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Mossimo
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Mossimo was a sportswear and accessories company, founded in 1986 by designer Mossimo Giannulli that was acquired by Iconix Brand Group in 2006. Mossimo specialized in youth and teenage clothing such as shirts, jeans, jackets, socks, underwear, and accessories.
Key Information
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History
[edit]Founding (1986) and expansion
[edit]Mossimo was founded in 1986 by Mossimo Giannulli on Balboa Island in Newport Beach, California. Giannulli dropped out of the University of Southern California in 1987, to create his Mossimo streetwear line, with a $100,000 loan from his father.[1] At the close of his company's first fiscal year, Giannulli had $1 million in profits.[2] The following year, he had $4 million.[3]
Mossimo clothing features prominently in the 1990 volleyball film Side Out.
IPO (1996) and relationship with Target (2000–2017)
[edit]In 1996, Mossimo went public in an initial public offering.[3] After shares tumbled from $50.00 to $4.75 when Giannulli tried and failed to transition the brand from streetwear/beachwear to high fashion,[4] he took the brand downscale. On March 28, 2000, Mossimo, Inc announced a major, multi-product licensing agreement with Target stores, for $27.8 million.[5][3] In 2017, Target underwent a makeover, introducing new smaller lines and eliminating bigger billion-dollar lines, including Mossimo.[6]
Target distanced itself from Mossimo amid Mossimo Giannulli's involvement in the 2019 college admissions bribery scandal, saying that Target had not been involved with Giannulli in over a decade.[7] Mossimo and his wife, actress Lori Loughlin, were convicted of bribing University of Southern California officials with up to $500,000, to secure enrollment of their two daughters.[8]
Acquisition by Iconix (2006)
[edit]In 2006, Mossimo was acquired by Iconix Brand Group.[3]
Gallery
[edit]-
Mossimo store in Cabanatuan, Philippines -
Baby and kids store -
Embroidery
References
[edit]- ^ Babcock, Gregory (2015-07-20). "How '90s Cool Brand Mossimo Went From Stussy Rival to Target Stores". Complex. Retrieved 2020-05-11.
- ^ "Mossimo Giannulli - Fashion Designer | Designers | The FMD". Fashion Model Directory. Retrieved 20 June 2017.
- ^ a b c d "How Mossimo Went from Being Head-to-Head with Stussy to Target's In-House Brand". The Hundreds. 20 July 2015. Retrieved 5 May 2016.
- ^ "How Mossimo Went from Being Head-to-Head with Stussy to Target's In-House Brand". The Hundreds. 20 July 2015. Retrieved 9 April 2019.
- ^ Earnest, Leslie (29 March 2000). With Losses Mounting, Mossimo Turns to Target, The Los Angeles Times.
- ^ Kumar, Kavita (22 August 2017). "Target is shedding Merona and Mossimo and adding new brands instead". The Los Angeles Times. Retrieved 23 April 2019.
- ^ Barrabi, Thomas (14 March 2019). "Target distances itself from Mossimo label amid college admissions scandal". FOX Business. Retrieved 23 April 2019.
- ^ Franklin, Ericka (12 March 2019). "Meet Lori Loughlin's Husband, Fashion Designer Mossimo Giannulli". The Hollywood Reporter. Retrieved 2020-05-11.
