CARLSBAD, CALIFORNIA and TORONTO, ONTARIO--(Marketwired - Dec. 4, 2013) -
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Pacific Vector Holdings Inc (TSX VENTURE:PVH) ("Pacific Vector" or the "Company") a leading specialty retailer of action sports based retail and brands annouced today that net revenues for the third quarter and year to date periods ended Oct 7, 2013 were $4.1 million and $8.8 million which are increases of $3.7 million and $7.6 million respectively over the same periods last year. The increases in revenue were a result of the acquisition of Ryderz Compound retail stores which was completed April 8, 2013. The cash loss per share for the quarter and year to date were 3.5¢ and 7¢.
- Converted two stores to PR7ME Ride Shops, increasing foot traffic and customer spend;
- Acquisition of DNA Distribution for the Brands division with historical annual revenue in excess of $7.5 million;
- Captured synergies from the Ryderz acquisition and now looking to capture DNA synergies;
- Invested in inventory for the 4th quarter retail cycle;
- Retail e-commerce fully re-designed and re-introduced;
- Re-designed e-commerce sites for DNA brands which will be launched in December along with the Street League Brand which will launch first quarter 2014;
- Black Friday sales were strong but down 3% from prior year which is better than the overall Black Friday market decrease of 13% realized by our competitors.
Robert Reynolds, Chief Executive Officer of Pacific Vector Holdings, Inc.,:"Pacific Vector continues to deliver acquisitive growth across its divisions while focusing on stabilizing margins, bolstering inventory, providing brand continuity across our retail stores, while also investing for future growth, particularly in the International and e-commerce areas."
The retail division of PVH currently consists of the Xrydez and No Fear stores. The company is currently engaged in a re-branding of the retail stores to PR7ME Ride Shop (pronounced Prime) (www.primerideshop.com). This re-branding initiative was created to better represent a broader range of youth culture lifestyle brands and create brand contunity across the retail portfolio. To-date the Company has converted two of the thirty-four stores to the Prime Ride Shops and the Company is seeing an increase in foot traffic as a result. Our retail strategy remains to expand the Retail operations over the next three years under the PR7ME Ride Shop and the Street League banners. During the most recent quarter, the Company was on schedule with its store re-branding initiative and is scheduled to convert nine locations to PR7ME Ride Shops in Q1 2014. Those locations include 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 scheduled for launch in Q1 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 continues to right-size the business unit but 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 it challening retail enviroment during the most recent quarter. The Company expects its retail division to break even in the 4th Q of 2013 due to seasonally improved sales but expect it to realize losses again in the first two quarter sof 2013 until it reaches a critical mass of stores under the PR7ME Ride Shop or Street League banner.
The brands portfolio consists of Gatorz aluminum eyewear and most recently Alien workshop, Habitat Footwear and Reflex bearings which it acquired on November 20th from DNA Distribution. The Company expects to realize higher margin growth across the groups due to its ownership in brands.
To view the complete financial statements along with the Management Discussion and Analysis please visit SEDAR or the company's website.
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About Pacific Vector
Pacific Vector is a premier action sports retail and consumer brands company. www.pacificvector.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Pacific Vector assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Pacific Vector.
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