ROTH CAPITAL PARTNERS: Hosting 27th Growth Stock Conference March 8-11 in Dana Point, Calif.
Details on Industry Insight.
By TIFFANY MONTGOMERY
I asked Per what the deal means for Black Label and Blitz, and how business is going in general.
Black Label is one of the most credible brands of all time and has a strong following worldwide. To be able to be a part of and help contribute to the future and legacy of Black Label is very exciting for us.
On a nuts and bolts level by adding Black Label strengthens what Blitz has to offer to our independent retailers as well as our international customers.
This is a distribution deal.
The plan is to allow Black Label to focus on what they do best - design killer graphics and promote Black Label with great video content.
And with Blitz planning to sell a ton more Black Label their options to push back into selling more shirts will be an option as well.
The timing of this could not be better for Blitz, we are up 25% so far this year and now in fast growth and hiring mode with plans to hire in sales, creative and production departments. Stronger offering breeds stronger sales. So the halo effect from our current growth and addition to our infrastructure should benefit Black Label quite a bit.
Blitz is a hard goods specialist that has proven to be a great contributor to quite a few skate brands over the years and this is something we are proud of. And yes, if the right opportunity presents itself we could consider adding more brands in the future whether we start a new one or take on an established one like Black Label.
The results are mixed when we talk to the shops. However, we are lucky Blitz is in a very good spot right now with the fast growth we are seeing from our newer brands Sk8Mafia and JSLV apparel, and adding Black Label to the mix will certainly be a great boost.
I am also encouraged that better construction decks seem to be gaining a bit of momentum among our competitors. We are certain that when we drop Andrew Reynolds' Helipop there will be no doubt that a skateboard can be that much better - for a price!