Huntington Beach, Calif. — Neither an acquirer or an acquiree be.
That was among the messages delivered by Bob McKnight, Quiksilver chairman and chief executive officer, at the firm’s annual meeting here Friday.
The business of surf, skate, snowboard and other youth lifestyle apparel has been strong enough that the firm has been approached by others as an acquisition target, but the company hasn’t yet heard the offer that would pull it off its course to become a $1 billion firm.
"I believe we’re on the radar screen," McKnight said in response to a question from the audience. I’ve had conversations with other ceo’s, but nothing’s gotten serious."
At the same time, Quiksilver isn’t seeking to buy more companies after coming off its buying binge in 2002 that included the purchase of Beach Street Inc., operator of 26 Quiksilver outlet stores, and its Asia-Pacific license in 2002. Those developments and the rapid growth of its Roxy brand helped the company, in the year ended Oct. 31, expand sales 13.7 percent to $705.5 million, with European revenues growing 26.3 percent to $282.7 million. Net income outpaced topline growth, expanding 34.3 percent to $37.6 million. Its stock in the past year has appreciated 42 percent while the Standard & Poor’s 500 has gone down 24 percent.
On Friday, shareholders approved a 2-for-1 stock split, effective May 8 for holders of record April 30, while shares closed up 49 cents, or 1.6 percent, at $31.39 in New York Stock Exchange trading.
Since beginning the new year, Quiksilver’s seen first-quarter earnings more than double, up 112.8 percent to $6.6 million, while sales rose 30.7 percent to $192.1 million. Additionally, the firm has dipped its toe in more deeply to the western Pacific, partnering with Hong Kong-based Glorious Sun Enterprises to open five to 10 stores in the area by early 2004 and also focus its Asian sourcing activities.
"We’re able to move forward with one voice with worldwide control of our brand, distribution and image," McKnight said. "The tone of our business is excellent and that’s patently gratifying as a number of our competitors are struggling."Chief financial officer Steve Brink expects the Asia-Pacific region to represent 9 percent of business in 2003, a new sales source replacing royalty income from the region.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion