SPECIAL REPORT: OC 50 – Apparel
Profiles of the County’s most influential business people
KATHLEEN ARDEN BRONSTEIN
Vice Chairman, CEO,
Wet Seal Inc.
Born in Miami, Sept. 17, 1951
Lives in Newport Coast
One of OC’s most prominent female chiefs.
Her company is hot,shares have doubled in the past year,bucking one of the toughest retail markets in a decade. Mode of operation: constant fine-tuning to stay ahead of fickle, trendy customers. Relies on instinct, years of experience.
Plans to open up to 100 stores across three divisions this year, revamp older stores, weed out unprofitable ones. Junior-focused Wet Seal set to see biggest boost with at least 50 new stores, followed by Arden B., seller of contemporary women’s apparel. Preteen retailer Zutopia bought last year from Gymboree Corp.
Runs 573 stores in all, employs more than 500 in OC. Sales of $602 million for the 12 months ended Feb. 2, a 5.3% rise. Fourth-quarter profits jumped 19% to $15 million.
Took a beating in 1999 after ill-fated stab at khakis and polo shirts.
Bronstein continues to breathe new life into retailer even as hands-on exec looks to delegate more. “She doesn’t suffer fools gladly,” says chairman and 20% owner Irving Teitelbaum.
Bronstein describes herself as tough but fair.
Overhauled management with new blood, including: Walter Parks, EVP, chief administrative officer; Steven Strickland, senior marketing, creative VP; Greg Scott, president of Arden B.; Susan O’ Toole, Zutopia president.
Calls it “rewarding” to add people who know things beyond her expertise but think like she does: “They’re proactive, aggressive and not afraid to spend money to make money.”
Company, which has more than $100 million in cash at recent check, can afford to “invest in ourselves and our future,” she says.
Plans to relaunch Wet Seal catalog this summer, keep converting Contempo Casuals into Wet Seals.
Seventeen-year company vet always well-dressed. Started career as assistant buyer of junior belts for small chain, still loves to “play with the clothes.” Bachelor’s in advertising from University of Florida, Gainesville. Divorced. Daughter Arden. Enjoys golf, tennis, “life in general.”
,Jennifer Bellantonio
ROBERT E. GRAY
Co-founder, Chairman, CEO,
St. John Knits International Inc.
Born in Minneapolis, Oct. 14, 1925
Lives in Newport Coast
Debonair patriarch never did get a chance to retire in 2001.
Company’s coveted fashions have made Gray like a rock star among the socialite set.
The 76-year-old chairman reassumed chief executive’s role last year after Hugh Mullins left just months after being appointed.
Mullins, an OC50er last year hailing from Neiman Marcus, said switch from retail to wholesale wasn’t as expected. “Difficult for someone from the outside to understand” tight-knit family business, Gray says.
Daughter Kelly and Bruce Fetter, both co-presidents, being groomed as co-CEOs. St. John stock took hit five years ago when Kelly, also creative director and signature model, was named president at age 29.
Company taken mostly private in 1999, in part due to differences with Wall Street.
Reported sales of $370 million for 12 months ended July, up 13%. Workforce up 2% to 4,500 workers last year, including 3,000 in Irvine. First quarter saw 13.1% drop in sales vs. year ago.
Has 25 boutiques, opened stores in Troy, Mich., Houston last year. Plans to open five more this year in San Francisco, Tampa and Orlando, Fla., San Jose and Short Hills, N.J. Also operates 10 outlets, four home furnishing stores.
Company, which makes 90% of product itself in Irvine, counts several lines: knitwear, sport, shoes, accessories, fragrance and coats. Look for launch of handbags, more shoes in November.
Fashion model and “Queen for a Day” TV show hostess Marie Gray used St. John as stage name, founded company in 1962 in San Fernando Valley. Then-fianc & #233; Bob (a USC grad and son of a Hollywood stuntman) provided marketing help.
Marie hoped to sell enough dresses for a wedding and honeymoon in Hawaii. Couple recently celebrated 40th anniversary, both of marriage and company.
