In the race for corporate “efficiencies” Quiksilver is making some pretty big changes.
In addition to COO and Global Brand President Craig Stevenson resigning (he’ll be paid through October 31, 2013), the company is apparently cutting the snowboarding team (but keeping Travis Rice) and cutting the skateboarding team (but keeping Tony Hawk). The Quiksilver surf team has also been reportedly trimmed by several surfers. There are also rumors that Quiksilver Women, the Waterman Collection, the VSTR brand and Dane Reynolds side project Summer Teeth were also set aside.
Over at DC Shoes they’ve cut their entire BMX team and their surf team. There is also mention of auto (and co-founder Ken Block himself) being cut as well. As one surf industry stalwart ironically put it, “Can’t wait until the same thing happens at Billabong.”
One thing to remember: Hollisterdoesn’t spend a dime on “core teams” and they don’t seem to be having any problem in the “So Cal inspired clothing for Dudes and Bettys” space. Still no official word from Quik, but then again, their information distribution department never has been very effective. We’ll let you know if and when anyone shares any information on what is obviously a very bad day for action sports athletes, media, and the industry in general.
[Editors Note: The details in this post have been in flux all day thanks to various sources adding and subtracting details. So far, no replies to emails sent to Quiksilver corporate PR and other contacts.]
The Vladimir Gusinsky Living Trust (click the link it’s worth it) has reportedly sued Quicksilver CEO Bob McKnight and the board of directors over some restricted stock that was given to several top executives at the company, according to a story in BloombergBusinessweek.
Awards of 4 million restricted stock units to McKnight, Pierre Agnes, president of Quiksilver Europe, and Craig Stevenson, the company’s chief operating officer, violated a 2000 stock incentive plan, according to the complaint filed today by the Vladimir Gusinsky Living Trust. . . The awards are “a waste of the company’s corporate assets and a breach of fiduciary duties owed to the company and its shareholders by the members of the compensation committee,” the trust said in the filing in Delaware Chancery Court.
The trust apparently wants Quiksilver to “improve its corporate governance procedures” and recoup some “unspecific damages” according to the story. What good is being CEO if you can’t give yourself a little stock everyone once in a while?
A Stifel Nicolaus analyst named Jim Duffy reportedly upgraded his rating on Quiksilver to buy from hold and the stock jump a whopping 38 cents to $3.78 a share on Monday, according to a story in Businessweek.
The company’s updated management could bring new energy to the company. Some leaders are also approaching deadlines in their restricted stock grants that would provide a strong incentive for them to get the stock price back up. . . Duffy also said that early hints of stabilization in Europe and some lower administrative costs could improve Quiksilver’s revenue and margin picture in 2013.
Gary Wall, GM of Quiksilver Australasia, said the move reflects the ongoing evolution of the online marketplace. . . “It is important to understand that eBay has evolved from an auction and secondhand marketplace to a serious full price channel and today the majority of eBay listings are fixed price and new product sales,” Wall said. . . “EBay is one of the biggest online clothing sellers and customers have been purchasing our products on eBay for many years but unfortunately from unauthorised sellers where we cannot guarantee authenticity of the product or appropriate customer service levels.
eBay would seem to streamline right in with Quik’s TJ Maxx, Ross, and Tuesday Morning distribution channel.
Have to be honest. The Quiksilver Pro France 2012 kind of snuck up on us. Before we knew it eight heats of Round 1 were already over. What bummed us most was missed wildcard Dane Reynolds sending ASP number 2 Joel Parkinson directly into round two.
“The waves were pretty fun out there when they came through,” Reynolds said. “It’s nice and spread out so Joel (Parkinson) and Bede (Durbidge) were kind of down on their own peak and I was up on my own peak which is always nice. I’m not much of a hassler. Competition is fun for me and I don’t put pressure on myself to do well. I do like to see how I perform in this environment though and that’s why I do these.”
