Quiksilver suffered the fate of expanding faster than demand could keep up. They took out huge debt, sponsored events and over 500 athletes everywhere, and had many different overlapping product lines requiring hundreds of suppliers, design studios, and manufactures.
Today they are trying to cleanup that mess and I am very happy with their plan. They are cutting out the niche suppliers focusing on bulk orders, reducing their design studios to two, and consolidating product lines to three brands. Quiksilver will be focused on surf, DC on skate, and Roxy on women clothing. They are also dropping most of their athletes and event sponsorship (dominated by RedBull and GoPro today) and concentrating instead on improving the retail store. To accomplish this they have so far reorganized the executive team. CEO Andrew Mooney joined this year formally from Disney where he ran the Consumer Products division and previously Nike. Kasey Mazzone joined as Global Head of Supply Chain from Gap\Levi, and Steve Finney as Head of Retail and E-Com formally from Disney.
I plan on taking a starting position in Quiksilver soon. Right now they are dumping inventory and closing under performing stores to bring net income into the positives. Once that happens the stock should jump up.
