NEW YORK — Shares of apparel maker Volcom Inc. fell on Friday, after an analyst said the outdoor sports apparel sector is weak and downgraded the stock.
Shares tumbled $1.05, or 7.2 percent, to $13.50 during midday trading. The stock has traded between $6.39 and $28.88 during the past 52 weeks.
Last month, Volcom said its first-quarter profit fell but beat expectations. But Robert W. Baird analyst Mitch Kummetz said in a client note Friday that Volcom’s results are not only being challenged by the weak retail environment in general, but specifically the weak surf/skate/snow sector. Volcom sells skating- and surfing-style clothing and accessories.
“Upon reported first-quarter results, Volcom commented that it is starting to see signs of a positive shift in the landscape,” Kummetz wrote. “But since then, evidence is beginning to mount to the contrary, including comments from key customers, close competitors, and consensus from the overall core surf/skate/snow market.”
Although Kummetz said Volcom is the strongest apparel brand in its core market, he cut his rating and lowered his price target to $15 from $16.
The moves “reflect our opinion that the environment will remain more difficult over the near term than we had previously anticipated and do not reflect any deterioration of the Volcom brand,” he noted.
Rip Curl International today announced the appointment of Olivier Cantet as its new Group Chief Executive Officer. The appointment will be effective from July 1, 2009.
Olivier has been with Rip Curl since 2003 in his current regional role of European CEO and he will continue to manage that business alongside his new group responsibilities. Olivier takes over as Group CEO from Francois Payot, who has held the group position since 2006.
Chairman of the Rip Curl Board of Directors, Ahmed Fahour today said “We thank Francois for his outstanding leadership of the past two years, for stabilising the Rip Curl Group and for preparing Olivier and the new generation of leaders to take the company to its next level of success.”
Francois will resume his former role as Founder Director on the Rip Curl Board alongside Brian Singer and Doug Warbrick.
In announcing Olivier’s additional responsibility as Group CEO, the Rip Curl Founder Directors said, “Olivier has been a great leader in Europe and he has grown our business there in an impressive manner. We are proud to have appointed an internal candidate who lives the Rip Curl values. Over the last six years this keen surfer and expert mountaineer has dedicated his passion to Rip Curl and all the brand stands for. We are extremely confident in him.”
On his appointment, Olivier said “I have so far enjoyed my time with Rip Curl which is a great Australian born company. Our international group is in solid shape after Francois Payot’s term and the executive team and I are focussed on growing the business globally. I look forward to continuing my personal search inside the ultimate surfing company and to continuing my work on the Board with Brian, Doug, Francois, and Ahmed in their ambitious plans for Rip Curl’s future.”
Vans releases their first-ever book ‘Vans: Off the Wall’
It’s been talked about for many years and now is finally coming to life. On June 1, Vans released its first-ever book, Vans: Off the Wall, featuring 20-some-odd stories that collectively tell the story of the brand: from Rowley to Warped Tour, from Customs to Joel Tudor, from Alva and Cab to artist collabs.
The book is 208 pages in hardback, with more than 350 full-color photos, and published by Abrams, world renowned for high quality pop culture books. Vans is rolling out lots of bonus content and book info all of which can be tracked at vans.com/vansbook