External links
[edit]
Media related to Mossimo at Wikimedia Commons- Official website
- Mossimo Giannulli at FMD
Mossimo
View on Grokipediafrom Grokipedia
Mossimo is an American mid-range clothing brand specializing in sportswear, beachwear, and accessories, founded in 1986 by designer Mossimo Giannulli.[1][2]
Initially launched with a focus on surf-inspired apparel sold exclusively through surf shops, the brand achieved $1 million in gross sales during its first year of operation.[3]
Mossimo expanded its offerings to include knits, sweatshirts, and other casual menswear, culminating in an initial public offering in 1996 that valued the company highly amid rapid growth.[4][5]
A key milestone came in 2000 with a licensing deal to supply Target stores, providing an upfront payment of $27.8 million and shifting the brand toward broader mass-market distribution.[6]
In 2006, Mossimo was acquired by Iconix Brand Group, under which it has continued operations, including international retail presence.[1][7]
The brand's founder, Mossimo Giannulli, later became embroiled in controversy through his involvement in the 2019 college admissions scandal, pleading guilty to conspiracy and wire fraud charges for paying $500,000 to fraudulently secure admissions for his daughters at the University of Southern California, resulting in a five-month prison sentence in 2020.[8][9]
History
Founding and Early Growth (1986–1995)
Mossimo was founded in 1986 by designer Mossimo Giannulli in his apartment on Balboa Island in Newport Beach, California.[10] With an initial $100,000 loan from his father, Giannulli launched the brand by producing neon-colored beach volleyball shorts and T-shirts emblazoned with the "M" trademark, targeting the Southern California surf and beach culture.[10] The company generated $1 million in sales during its debut year, primarily through direct sales to local surf shops.[10][11] Sales accelerated to $4 million in 1987, reflecting rapid adoption among coastal retailers and the brand's emphasis on casual, vibrant apparel suited to active lifestyles.[11] By the late 1980s, Mossimo had established itself as a fixture in the California fashion scene, leveraging word-of-mouth marketing and its association with beach volleyball and surf communities to build a youth-oriented lifestyle image.[10] Expansion into broader distribution channels began in the early 1990s, transitioning from exclusive surf shop placements to select department stores and specialty chains, which broadened its reach beyond regional markets.[10] In 1991, to professionalize operations, Giannulli hired an experienced designer and diversified the product line to include woven sweaters, knit shirts, fleece sweatshirts, and initial accessories, marking a shift toward casual sportswear.[10][11] Sales surpassed $20 million by 1993, supported by this evolution and the opening of the first branded Mossimo Supply store in a Costa Mesa mall that December.[10] Further retail pushes included a New York City store in 1994 and plans for locations in Dallas, San Francisco, and Chicago.[10] By 1995, Mossimo operated over 30 in-store shops within major department stores like Macy's, with annual sales reaching $110 million—driven by activewear comprising 60% of revenue and sportswear/accessories at 34%—and a compound annual growth rate of 46.6% in the first half of the decade.[10][4]Initial Public Offering and Financial Struggles (1996–1999)
In February 1996, Mossimo Inc. completed its initial public offering on the New York Stock Exchange, selling 4 million shares at $18 each, which closed at $25 on the first trading day amid strong demand and 3.6 million shares traded.[12] The offering raised approximately $36 million net, with proceeds intended to finance in-store shops, reduce debt, and build a new headquarters and distribution facility; founder Mossimo Giannulli, aged 32, became the youngest CEO of an NYSE-listed company at the time.[10] The stock initially surged, reaching a peak of $50 per share by June 1996.[10] Post-IPO expansion into upscale menswear and women's sportswear, however, triggered operational challenges, including high production costs and inefficiencies from rapid growth.[10] By the third quarter of 1996, profits fell nearly 50% year-over-year due to elevated manufacturing expenses, with the stock dropping to $15 by October.[10] In 1997, the company reported a first-quarter loss of $498,000 compared to a $5.8 million profit the prior year, followed by a third-quarter net loss of $4.8 million on sales of $17.1 million—a 46% decline from $31.9 million in 1996—exacerbated by inventory tracking flaws and reserves for markdowns totaling $2.2 million after taxes.[10][13] The stock slumped below $9 by February 1997 and hit a 52-week low of $5.75 after the third-quarter disclosure.