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Tiffany Montgomery
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Holiday outlook: Beach Bums

By Tiffany Montgomery
November 28, 2007 5:45 AM

The mood seems uncertain as the holiday shopping season gets underway. The stock market's erratic, the housing market has slowed, gas prices are soaring.


So I asked asked a few industry retailers how they are feeling at this crucial time of the year.


Cliff HaddadinCliff Haddadin, president and CEO
of Beach Bums Boardshops.

First up: Cliff Haddadin, president and CEO of Beach Bums Boardshops, which has 14 stores in Southern California and Nevada.


One note: he mentions Beach Bums has started a private label program. I'm following up to find out a little bit more about that.


What's your outlook for the holiday season?

Sales will be lower but our margins will be a lot better than last year due to better buys - purchasing products from vendors were we can take volume discounts - and IMUs (Initial Mark Ups). When we first receive the goods we price it in line with the vendor's suggested retail and sometimes we might go a couple of percentage points higher depending on the item. In addition, our margins will be higher with the introduction of our private label program.


Did you order more or less inventory than last year at this time?

Much less than last year.


Will sales grow at the same pace as last year?

Not in our industry - it is getting more and more competitive. Sales will definitely be less than last year. Customers are looking for bargains and price points.


What trends are you seeing?

Specialty fleece and T-shirts with treatments, darker denim washes. Strong brands include Obey, Volcom, LRG in men's and Billabong, Roxy, Volcom in juniors.


Are there any categories you think will be home runs in the fourth quarter?

Custom T-shirts, speciality fleece and dresses for juniors.


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