Zumiez CEO Rick Brooks said Thursday that the trend of new and smaller action sports brands performing better than large national brands continued in the third quarter.

During Zumiez's third quarter conference call, Brooks said the larger, more widely-distributed apparel brands continue to negatively impact Zumiez overall sales and margins, especially as Zumiez has increased promotions to compete with other teen retailers at the mall that are lowering prices on the big brands.

Apparel accounts for about 50 percent of Zumiez overall sales and continues to be the most challenging category, Brooks said. An analyst asked if the company was going back to the ...  Read More...     Email to Friend

Overall stock prices were battered again today, and Quiksilver stock closed at 88 cents.

I thought it would be good to review some information I included in a story about Quiksilver's low stock price two weeks ago explaining what happens to a stock that trades under $1.

The New York Stock Exchange requires companies to maintain an average closing price over 30 days of at least $1. If a company receives a non-compliance notice from New York Stock Exchange, it has six months to take action before the stock could be suspended from trading or delisted. 

Interestingly, ...  Read More...     Email to Friend

Some tough news for Quiksilver this morning. Here's the Associated Press story about the company's credit rating being downgraded on weakening liquidity and other factors.

Moody's lowers Quiksilver ratings on debt levels

Thursday November 20, 9:00 am ET
Moody's cuts some Quiksilver ratings due to weakened liquidity, reliance on short-term debt

NEW YORK (AP) -- Moody's Investors Service on Wednesday lowered its ratings on outdoor apparel maker Quiksilver Inc., due to weakening liquidity and reliance on short-term debt following the sale of its Rossignol ski equipment business.

Last week, Quiksilver ...  Read More...     Email to Friend

In the first two parts of my in-depth Hawaii report, I focused on economic and tourism data and forecasts. Today, I talk to retailers on the ground level and hear from them how business is going as tourism slows.  I also talked with an executive at a major retail development to check the climate.

Kim Ball, Hi-Tech Surf Sports, owner of three stores in Maui

I talked with Kim on the phone and he sent me a detailed email about how business is going.

Kim told me Hi Tech is ...  Read More...   

Are The Buckle and Urban Outfitters the only retailers in America doing well? It seems that way.

The Buckle reported this morning that sales increased 25.7 percent to $210.6 million in the third quarter. Net income rose 31 percent to $29.1 million

Same-store sales rose 19 percent.

Even though The Buckle continues to wildly outperform competitors, its stock has still been battered along with the rest of the retail sector. It closed Wednesday at $15.39, down 60 percent in two months.

Zumiez releases earnings today after the market closes. The company had been performing relatively well given the environment until September, when same-store ...  Read More...     Email to Friend

Yesterday in Day I of the Hawaii economic report, I focused on how Hawaii is faring so far in the downturn.

Today, I write about my interview with Hawaii's Chief Economist, Dr. Pearl Imada Iboshi. She discusses some of the reasons for the decline in visitors and her outlook for next year and beyond. 

Fewer airline seats

Pearl Imada Iboshi

Iboshi, right, told me that the islands have been impacted by the decrease in available airline seats to Hawaii, especially after ATA and Aloha ...  Read More...   

Genesco, the parent company of shoe retailer Journeys, said last evening that same-store sales for the chain rose 5 percent in the third quarter ended Nov. 2.

Company executives said they were pleased with Journeys performance given the challenging retail environment. Journeys is an important customer for footwear brands in the industry.

November isn't going as well, however. Through Nov. 16, Journeys same-store sales are down 9 percent.

The company expects sales to rebound. It said the comparisons from last year are tough for key product lines because of timing of vendor shipments this year. Genesco said a "meaningful" improvement in same-store ...  Read More...     Email to Friend