FEBRUARY 24, 2005 -- Head Pursuing Delisting From NYSE
After losing $36.9 million in FY04, Head will be seeking stockholder approval to delist its in the US. The company's shares are very lightly traded, 9,227 shares a day on average. But the reason for the move is the cost of compliance with the requirements of the Sarbanes-Oxley Act has had and will continue to have on Head's operating results. In light of these costs, management analyzed and discussed the benefits and issues associated with our current listings, particularly the listing on the NYSE. As a result of this analysis, the management board made a proposal to the supervisory board to delist the shares from the NYSE and to terminate the common share agreement. The supervisory board approved this proposal.
The delisting and termination of the common share agreement is subject to the approval of Head's shareholders at the annual general meeting to be held on May 25.
If the resolution is approved by shareholders, Head will apply for the de-listing. However, it will need to comply with current regulations and will not therefore be able to file for deregistration from the SEC unless and until the number of US shareholders, whether holding directly or through nominees, falls below 300. Furthermore, the number of US shareholders must remain below 300 after deregistration in order to avoid recommencement of SEC reporting requirements.
The cost of compliance with Sarbanes-Oxley Act will drive many marginally profitable out of the public trough.
Two Paintball Retailers Merge
Pev's Paintball entered into an agreement to merge with Cousins Paintball. The new company will do business under the Pev's name. As the largest paintball field and store operator in the country, Cousins' expertise in will sure to compliment Pev's existing operations. The union of the two companies creates a company with holdings from New York to Virginia, with over 16 locations. The merger is the largest retail transaction in the history of the sport.
Deckers Has Huge 4Q, FY04
Deckers Outdoor's 4Q net sales increased 108% to a record of $74.2 million from $35.7 million in the same period last year. Net income for the quarter rose 275% to $9.2 million, compared to net income of $2.5 million last year, and EPS increased 279% to 72¢, versus income per diluted share of 19¢.
For FY04, net sales increased 77% to a record $214.8 million from $121.1 million last year. Net income increased 179% to $25.5 million, or $2.10 per diluted share, compared to net income of $9.2 million, or 77¢ per diluted share last year.
Pacific Sunwear will correct its accounting for leases after the a review of the latter and after discussion by management and its independent registered public accounting firm. After review of the letter from the Office of the chief accountant of SEC to the Center for Public Company Audit Firms of the American Institute of Certified Public Accountants, which clarified existing generally accepted accounting principles applicable to leases and leasehold improvements, the company determined that its accounting for leases was not consistent with the accounting principles described in the SEC letter. The company's consolidated statements of income is expected to be a reduction of net income of approximately $1.0 million, $300,000 and $600,000 for the prior three fiscal years.
CenterStone's Sales-Order Software Getting 54% More Dealer Log-Ins
CenterStone Technologies reported record usage of its online sales-order management software application. The number of retailer log-ins to the application jumped 54% to 57,400 in 2004 compared to 37,400 a year ago.
"The significant increase in usage demonstrates a need among specialty retailers for this type of service," said Tom Detmer, CEO of CenterStone. "Clearly these retailers are experiencing a greater level of comfort in using online ordering systems. That is evidenced not only by the increase in log-ins, but by the record number of orders being placed."
Among the brands currently making CenterStone Technologies solutions available to their retail customers and sales reps are: The North Face, Pearl Izumi, Marmot Mountain, Mountain Hardwear, Helly Hansen, Marker Apparel, Arc'Teryx, Sport Obermeyer, Redfeather Snowshoes, Marcolin, Fenwick, Garcia and Berkley Fishing, Remington Arms and Malone Auto Racks
Fights Break Out Over Nike Skateboard Shoe Launch
The New York Post reported that the launch of a limited edition skateboard shoe in a store on New York's Lower East Side almost caused a riot. Dozens of customers tried to jump the line to buy the shoe. A 300-pound bouncer had his hands full as "sneakerheads" waited two or three days in freezing weather for the launch of the limited edition Nike Pigeon (NYC) Dunk. Customers rushed the door at The Reed Space store. It became necessary to call the police.
Only 20 customers of the 70 on line came out with shoes, the Post reported. The shoe features an exclusive New York twist, a pigeon on the heel. The paper noted, "Although Nike's suggested retail price is $69, The Reed Space sold its small supply for $300 a pair. Sneakerheads are selling them for as much as $1,000 on eBay. Staple Design, which owns and operates The Reed Space, was tapped over a year ago by Nike to design the shoe, and chose a pigeon to represent New York."
Tracy Wilson has been promoted to NSM/golf division of GEAR for Sports. In this newly created position, Wilson will oversee the southern territory golf sales activity for GEAR for Sports brands, including GEAR for Sports, Sunice and Robert Trent Jones. Additionally, Wilson will retain her previous responsibilities as the director of national accounts, managing all major golf accounts and related events. Most recently, Wilson was the golf operations manager for Walt Disney World, where she managed golf merchandise for all Disney properties. Wilson has also worked for Callaway Golf and oversaw several interactive club-fitting venues
Reusch hired David Huntress as its national sales director. Huntress joins Reusch at a time when the company is re-establishing its presence in the North American market. Huntress has been involved in the sporting goods and sports apparel industry for more than 20 years. Huntress served as director of market development and SVP/sales and marketing for Bolle America. He was also NSM of Adidas Sports Eyewear and Izzo Golf. For the last four years, he has consulted with a number of sports and consumer products companies.
Fulcrum upgraded The Finish Line to buy from neutral…IRG Research initiated coverage of Foot Locker with a buy.