Let’s review what’s happened. Over a few years, Billabong transformed itself from a wholesaler with a group of strong brands with some retail to a 600 store retailer that owns brands. The retail growth, I’ve written, probably took place a little faster than they had planned, but if what you think is the right opportunity appears, sometimes you just have to take a leap.
For the brand and retail strategy to work together, they have to get as much of their owned brand product as possible into owned retailers. That maximizes the gross margin dollars they earn.