[10][13] Financial difficulties intensified in 1998, with an annual net loss of $18.7 million on revenue of $70.9 million, reflecting a 34% sales drop from 1996 levels amid broader distribution cuts and product line shifts.[10] The second quarter alone saw a $6.1 million loss (41 cents per share), including $3.8 million in one-time restructuring charges for property write-offs, closing a screen-printing operation, and shuttering a Pasadena store; men's clothing sales plummeted 64% to $4.3 million, though women's lines grew modestly by 7.75% to $4.2 million.[14] To address these issues, Mossimo hired turnaround specialist John P. Brincko as CEO in March 1998 and closed its watch division earlier that year.[10] The stock traded below $3 by mid-1998.[10] By 1999, efforts to streamline operations showed partial stabilization, as fourth-quarter losses narrowed to $2.6 million (17 cents per share) from $13.5 million the prior year, aided by staff reductions of about 27%, a smaller headquarters, and a trimmed product focus; annual losses totaled $13.8 million on $45.3 million in sales, down 36% from 1998.[15] However, ongoing sales declines persisted due to reduced retail partnerships.[15] In July 1999, the company agreed to a $13 million settlement of class-action lawsuits alleging executives misled investors from February 1996 to January 1997 by understating production delays and women's wear expansion risks, which had driven the stock from $18 to $50 before its fall below $6; the payout, covered largely by insurance, included a $6.1 million noncash charge, though Giannulli denied the claims.[16]Licensing Deal with Target and Acquisition by Iconix (2000–2006)
In March 2000, amid mounting financial losses and the threat of bankruptcy, Mossimo Inc. entered into a multi-product licensing and design services agreement with Target Corporation, dated March 28, 2000.[17] Under the three-year pact, Mossimo licensed its trademark to Target for exclusive use in apparel categories such as men's, women's, and children's clothing, while founder Mossimo Giannulli provided design services; the agreement guaranteed minimum royalties totaling $27.8 million for Mossimo.[18] This deal effectively shifted Mossimo from direct manufacturing and retail to a licensing model, with Target producing and selling Mossimo-branded items in its stores starting in late 2000, providing the company with stable revenue to avert collapse.[19][20] The Target agreement included provisions granting the retailer rights to Mossimo's name, likeness, and design input, with Giannulli personally earning at least $8.5 million over the term; it was later amended and extended, including a two-year renewal beyond the initial period.[21][22] By 2002, royalties from the partnership had reached $16.7 million annually, underscoring its role in Mossimo's financial stabilization.[23] However, the exclusivity limited Mossimo's expansion opportunities elsewhere in the U.S. market during this phase.[20] On April 3, 2006, Iconix Brand Group Inc., a New York-based brand management firm specializing in licensing, announced its agreement to acquire Mossimo Inc. for approximately $119 million, or $7.50 per share, comprising $4.25 in cash and $3.25 in Iconix stock.[24] The transaction, subject to potential adjustments up to an additional $16 million based on performance metrics, closed in November 2006 with a final payment of $67.5 million in cash and 3.8 million Iconix shares, plus fees to intermediary Cherokee Inc. for facilitating the original Target deal.[25][26] This acquisition integrated Mossimo into Iconix's portfolio of licensed brands, allowing the company to leverage the established Target partnership for ongoing royalty streams without operational responsibilities.[27]Post-Acquisition Trajectory and Licensing Shifts (2007–Present)
Following Iconix Brand Group's acquisition of Mossimo in late 2006 for approximately $258 million, the brand was integrated into Iconix's licensing-focused portfolio, with primary U.S. royalties derived from its exclusive direct-to-retail agreement with Target Corporation, covering men's, women's, and children's apparel categories. This arrangement, originally established in 2000, continued post-acquisition and was projected to generate $20–25 million in royalty revenue for Iconix in 2007 alone.[27][28] In early 2007, Iconix announced several new licensing agreements tied to the Mossimo deal, alongside the elimination of contingent share obligations to former Mossimo shareholders, signaling efforts to stabilize and expand the brand's revenue streams through diversified partnerships.