Surfwear Companies Keep Balance Atop Rising Wave of Sales

0

Wall Street was nervous that hurricanes and rising gas prices might drain shoppers’ extra cash and knock the wind out of back-to-school sales, one of the most critical times for stores.


But Anaheim-based Pacific Sunwear of California Inc. and Foothill Ranch-based Wet Seal Inc. have both posted gains.


At Pacific Sunwear, same-store sales grew 5.3 percent from a year earlier for the five weeks ended Oct. 1. Total sales, including for stores open less than a year, were up 15 percent, to $113.7 million.


The company, which operates nearly 1,000 mall stores, lures teens with trendy clothes and other garb from several popular local surf brands, including Huntington Beach-based Quiksilver Inc., Costa Mesa-based Volcom Inc., O’Neill Clothing and Billabong USA, both in Irvine.


Meanwhile, Wet Seal said sales at stores open at least a year jumped 45 percent in September, surpassing Wall Street expectations by about 30 percent. The company’s net sales for the five-week period ended Oct. 1 grew 16 percent, to $48 million.


In the past few years, Wet Seal has undergone a massive restructuring that included refinancing, the closing of 150 Wet Seal stores and the axing of its 31-store Zutopia clothing division. The company now has 307 Wet Seal and 92 Arden B. stores.


To lure more shoppers, Wet Seal lowered its prices, increased its selection of clothing and accessories, and made more frequent deliveries of new stuff to its stores. Now, eyes are on the holidays.


“September showed that the American consumer will still pay for fashion,” Eric Beder, analyst at Brean Murray & Co. told Reuters. “The question is whether that will go forward.”


The National Retail Federation projects a 5 percent jump in holiday retail sales. The average consumer plans to spend $738.11 in November and December, up 5.1 percent from the previous year, according to the federation’s holiday survey.


Pacific Sunwear and Wet Seal already are trying to entice shoppers with marketing. On Wet Seal’s redesigned Web site, the company is promoting “comfy, cozy” sweaters. There’s a picture of a young girl wearing one, and above her it reads: “New stuff. Get it. Wear it. Flaunt it.” Wet Seal also is offering free shipping on purchases of $60 or more.


Meanwhile, Pacific Sunwear has its own promotions.


The company’s Web site, which says “Warm up for winter,” has a photo of teens wearing cool sweatshirts from brands like Costa Mesa-based Hurley International LLC, part of Nike Inc.


– Jennifer Bellantonio, Orange County Business Journal


No posts to display