Quik is the poster child of a company that’s done what it needed to do following the twin blows of the Rossignol acquisition and the recession. As somebody who’s done a bit of turnaround work, I can tell you it’s no fun, for either management or employees, to be dealing with negative stuff month after month. Quik maybe has a little more work it wants to do on its balance sheet, but it’s largely out from under the reverberations of that deal though, like all of us, not of the recession.
I still have the same question for Quik (and for other brands) that I had before; how do you grow sales? You can’t improve profitability by controlling expenses and improving gross margin forever. I imagine the new Quik women’s brand and DC’s efforts in racing will be part of the answer. They note in the conference call that 95% of Roxy’s customer base doesn’t know that Roxy is related to Quik. Partly as a result of that, they believe there’s room for a Quiksilver Girls brand. It will debut in spring, 2011 and be directed at the 18 to 24 year old market.