We do so like seeing Mr. Reynolds surf when he is in the mood. Looks like we’ll have to wait until Round 3 now. The Quiksilver Pro France waiting period runs September 28 – October 8, 2012. Follow the jump for the official word from the ASP and complete results. [click to continue…]
Australia’s Business Spectator is raising the bar on Billabong takeover speculation by suggesting that Rhone Group, the private equity firm that owns 20 percent of Quiksilver, may or could be looking to snatch up Billabong if the price is right.
While it’s not clear whether Quiksilver or Rhone, a New York-based private equity firm, is eyeing the situation, it’s fair to say it’s likely to be Rhone who has the final say on any move given Quiksilver’s history of debt issues and market value of $US513 million — below Billabong’s at about $650m.
Guess using the words “could” and “might be” allow the press to say pretty much anything they want. We can’t really imagine a scenario where Quiksilver’s problems could be solved by adding Billabong’s to their list. We’d like to think Quik learned their lesson with Rossignol.
Few things in life go together better than ice hockey and surfing. That’s apparently why Quiksilver has announced a new merchandising agreement with the National Hockey League to produce “co-branded board shorts” (puck shorts?), according to a story on SportsPro.com.
“We are excited to extend the reach of our Quiksilver brand in partnership with the NHL,” said Quiksilver Americas executive vice president Steve Tully. “Hockey fans in the US and Canada will now have the opportunity to experience Quiksilver’s iconic product category — boardshorts— in collaboration with their favourite NHL teams.”
According to NHL VP of Cosumer Products Jim Haskins, “The NHL boardshorts line will feature Quiksilver’s signature mix of surf and skate-inspired colours and styles designed for the young NHL fan.”
First the NFL, now the NHL? At this rate Quik’s next agreement will probably be with NASCAR and be distributed in Walmart. Just think of the revenue that deal would generate?
Looks like a bad Monday (July 2, 2012) morning for the troops at Quiksilver Inc. as more than 40 employees are reportedly in the process of getting cut from the payroll.
In an email sent to employees this morning “on behalf of Rob Colby and Craig Stevenson” (Quiksilver Americas President and CEO respectively) the following was outlined:
We have identified a number of initiatives that will help us to achieve our goals, many of them associated with globalizing our business such as increasing the number of global products we sell, centralizing certain functions, and leveraging our marketing efforts across more of the globe. . . . As a result of our ongoing review, we are taking some actions today that result in the elimination of certain positions within the Americas region, specifically impacting 44 current employees. The employees whose jobs are being eliminated will be individually notified today and provided with a fair package of financial and transition support. Our Human Resources team along with department leaders will be personally involved in every notification conversation.
Some of the casualties are reportedly an SVP of Sales and a CFO. More info will be released to employees during a town meeting.
How nice would it be to run a business where losing $5.1 million in a quarter is good news? For Quiksilver a $5.1 million loss is much better than last year’s $81.7 million Q2 loss, according to a story in Businessweek.
The surf-inspired clothing and gear company posted a loss of $5.1 million, or 3 cents per share, for the quarter that ended April 30. That is down from $81.7 million, or 51 cents per share, in the same quarter last year, when the company incurred a $74.1 million non-cash goodwill impairment charge on its business in Australia and Japan.
Quiksilver’s stock was up 25 cents to $2.69. For a complete transcript of the most recent conference call, click here.
Quiksilver certainly is attempting to downplay some of their previous over-the-top luxury helis-and-yachts surf films with No Agenda. Here’s what they’re saying about the film:
No Agenda is not about selling boardshorts. It’s not about the latest marketing advertisements and campaigns. It’s not about champagne, leather couches and expensive boat trips. It’s all about beach traffic, bottom turns, sun burns, cold beer, ding repair, dirty wax, flat spells, f#!king kooks, getting burned, local legends, lost luggage, magic boards, nut rash, lofty punts, onshore wind, perfect barrels, sandy hair and sharing waves. It’s good, it’s bad, it’s surfing. This movie has No Agenda.
Well, except for that whole “promoting the brand” thing, of course. But then again, it looks good. Click the link for film tour dates beginning June 15, 2012 in Miami.
In the race for corporate “efficiencies” Quiksilver is making some pretty big changes.
