Pacific Vector Holdings Inc., which recently acquired three brands from Ron Dyrdeck’s DNA Distribution, reported Black Friday sales at its action sports retail business declined 3 percent from the prior year, but said that was better than the 13 percent realized by competitors.



The company, which is traded on the Toronto Stock Exchange, reported net revenues for the third quarter ended Oct 7, 2013 were $4.1 million, up $3.7 million over the same period last year.  Sales for the fiscal year-to-date period ended Oct. 7 reached $8.8 million, up $7.6 million compared with the same periods in 2012. The increases were both due to the April 8, 2013 acquisition of the Ryderz Compound action sports retail stores. The cash loss per share for the quarter and year to date were 3.5¢ and 7¢ respectively.


 

“Pacific Vector continues to deliver acquisitive growth across its divisions while focusing on stabilizing margins, bolstering inventory, providing brand continuity across our retail stores,” said Pacific Vector CEO Robert Reynolds. “[We are] also investing for future growth, particularly in the International and e-commerce areas.”

 

Retail division
The company is currently re-branding its Xrydez and No Fear stores to the PR7ME Ride Shop  (www.primerideshop.com) banner to better represent a broader range of youth culture lifestyle brands and create brand continuity across the retail portfolio. Two of 34 stores converted to the format are seeing an increase in foot traffic and the company is sticking with its plans to rebrand all its stores over the next three years. Those plans include converting nine locations to PR7ME Ride Shops in the first quarter of 2014, including locations in San Diego, Orange County, New Mexico, Arizona and Nevada. The company has also entered into a joint venture with Rob Dyrdek to launch the Street League e-commerce site in the first quarter of 2014 prior to the first Street League event.

 

Online order fulfillment and information technology solutions continue to be developed in-house with full back-end support from our distribution center resources in Carlsbad, CA. The e-commerce platform is now fully operational to maximize efficiencies.

 

The company disclosed that while it continues to right-size the retail business, it has “experienced unforeseen issues relating to inventory product mix, supply chain and human resources. Those issues coupled with a challenging market place, weaker traffic trends and a shortened shopping season made for a challenging retail environment during the most recent quarter.”

 

Pacific Vector expects its retail division to break even in the fourth quarter of 2013 due to seasonally improved sales but expects it to realize losses again in the first two quarters of 2013 until it reaches a critical mass of stores under the PR7ME Ride Shop or Street League banner.

 

Brand Division
The brands portfolio consists of Gatorz aluminum eyewear and most recently Alien workshop, Habitat Footwear and Reflex bearings which it acquired Nov. 20 from DNA Distribution. The company expects to realize higher margin growth across the groups due to its ownership in brands.