| Sole
Technology steps into Europe Europeans
are mimicking Southern California's surf
and skate lifestyle, a trend that is sparking
action among local companies eager to
export that culture.
Sole Technology, a Lake Forest-based
shoemaker that owns brands such as Etnies
and Emerica, said late Wednesday that
it bought its European distributor, A4
Distribution. Sole didn't say how much
it paid for A4, which is based near London.
For 12 years, A4 has been the exclusive
distributor for Sole's brands in the United
Kingdom. Previously, A4 bought products
from Sole and handled the sale of the
merchandise to retailers. Now, Sole will
take over that distribution directly.
The move is part of an ongoing bid by
Sole to build up its European business.
In late 2005 the company established a
regional headquarters in Amsterdam. Overall,
about a quarter of the company's $200
million business comes from Europe.
Another local lifestyle company working
to build sales in Europe includes Volcom.
The Costa Mesa-based maker of surf, skate
and snow clothing and accessories this
year took over its licensed operations
in Europe. For about a decade Volcom had
done business in Europe via a licensing
agreement, but that deal expired in December.
The company is working on a European
Volcom line to debut in fall. It's also
building a regional headquarters in southwest
France that will open this spring, and
has hired 15 employees for that office.
For the first nine months of last year,
Volcom received about $1.9 million in
revenue from Europe, based on a 6 percent
royalty rate. That's a 23 percent increase
from the same period in 2005, chief financial
officer Doug Collier said Wednesday.
The big local player in Europe is Quiksilver,
the giant surf, skate and snow brand based
in Huntington Beach. In the fiscal year
ended Oct. 31, Quiksilver's European sales
accounted for 43 percent of revenue, up
from 40 percent a year earlier.
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