Grays moved business to OC in 1973. In 1989, sold 83.5% stake to Escada AG, which cashed out in 1993 IPO.
In 1997, expanded Irvine facility. Opened Tijuana plant for accessories in 1998.
1999’s $520 million reorganization, backed by New York’s Vestar Capital Partners, kept Gray in control.
Family owns 15%, Vestar 78%. Former public shareholders hold 7%. Bob Gray enjoys boating.
Two sons from prior marriage: one’s a clergyman, the other, Michael Gray, former St. John president, now founder, CEO, Sweet Life Enterprises.
,Jennifer Bellantonio
JAMES HENRY JANNARD
Founder, Chairman, CEO,
Oakley Inc.
Born in Los Angeles, June 8, 1949
Lives on Spieden Island, Wash.
Fashion iconoclast, cigar-puffing entrepreneur who has crafted company mystique in part with Batcave-like Foothill Ranch HQ. Turned commodity,sunglasses,into high-tech accessory. Splits time between OC and Spieden Island, Wash., a getaway he bought in 1997 for around $20 million. Once called “Safari Island,” Spieden was a hot spot for big game hunters. Jannard stopped all hunting and made saving rare Ryuki sika deer his personal game.
Faced big hiccup last year when ties with retailer Sunglass Hut hit the rocks. Retailer sharply cut back on Oakley gear after being bought by Italy’s Luxottica Group, an Oakley rival.
The two made peace with three-year pact to again offer Oakley at Sunglass Huts (shipments resumed in late December). Drama made for tough going on Wall Street.
Encourages staff to push design envelope at “mad scientist” product lab. After initial flop on spacey designs, shoes launched in 2000 now are profitable,and hot. Sales nearly tripled to $30 million last year, fueled by sandal line.
Look for new products: prescription frames (the line has shown double-digit growth for the past three years); sunglasses; wristwatches; sandals and other footwear; and men’s and women’s apparel. Company plans to release about 116 styles this spring, up from 75 last year. Opened two stores and two Vaults (outlets) last year. Plans are to open eight more stores this year, bringing total to 15.
Sales rose 16.8% to $109.6 million for the quarter ended March 31. Net income down 38% to $5.6 million. Company said profits hurt by discounts, shift to more footwear and apparel, which carry lower profits than sunglasses.
Acquired sunglass seller Iacon last year. Struck new retail pacts, including with Macy’s West and Parisian’s, a Southeast department store chain. Also expanded ties with Sport Chalet, Foot Locker, other specialty stores.
2001 sales were up 18.1% to $429.3 million. Net income was $50.4 million, up from $51.1 million
A reclusive to the extreme, Jannard rarely grants interviews, is camera phobic. Raises “Oakley English Setter” show dogs. Company name taken from favorite dog breed.
Oakley, which counts about 2,000 workers, sells in more than 70 countries. Runs 11 global offices, 12 including OC HQ.
Jannard began in 1975 peddling motorcycle handle grips from a station wagon, moved to goggles and then sunglasses. Took company public in 1995.
Wife Bobbie, seven children.
,Jennifer Bellantonio
ROBERT B. MCKNIGHT JR.
Chairman, CEO,
Quiksilver Inc.
Born in Pasadena, Aug. 17, 1953
Lives in Emerald Bay
Charismatic, laidback surfer has defied odds by growing big, staying cool.
Company, now a colossus, has kept cachet. McKnight, observers say, is the reason.
“He’s still just a surfer, yet he’s the head of the world’s biggest surf brand,” says legendary surfer Pete “PT” Townend.
Survival chalked up to integrity, humility, savvy in business known for partying, wipeouts. Could have new source of competition with Nike’s recent Hurley buy.
Expanding retail arm, growing brands such as Roxy, Hawk Clothing. Recently launched golf line with edgy surf-meets-links catalog.
Counts about 270 stores (company-owned and licensed), plans to open up to 30 more this year in U.S., Europe,slightly lower than planned due to Sept. 11, sluggish economy.
