Big promotions continue at Orange County retailers after the holidays.
Foothill Ranch-based Wet Seal Inc., which sells clothes for teen girls and young women, is touting discount shipping and an “after party sale” on it Web site, where prices on sweaters and other tops are slashed.
The big reason: There weren’t as many holiday shoppers as predicted.
“December ended with a thud,” wrote analyst Eric Beder at Brean Murray, Carret & Co. in a recent report. “The final big push for most of the apparel sector did not play out with the worst negatives occurring in the fashion sector.”
Analysts are blaming warmer weather across the nation in part for the lukewarm response.
Same-store sales in December at Wet Seal were up 1.3%, at the low end of its 1% to 3% forecast.
Anaheim-based Pacific Sunwear of California Inc., which has been trying to reverse falling sales, saw more of the same.
Same-store sales dropped 3.2% in December, slightly steeper than Wall Street’s forecast. There was a 2.1% decline at the company’s surf-inspired PacSun chain and a 9.4% drop at d.e.m.o., which sells urban and hip-hop style clothes.
PacSun girls’ apparel sales were down mid-single digits, with poor sales of fashion denim pants and knit tops, spokesman Gar Jackson said. Better sellers: long sleeve T-shirts, basic denim and capri pants.
Meanwhile, sales of clothes for guys were up low-single digits, with fleece and jackets among the stronger sellers, Jackson said.
Shoes and accessory sales still were down but improved slightly, he said.
Clothing sales for both men and girls at d.e.m.o. were down, Jackson said.
Expect PacSun to continue promoting its spring clothes, which it started to roll into stores in December, Jackson said.
“(We) were pleased with the initial read,” he said.
OC retailers mirrored a national trend of mixed sales. Philadelphia-based Urban Outfitters Inc. saw a 5% drop in same-store sales for December. New Albany, Ohio-based Abercrombie & Fitch Co. was down 1%. Warrendale, Pa.-based American Eagle Outfitters Inc. was up 13%.
Wet Seal expects to see more shoppers this month, Chief Executive Joel Waller said in a statement.
The chain saw a “double-digit increase in gift card sales” in December, he said.
“This should provide an increase in sales when cards are redeemed in January,” Waller said.
ASR Holiday: Take Two
Action Sports Retailer Trade Expo tested out a tradeshow last year and is set to hold it again.
The San Juan Capistrano-based company said it plans to hold ASR Holiday on May 23 and 24 at the Orange County Fairgrounds in Costa Mesa.
The show debuted in 2006 and featured several of OC’s surf and skate brands, including Lost International LLC of Irvine and Huntington Beach-based Cult Industries USA.
There were buyers from a slew of OC shops, including Jack’s Surfboards in Huntington Beach, Torrance-based Becker Surfboards, with stores in Mission Viejo and Corona del Mar, and Anaheim-based Pacific Sunwear.
“Last season’s holiday show proved that there is a demand,” said Andy Tompkins, ASR show director. “We are working with action sports brands to provide the best platform to showcase their creative and growing holiday product lines in a location and time that is convenient to buyers.”
Holiday sales have become more important for action sports retailers, surpassing spring sales in some cases, according to ASR.
The holiday show lets retailers see several brands at one time instead of having to review lines in their stores when they’re just starting to hustle with summer vacation buyers, ASR said.
To get more buyers to the show, ASR said it plans to fly a “select” group from “prominent” stores around the country to the event.
ASR Holiday is smaller than ASR’s big show held at the end of this month in San Diego.
More Doorhangers
Last week, I talked about how doorhangers are driving business at marketer PowerDirect in Newport Beach.
Since, I’ve gotten more details.
Chief Executive Bill Borneman said growth has prompted the shop to “add people every month in one department or another.”
PowerDirect has about 45 full-time workers and several hundred contract employees, he said.
This year, the shop expects to add up to 30 employees in production, data services and as account executives, Borneman said.
PowerDirect now is working on campaigns for some 90 clients, including Gap Inc.’s Old Navy Inc., Best Buy Co., Home Depot Inc. and Irvine’s LA Fitness Inc.
Last year, the shop brought in several clients, including 24 Hour Fitness, Federated Department Stores Inc.’s Macy’s and Wal-Mart Stores Inc.
