This is kind of fun. As you’re aware, TPG Capital offered to buy all of Billabong for $3 a share before the Nixon deal and other steps were announced. Billabong said no because the deal was contingent on too many things and they needed an immediate, certain solution to their short term balance sheet issue. But now, even with the Nixon deal happening, TPG still wants to buy them for $3.00 a share. What More…
Update on Billabong: The TPG Offer
February 20th, 2012Billabong’s Announcement: Short Term Solution, Longer Term Question.
February 20th, 2012With last Thursday’s announcement, Billabong has moved to address its balance sheet issues. But, to paraphrase one of the analysts in the conference call, "This is all well and good, but how do we know we won’t be discussing the same issue a year from now?" Let’s look at the steps Billabong took and its half yearly numbers. Then we’ll talk about Billabong’s longer term strategy and see if there’s an answer More…
Billabong’s Upcoming Half Year Report and Their Choices
February 16th, 2012Sometime late afternoon West Coast time, Billabong is going to release their half yearly numbers and have a conference call on those results. In the meantime, as most of you may know, trading on their stock has been suspended pending an announcement. That announcement may have something to do with this article stating that Billabong has received a US $820 million takeover offer from TPG Capital. All I know is what’s in More…
Interesting Stuff from Quiksilver’s 10K Annual Report
January 24th, 2012Back in December, Quiksilver released its annual and quarterly earnings and held a conference call. I did the best analysis I could, but bitched and moaned because I didn’t have the complete 10K or the balance sheet. You can see that analysis here. Last week, the company issued its 10K. I’m not going to redo the analysis I did, but there’s a few pieces of interesting additional information I thought you’d want to More…
Billabong Reports Deteriorating Sales Growth Trend; The Strategy or the Economy?
December 21st, 2011Billabong’s announcement about sales trends since the end of October and the actions it’s taking may portend issues for other companies as well as for Billabong. Let’s take a look at what they announced, what actions they are taking, how they found themselves in this position, and how it relates to the global economic environment. Here’s what they said (you can go here to read the announcement and the transcript of More…
Quik’s October 31st Quarter and Full Year
December 17th, 2011I’m going to work without my usual net of an SEC filing this time. That’s because year-end 10Ks always take a long time to come out, and I don’t want to wait that long to look at Quik’s results. I’ll review the 10K when it does show up. Right now, we’ll go with the press release and conference call transcript. Not to be old fashioned here, but I think I’ll avoid proforma adjusted More…
PacSun Makes Progress; Third Quarter Results, Store Closings, and Financing
December 8th, 2011When I looked at PacSun’s previous quarter I wrote, “The question in my mind, which hasn’t changed much since the last time I took a look at PacSun, is whether there’s enough uniqueness so they can afford to implement it [their strategy] given the economy and the company’s financial circumstances.” Whether or not their strategy is a good one, they were becoming too cash constrained to implement it. If you were More…
Zumiez’s October 29 Quarter; Consistently Pursuing a Solid Strategy
December 7th, 2011I know I’ve written about it before, but let’s review the pillars of Zumiez’s strategy as I see them before we get to the numbers. Here’s the link to the 10Q if you’re interested. Find and retain employees who are actively committed to the action sports lifestyle and make sure they are customer service focused. I suspect this might restrain their growth sometimes, but that’s okay. Have a wide selection of established More…
Orange 21′s September 30 Quarter: Sales are Up, But So Is the Loss
December 4th, 2011This is one of the few times where it makes sense to start on the balance sheet to really understand what’s going on. It shows stockholders’ equity of a negative $4.3 million. How, you might ask, are they paying their bills? If you look under liabilities, you’ll see a “Note payable to stockholder” of $10.5 million. That $10.5 million is owed to Costa Brava. Costa Brava “beneficially owns” approximately 50% (depends on how you More…
VF’s Quarterly Result; Why is it We Bother?
November 22nd, 2011We review VF’s results because they own brands we are interested in. Same reason we review Jarden’s, PPR’s and other companies. But we rarely get much information on those brands because they are part of a larger segment by which the corporations represents its business. And, in the case of VF, we get literally nothing on Reef because it’s so small that its contribution to the action sports and outdoor segment isn’t significant More…