Designs, makes surfwear, extreme sportswear, casual, golf wear and snow apparel. Wares sold in surf shops, specialty, department stores. Has Boardriders Clubs, and a Youth store in the U.S., elsewhere,calls them “image platforms and profit centers.”
For 12 months ended October, sales up 19% to $615 million (Europe drove growth). Still growing, despite retail slowdown: sales for three months ended Jan. 31 jumped 20% to $145 million. But profits slipped 17% to $3.1 million.
Sticks by friends. Asked high school buddy, owner of Laguna smoothie and sandwich joint Orange Inn to open stand inside company’s flashy Surf City headquarters.
Wanted to give workers,mostly surfers and skaters,healthy food. Eatery now a place to brainstorm, he says. His favorite: albacore, avocado sandwich, fresh-squeezed orange juice, smoothies.
Surf palace HQ,complete with big-wave videos, stadium meeting seating, surfboards, custom rattan furniture,continues to grow. Has about 900 local workers. McKnight’s office sits on second floor above lobby, like a lifeguard tower.
Company took extra 112,000 square feet formerly held by Boeing to stock and distribute shoes, store tradeshow gear, blank T-shirts. Also moved Fidra golf division from Santa Ana to Surf City campus.
Quiksilver brand started in 1969 by Aussie surfers Alan Green, John Law. Quiksilver USA founded in 1976 by McKnight and Jeff Hakman as boardshorts company. Now spans juniors, middle-aged surfers, boys, girls, toddlers. Marketing geared toward surfing event sponsorships, exposure in surfing mags, apparel pubs as well as Spin, Rolling Stone.
Still finds time to hit waves on custom surfboards, or the greens with buddies surfer Kelly Slater, Fidra line designer John Ashworth.
Bachelor’s in business from USC. Director of Southern California Entrepreneurship Academy, Surf Industry Manufacturers Association (also its first president), Orange County Marine Institute.
Wife Annette (met, along with Hakman, on 1973 trip to Bali), three children. Enjoys surfing, snowboarding, tennis, golf, softball, volleyball, diving.
,Jennifer Bellantonio
GREG H. WEAVER
Chairman, CEO,
Pacific Sunwear of California Inc.
Born in Patterson, N.J., Jan., 17, 1954
Lives in Cowan Heights
Head of specialty retailer mounting comeback after first drop in profit, same-store sales in years in 2001. “It’s painful to say the least,” Weaver said.
Stores sell casual apparel, accessories, shoes for teens, young adults. Wants to jumpstart lagging men’s pants, shorts, retool marketing toward growing girls’ segment.
Has brought in new brands in past year, including Hurley, Dickies, Globe Shoes and apparel.
Casual but polished, straight-talking. Regularly visits stores, talks to teens. Spends 10% of roughly $300 million merchandising budget testing new products.
Holds open house for vendors every Wednesday at Anaheim HQ. Taps big names such as Quiksilver on what will be hot.
Sales per square foot of $408 are one of the highest among specialty retailers.
Has 740 stores in 48 states and Puerto Rico (up from 209 at the end of 1996). Stores include 102-unit d.e.m.o chain, aimed at a broader, more urban, market of males 12 to 29.
Has toned down ambitious expansion (opened 135 new stores last year) due to retail slump. Company expects to open 75 stores this year, expand 30, down from about 125 to 130 new stores annually the past couple of years.
This year, company, which has 2,700 workers, moved to a new, larger $36 million facility in Anaheim, designed to serve 1,500 stores. Focused on leasing, expanding stores to grow girls’ business, which has evolved from being “tom-boy driven” to more “feminine, fitted and colorful.”
Weaver, who grew up in Connecticut, joined company in 1987 as VP of operations. Held positions of senior VP, executive VP, COO and president.
Succeeded Michael Rayden as CEO in 1996, became chairman in 1997.
Earlier, was employed for 13 years by Jaeger Sportswear in both operational and merchandising capacities for the U.S. and Canadian stores.
Single. Likes to exercise. Enjoys traveling, including to Africa and Australia.
,Jennifer Bellantonio
