Home / Knowledge / News / Apparel/Garments / Quiksilver announces multi-year profit improvement plan
Quiksilver announces multi-year profit improvement plan
17
May '13
Quiksilver, Inc. announced an aggressive multi-year profit improvement plan designed to accelerate the company’s three fundamental strategies of strengthening brands, growing sales and driving operational efficiencies. The plan’s initiatives focus on prioritizing the company’s core brands, globalizing key functions and reducing its cost structure.

“Our plan is designed to enhance the performance of our three flagship brands, Quiksilver, Roxy and DC, and accelerate our path to sustained profitable growth,” said Andy Mooney, President and Chief Executive Officer of Quiksilver, Inc. “We expect that the plan’s initiatives will, over time, result in significantly higher profitability, enhanced working capital efficiency, reduced overhead spending and an improved competitive position.”

Important elements of the multi-year profit improvement plan include:

Brand Strength
- Clarifying the positioning of the three flagship brands
- Divesting certain non-core brands
- Globalizing product design and merchandising
- Licensing of secondary or peripheral product categories

Sales Growth
- Reprioritization of marketing investments to emphasize in-store and print marketing along with digital and social media
- Continued investment in emerging markets and E-commerce
- Improving sales execution

Operational Efficiencies
- Supply chain optimization
- Reduction of SKUs by over 30%
- SG&A leverage of 300+ basis points
- Centralizing global responsibility for key functions, including product design, supply chain, marketing, retail stores, licensing and administrative functions
- Closing underperforming retail stores, reorganizing wholesale sales operations and implementing greater pricing discipline

Mooney continued, “We have already begun taking action, having established a global organizational structure with global heads of footwear, apparel, supply chain, marketing and retail operations. We divested several non-core brands, VSTR and Summer Teeth, and discontinued the Quiksilver women’s product line to clarify that brand’s position. We also significantly pared down our roster of sponsored athletes, and have continued to right-size the employee base.”

The company expects that the plan, when fully implemented in 2016, will improve EBITDA by approximately $150 million, of which approximately one-half will come from supply chain optimization and the other half primarily from corporate overhead reductions, licensing opportunities, net revenue growth and improved pricing management, compared with 2012 results. More specifically, the plan calls for improvement, over the same period, in the following areas:

- Net revenues: compound annual growth rate of approximately 2.5%

- EBITDA: increase to at least 13 percent of net revenues

The company intends to share additional details regarding the profit improvement plan in its fiscal 2013 second quarter investor conference call in early June.

Quiksilver


Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X