There may just be a silver lining on the dark cloud hovering over the retail sector. The $7.48bn action sports apparel business is benefiting from the strategy that combines trendy apparel with casual dressing and low costs for the consumer, reported Women's Wear Daily. According to the newspaper, amid declining sales at other apparel vendors and retailers, revenue at several action sports companies is trending higher. Labels like Roxy, Quiksilver, Hurley and O'Neill are rounding out selling floors that were predominantly filled with contemporary labels and higher-priced denim.
Volcom Inc. is just one of the brands that is benefiting from the interest in sports apparel and has raised its 2008 sales target to a range of $343m to $347m, from previous estimates of $339m to $344m. Zumiez Inc. said first-quarter revenue grew 14% to $78.7m from $68.8m, while net income fell 13% to $1.4m from $1.6m on higher expenses. Buckle Inc. said first-quarter net income grew 53% to $18.7m from $12.2m as revenue increased 32% to $160.3m from $121.1m.