TechCrunch  Feb 6  Comment 
 Now that we’re halfway through winter, what better time to unveil a pair of smart skis? The prototype is the product of a collaboration between two French companies — PIQ and Rossignol — what the pair are referring to as “first-ever...
The Australian  Jan 29  Comment 
A deal stitched together in the US overnight has brought Quiksilver back to life.
The Australian  Jan 28  Comment 
Surfwear retailer Quiksilver will emerge from US bankruptcy next month after approval of a $US600m refinancing deal.
The Australian  Jan 26  Comment 
Australian-founded surfwear retailer Quiksilver could be a step closer to getting out of bankruptcy in the US.
Financial Times  Dec 2  Comment 
World’s largest ski maker branches into fashion amid talks to buy French bicycle group Time
The Australian  Oct 15  Comment 
Surf retailer Quiksilver has won US court approval for private equity firm Oaktree to sponsor its restructuring.
Wall Street Journal  Sep 10  Comment 
Quiksilver got preliminary approval on a $175 million bankruptcy financing package linked to a debt-for-equity swap that would give Oaktree Capital control of the restructured surfwear company.
The Australian  Sep 10  Comment 
The Australian  Sep 10  Comment 
Quiksilver has blamed strikes at US ports for helping to push the company into bankruptcy.
SeekingAlpha  Sep 10  Comment 
TheStreet.com  Sep 9  Comment 
NEW YORK (TheStreet) -- Quiksilver  stock is retreating by 79.14% to 1 cent in pre-market trading on Wednesday morning, after the company's U.S. division filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of...


Quiksilver (NYSE: ZQK) designs and sells sportswear and equipment for young, outdoorsy costumers. Its Roxy and Quiksilver brands, which together account for almost 60% of revenue, sell casual apparel, wetsuits, and winter gear, while its popular DC brand targets young skateboarders. The company sells its products through its own company stores and through department and sports specialty stores. The company earned $2 billion in revenue but incurred a net loss of $192 million in 2009.[1]

In a sluggish economy, retailers like Quiksilver suffer because consumers cut back on spending on discretionary items. Rather than spending money on full-priced brand name items, consumers can find the same items for lower prices at discount retailers like TJX Companies (TJX).

Company Overview

Quiksilver brands represent a casual lifestyle for young-minded people that connect with our boardriding culture and heritage. The company believes that surfing, skateboarding, snowboarding and other outdoor sports influence the apparel choices made by consumers as these activities are communicated to a global audience by television, the internet, movies and magazines. People are attracted to the venues in which these sports are performed and the values they represent, including individual expression, adventure and creativity. The company's products are sold in over 90 countries in surf shops, skateboard shops, snowboard shops, proprietary stores, and select department stores.[2]


  • Quiksilver (39% of revenue) - include shirts, walkshorts, t-shirts, fleece, pants, jackets, snowboardwear, footwear, hats, backpacks, wetsuits, watches, eyewear and other accessories.
  • Roxy (33% of revenue) - is a brand for young women that includes a full range of sportswear, swimwear, footwear, backpacks, snowboardwear, snowboards, bedroom furnishings and other accessories.
  • DC (23% of revenue) - specializes in performance skateboard shoes, snowboard boots, sandals and apparel for both young men and juniors.
  • Other Brands (5% of revenue) - includes the swimwear labels Raisins, Radio Fiji, and Leilani, the skateboarding brand Hawk, and the snowboard/accessories brands Lib Technologies, Gnu, and Bent Metal.

Product Categories[4]

  • Apparel - 66% of net revenue
  • Footwear - 20% of net revenue
  • Accessories - 14% of net revenue

The majority of Quicksilver’s revenue comes from its apparel segment, which the company sells through its network shops and in department stores. With the weakness in its sporting goods business, the apparel segment is likely to increase in the future, as it has generated strong earnings for the company.


  • Core market shops - 39% of revenue
  • Specialty stores - 37% of revenue
  • Department stores - 10% of revenue
  • US exports - 9% of revenue
  • Distributors - 5% of revenue

Like many sporting goods companies, most of Quicksilver’s sports apparel and equipment are sold in specialty stores and sports shops, which account for over three quarters of revenue. Included in this number are some 500 stores that Quicksilver either owns or with which it maintains licensing arrangements. The company distributes casual apparel through Macy’s, Dillard's, and Bloomingdales department stores, which account for about a tenth of revenue.

Geographically, the company's revenue distribution is:

  • United States - 38% of revenue
  • Other Americas - 9% of revenue
  • France - 11% of revenue
  • United Kingdom and Spain - 11% of revenue
  • Other European Countries - 18% of revenue
  • Asia/Pacific - 13% of revenue

Business Growth

FY 2009 (ended October 31, 2009)[1]

  • Net revenue fell 13% to $2 billion. Revenue decreased in all of the company's geographic regions due to the struggling global economy.
  • The company incurred a net loss of $192 million, an improvement over the net loss of $226 million in the previous year.

Trends and Forces

Economic Conditions

Recent trouble in the credit markets, coupled with high gasoline prices, have the potential to depress consumer spending, thereby impacting Quiksilver's bottom line. If these factors lead consumers scale back on vacation travels to beaches and ski resorts, Quiksilver's equipment business is particularly vulnerable.

However, some factors may serve to protect Quiksilver's bottom line: its products are moderately priced and are focused on a very specific segment of the market—those interested in purchasing wetsuits and snowboards have a relatively small variety of businesses to choose from.

Dependency on Department Stores

Department stores in the United States have undergone significant changes in recent years. In response to declining margins, stores have implemented tighter inventory controls and have scaled back the quantities of merchandise that they purchase from wholesalers like Quiksilver. As a means of increasing market share, companies have also sought to differentiate themselves from the competition by demanding exclusive contracts and store-specific private labels (e.g. Ralph Lauren's "American Living" line for J.C. Penney).

Although department stores currently account for only 10% of Quiksilver's distribution, retail apparel and footwear have been the company's strongest segment in recent years. As the company seeks to capitalize on this growth (and shy away from its equipment business), department stores may become a bigger part of Quiksilver's business model.


Quiksilver competes with a variety of brands in the outdoorswear and sporting goods industry. V.F. Corporation owns Reef and Vans, two popular brands in the surfing community that compete against Roxy and Quiksilver for that community's dollar. Quiksilver also competes with Nike, as both companies sell skateboarding and aquatic apparel and footwear.


  1. 1.0 1.1 ZQK ZQK 2009 10-K "Selected Financial Data" pg. 18
  2. ZQK 2009 10-K "Introduction" pg. 1
  3. ZQK 2009 10-K "Products and Brands" pg. 2
  4. ZQK 2009 10-K "Product Categories" pg. 2-3
  5. ZQK 2009 10-K "Customers and Sales" pg. 4-5
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