Orange County apparel companies are trying different methods to navigate the industry’s current economic headwinds.
A few of OC’s top retailers are seeing big boosts in revenue and have accelerated the rollout of new stores, such as Irvine’s Boot Barn Holdings Inc. and Costa Mesa’s 5.11 Tactical.
Some have new leadership at the helm, with new co-Chief Executive Brie Olson at Anaheim’s Pacific Sunwear of California, which continues to experience a renaissance as a “cool kid” clothing brand, with annual sales now approaching $1 billion.
Others are exploring new corporate strategies, as seen in the case of Costa Mesa-based Vans, which is revamping its product and consumer execution.
This year’s Business Journal directory estimates over 8,000 OC employees across 33 firms based in OC, up around 3% from last year. A companywide headcount of 60,533 shows growth of 2.4% from a year ago.
These firms brought in an estimated $11 billion in 12-month sales, a 5% increase from last year, according to Business Journal data.
Standouts include Boot Barn (NYSE: BOOT) with 12-month sales estimated to be about $1.5 billion as of April 1.
Chief Executive Jim Conroy anticipates that the western wear retailer’s annual sales will double this year compared to pre-pandemic levels.
“We’ve nearly doubled the size of the business in just three years and achieved store productivity levels that far exceed pre-pandemic levels,” Conroy told analysts in late January.
Business Units
Challenges are facing VF Corp. (NYSE: VFC), the parent company of Vans, OC’s largest apparel company by local workers. It reported Vans sales of $2.8 billion for the nine-month period ending in December; that was off about 12% year-over-year.
St. John Knits International Inc.’s parent Lanvin Group Holdings Ltd. (NYSE: LANV) went public last December and now counts a valuation around $675 million. The Irvine-based luxury knit house brought in $85.9 million, or about 20%, of Lanvin’s total revenue in 2022, according to regulatory filings.
Targeting its high-end fashion consumers with pieces worn by celebrities and first ladies, the firm recently added television showrunner and producer Shonda Rhimes, known for TV series such as “Grey’s Anatomy” and “Scandal,” as a new brand ambassador in March.
Huntington Beach’s TravisMathew LLC is one of the major subsidiaries of Topgolf Callaway Brands Corp. (NYSE: MODG); parent CEO Chip Brewer saw the brand top $300 million in revenue last year.
The golfwear and lifestyle retailer recorded a 54% rise in OC employees, reporting 380 people in its local operations.
Chief Executive Ryan Ellis told the Business Journal that they are poised for a record year in 2023.
“With strong brand awareness, we expect growth and traffic to continue to accelerate for the brand for years to come.”
5.11 Tactical is another major contributor to its parent firm—the tactical gear and apparel manufacturer made up 33% of Compass Diversified’s (NYSE: CODI) total consumer sales last year.
The Costa Mesa-based retailer reported 12-month sales of $500 million for last year, growing 12% from a year ago. 5.11 surpassed 100 brick-and-mortar stores at the end of 2022 and aims to reach 400 in the next few years. Founder and Chief Executive Francisco Morales credits the company’s multi-channel business model for staying accessible among consumers.
Morales referenced the expertise provided by Compass’ leadership team in the firm’s development.
“That, coupled with the access to CODI’s resources, will help propel 5.11 to continued growth in the year ahead,” he said.
