• 

  Bernard Mariette

Belt tightening on the way

Is Quiksilver ready to dump Rossignol? It sure sounded like it today at the ICR XChange conference.

CFO Joseph Scirocco said the company is reviewing alternatives to the continued ownership of its equipment business which has “whipsawed profitability,” he said.

Quiksilver’s two divisions – hardgoods and apparel – are a “tale of two companies,” Scirocco said. Apparel revenues grew 20 percent last year, while equipment sales fell 22 percent.

Quiksilver is known as a great brand builder but not the best operator, Scirocco said. The company plans to change that.

Quiksilver will be a “better operator in the near future,” he said.

Chairman and CEO Bob McKnight.

In 2008, Quiksilver will:

 

• Drive growth in apparel and footwear

 

• Work on a global sourcing initiative

 

• Reduce expenses in a “significant way” to realize $20 million in annualized savings.

 

• Scale back its initial plans for new retail stores to preserve capital

 

• 

  Marty Samuels, left, and Bill
  Bussiere, president and CFO,
  respectively, of Quiksilver Americas.

• Use proceeds from any sale to pay down debt.

 

• Strike a balance between debt reduction and investment spending.

Other members of the Quiksilver team were on hand: