grew 5.3% from a year earlier for the five weeks ended Oct. 1. Total sales, including for stores open less than a year, were up 15% to $113.7 million.
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Picture from Wet Seal’s site: thinking holiday sales |
The company, which operates nearly 1,000 mall stores, lures teens with trendy clothes and other garb from several popular local surf brands, including Huntington Beach-based Quiksilver Inc., Costa Mesa-based Volcom Inc., O’Neill Clothing and Billabong USA, both in Irvine.
Meanwhile, Wet Seal said sales at stores open at least a year jumped 45% in September, surpassing Wall Street expectations of about 30%. The company’s net sales for the five-week period ended Oct. 1 grew 16% to $48 million.
Wet Seal continues to turn corners.
A judge recently dismissed a class action lawsuit alleging securities fraud by the company and several of its former directors and officers.
In the past few years, Wet Seal has undergone a massive restructuring, including refinancing, closing some 150 Wet Seal stores and axing its 31-store Zutopia clothing division. The company now has 307 Wet Seal and 92 Arden B. stores.
“The continued success of our new merchandising strategy in the Wet Seal business led to our ninth consecutive month of comparable store sales growth,” said Chief Executive Joel Waller in a statement.
To lure more shoppers, Wet Seal lowered its prices, increased its selection of clothing and accessories, and made more frequent deliveries of new stuff to its stores, the company said.
Now eyes are on the holidays.
“September showed that the American consumer will still pay for fashion,” Eric Beder, analyst at Brean Murray & Co. told Reuters. “The question is whether that will go forward.”
The National Retail Federation said earlier this month that it forecasts a 5% jump in holiday retail sales versus last year to $435.3 billion.
The average consumer plans to spend $738.11 in November and December, up 5.1% from the previous year, according to the federation’s 2005 Holiday Consumer Intentions and Actions Survey, which is conducted by consumer market research firm BIGresearch LLC.
PacSun and Wet Seal already are trying to entice shoppers with marketing.
On Wet Seal’s redesigned Web site, the company is promoting “comfy, cozy” sweaters. There’s a picture of a young girl wearing one, and above her it reads: “New stuff. Get it. Wear it. Flaunt it.” Wet Seal also is offering free shipping on purchases of $60 or more.
Meanwhile, PacSun has its own promotions.
The company’s Web site, which says “Warm up for winter,” has a photo of teens wearing cool sweatshirts and other garb from OC brands, such as Costa Mesa-based Hurley International LLC, part of Nike Inc.
It’s offering $20 off select jackets and free shipping on orders of $75 or more.
Oakley’s ‘Community Project’
OC’s surfwear companies continue to delve deeper into entertainment.
Volcom has its Veeco Productions and Volcom Entertainment for music and videos. Quiksilver has an entertainment division that’s signed some movie and book deals. Billabong has sponsored some big films, such as “Blue Crush,” a flick about women surfers.
Now, Foothill Ranch-based Oakley Inc. wants in on the action.
The maker of sunglasses, clothes and other garb recently launched 1242 Productions Inc., a film production company that will promote board sports, such as snowboarding and surfing, and its athletes.
Its first release: “The Community Project,” is a snowboarding flick filmed at hot snowboard spots worldwide. Some of the athletes included are Travis Rice, JJ Thomas and Zach Leach.
The film, sponsored by Oakley and Red Bull, is the first of three, the company said. It’s being sold at Oakley retailers, Ally distribution, Champion Visions and Method Media, among others. The price: $30.
Oakley is showing the film at some theaters and colleges. It also launched a Web site, www.community-project.com, that has details about the film.