[29] The Target license provided steady royalties until its expiration in October 2018, after which it was not renewed, leading to an estimated $10 million annual reduction in Iconix's revenue from the brand. This shift marked a pivot away from exclusive U.S. mass-market retail partnerships toward a broader, non-exclusive licensing model emphasizing international markets and select wholesale channels. Iconix retained ownership of Mossimo and pursued opportunities in regions like Asia and Europe, where the brand maintained presence through prior agreements in Australia, New Zealand, and emerging retail partnerships, such as department stores in South America.[30][31][32] As of 2024, Mossimo remains part of Iconix's core holdings, with the company promoting the brand for licensing in casual apparel for men, women, and children across global markets, focusing on year-round, affordable styles. Recent initiatives include a 2024 relaunch in the United Kingdom featuring remastered 1990s graphics, aimed at reviving brand equity through nostalgic designs and expanded distribution via wholesale and e-commerce partners. Iconix's broader financial challenges, including debt management and asset sales of other brands, have not resulted in a divestiture of Mossimo, positioning it for potential growth in licensing amid evolving retail landscapes.[33][34][35]Products and Design Philosophy
Core Product Lines and Materials
Mossimo's foundational product lines, introduced in 1987, centered on beach and activewear, including neon-colored three-paneled volleyball shorts and T-shirts emblazoned with the brand's signature "M" logo.[2] These items targeted a surf-inspired, youthful aesthetic, emphasizing casual, performance-oriented apparel suitable for coastal lifestyles.[36] By 1991, the lineup expanded to include sweatshirts, knits, sweaters, woven sweaters, and fleece sweatshirts, broadening into casual sportswear while maintaining a focus on comfortable, everyday basics.[2][36] Further diversification in the mid-1990s incorporated knit and woven shirts, denim jeans, and women's clothing such as T-shirts, tanks, shorts, and sweatshirts, alongside men's outerwear and performance pieces.[2] Accessories emerged as a key category by 1993, encompassing belts, hats, bags, wallets, eyewear, and shoes, which accounted for 34% of sales by 1995.[2] In 1997, a lower-priced activewear extension added cotton T-shirts and swimwear, reinforcing the brand's emphasis on accessible, versatile surf and streetwear.[2] Post-acquisition, core categories evolved to include broader apparel, footwear, swimwear, and accessories, with home goods added for year-round casual-chic styles aimed at men, women, and children aged 25-55.[33] Materials in Mossimo's core lines prioritized durability and comfort for active use, with cotton predominantly featured in T-shirts and swimwear for breathability and softness.[2] Fleece provided warmth and moisture-wicking properties in sweatshirts, while denim offered structured resilience in jeans.[2] Early manufacturing in an Irvine, California facility supported in-house control over fabric selection, favoring blends that balanced affordability with performance in beach and casual contexts.[2] Contemporary extensions incorporate stretch synthetics like spandex in knits for enhanced fit, though foundational pieces retained natural fibers like cotton to align with the brand's surfwear origins.[33]Evolution from Beachwear to Broader Apparel
Mossimo originated in 1986 as a men's beachwear brand, emphasizing vibrant, neon-colored volleyball shorts, T-shirts, and related surf-inspired casual items that captured the Southern California lifestyle.[4][33] This initial focus on seasonal, activity-specific apparel established the brand's reputation in the late 1980s among youth and beach culture enthusiasts.[10] By 1991, Mossimo diversified beyond pure beachwear, introducing sweatshirts, knits, and sweaters to extend its offerings into year-round casual attire.[36] This expansion reflected a strategic shift toward broader lifestyle clothing, appealing to urban and streetwear influences while maintaining a sporty aesthetic.[37] In 1995, the line further broadened to include women's apparel and men's tailored suits, marking entry into gender-diverse and more formal categories that aimed to elevate the brand's market positioning.[4] The 2000 licensing agreement with Target accelerated Mossimo's transition to mass-market, everyday apparel, encompassing shirts, jeans, jackets, and accessories for youth and teens, distributed exclusively through the retailer.[19] Following Iconix Brand Group's 2006 acquisition, the portfolio expanded into over 15 categories, including sportswear, denim, footwear, swimwear, and home products, targeting men, women aged 25-55, and children to achieve global licensing scalability.[33] This evolution diluted the original beach-centric identity but enabled sustained revenue through diversified, accessible fashion lines.[38]