MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
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I spoke with Lost Clothing President Tim Garrett at ASR to find out how 2009 is progressing for the brand and what's in store for 2010.
Despite the tough economy, Lost Clothing will be profitable this year, Tim said.
In the first half of 2009, Lost Clothing revenue rose 5 percent, he said, but margins were a struggle as Lost took smaller margins to support retailers and tighten price points.
The second half of the year was tougher on the revenue side because Lost sales are traditionally stronger in the first half of the year and because of the impact of the economy.
Spring 2010 is the first full season with new designers Johnny Monson and Chris Boland. They did work a little bit on the Holiday 2009 line on jackets, fleece and sweaters, and those pieces have been well received, Tim said. Lost is getting reorders on those styles and is making sure that product is on the right kids, he said.
I asked Tim how it's going with Johnny and Chris on board.
"Excellent," he said. "Having Johnny and Chris is huge for us."
Boardshorts are very important to Lost, of course, and stretch is an important component for Spring, with about 60 percent of the line stretch. Boardshort price points range from $38 to $65, and keep the Lost look while still incorporating trends. For instance, the boarshorts use color, but the base is black, which gives them the edgy Lost vibe. Lost also has floral boardshorts in the line, but the base color is darker, Tim said.
In the second half of 2010, Johnny and Chris and the Lost brand will focus on creating a fresh and different approach with denim and pants, with the goal of boosting that business.
The company also spent a lot of time this summer on the East Coast on grass roots marketing events including Lost Surf Jams, and gift certificates to local retailers were the prizes.
"We want to drive traffic to retailers," Tim said. "We want to do everything we can to support them."