LOS ANGELES — The world of Roxy, the $400 million sister of board sports behemoth Quiksilver Inc., is about about to get bigger.
Steve Tully, global president of the Huntington Beach, Calif.-based Roxy brand, said plans are under way to relaunch its contemporary division, expand the activewear and interior decor categories and even add signature nutritional bars to a growing catalogue of products. Recently, the company revealed plans to introduce Roxy branded skis, and it is in talks to reenter the beauty arena with skin care and fragrance.
"These are great opportunities and, most importantly, they're good for the brand," Tully told WWD.
Roxy is still hammering out launch dates, names and prices for some of the new categories, he said, although skin care and fragrance could be released in 2006. Rollouts of ski apparel, energy drinks and protein bars, as well as rugs, bedding and other offerings under the Roxy Room label, are expected next year.
Tully said a more focused activewear line is at least a year away.
The contemporary collection, which will include Roxy in the name and target 21- to 35-year-old women, will bow in 2007.
Quiksilver started Roxy in 1990 and has nearly tripled the division's annual sales in the past five years. Roxy's ambitions parallel Quiksilver's wider goals to stretch beyond its board sports roots, as demonstrated by its recent acquisition of French ski maker Skis Rossignol SA.
In recent years, the Roxy design and marketing teams have underscored their attempts at "aging up" the look of the brand, from merchandising to advertising.
Contemporary and beauty are not new directions for Roxy. And the megabrand, which has appeared successful in most everything else it's tried, can learn from its previous attempts.
In 1998, Roxy tried to launch a signature scent, sun care items and lotions. Two years later, it introduced the contemporary sportswear line Alex Goes.
But Tully conceded Roxy lacked the infrastructure and expertise to properly run the fragrance line, and the already beleaguered Alex Goes was closed in a rough retail environment following the terrorist attacks of Sept. 11, 2001.The new contemporary line will pick up where Alex Goes left off, Tully said.
As previously reported, Quiksilver has been in talks with L'Oréal SA for a fragrance. Tully declined to comment, though he said Roxy will team with a major beauty player.
Analysts said Roxy has a chance to succeed in these expanding lifestyle categories because the brand is strong and the surf lifestyle is popular.
Christy Lowe, who follows action sports companies for USBX Advisory Services LLC in Santa Monica, Calif., said Roxy actually occupies so much space in specialty surf shops that it needs to expand to other retailers and other categories to help further its growth.
Vera Van Ert, an analyst for Los Angeles' Wedbush Morgan Securities, said the new contemporary collection would fill a void for maturing customers who might find the core Roxy group skews too young.
Yet Sharon Lee, co-president of research and consulting company Look-Look Inc. in Hollywood, said retail presentation is particularly critical.
Competing against numerous women's fashion brands, a fledgling label must offer a complete, defined experience through which shoppers can consider its assets, Lee noted. "It could be stores within stores; it doesn't necessarily have to be their own stores."
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