SURFWEAR and leisure clothing group Billabong has moved to take an online presence in the US, buying swell.com, an internet clothing retailer.
Swell, established in 1999, sells a wide variety of leisure apparel for men and women, as well as shoes and accessories, including Billabong, Volcom, O'Neill, Hurley, Rusty, Quiksilver, Insight, Rip Curl, RVCA, Roxy and Swell, its own brand.
Billabong declined yesterday to reveal the price it paid for Swell, which is California-based, but said it was not material to the group's balance sheet.
And the Gold Coast-based group said its acquisition would initially contribute less than 1 per cent to its revenue.
But the company said its purchase would be "slightly" earnings-per-share-positive in its first full year as part of Billabong - and, with online shopping sites garnering more of the retail dollar, it will be hoping to see Swell grow.
In a statement, Billabong USA president Paul Naude said the acquisition would allow Billabong to manage its brands in the growing online market.
"We look forward to growing the Swell business and further developing it as a showcase online platform for the US boardsports industry," Mr Naude said.
"The internet plays a significant role in the recreational habits of the youth market so it is important for our group to ensure we provide them with a premium brand experience when shopping online."
According to Apparel News, San Clemente-based Swell was founded by partners Nicholas Nathanson - a former e-commerce analyst at investment bank Salomon Smith Barney - and Jeffrey A. Berg, who is a finance and new media executive.
Last month, Billabong reaffirmed its guidance of 5 per cent net profit growth for the 2010 financial year, but has warned that recent strength in the Australian dollar could erode its profits.
The company said it had survived a difficult 2009 financial year in good structural and financial shape and was optimistic for a productive year ahead as stability returned to the apparel market in key regions.
Billabong shares rose 7c to $10.17 yesterday.
This article is from http://www.news.com.au
Tuesday, November 24, 2009
Apparel + Shoes + Accessories: Billabong buys Swell.com
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