Ask anyone between 10 and 30 if they would like some new Quiksilver clothes. pm buying these shares must be over 50 and think the once great brand can be brought back from the dead.
As reported this morning, Sears and Target sales were soft... just think, on top of a string of lousy quarters, ZQK's numbers will suk even more for the latest Q. They should ship all of their inventory to Africa and undeveloped Asia where they have a chance of finding people who will still pay 40 cents for shirts with the Quik logo. LOL
See you all on the round 4 collapse below $5 within weeks.
I did exactly that - asked the teenagers. As I anticipated, I was told that none of the brands were popular amongst the teenagers. I was told that the DC (Ithink that's the one.....) was still seen around a bit but apparently, it's not exactly what the the kids want these days. Lululemon down big today too - that tells me that consumers are not buying activity specific apparel..... I have been a snowboarder all my adult life and my wife, many years ago, would quite often buy Roxy products. I actually don't know how well the Roxy brand is selling relative to other snow apparel but it certainly seems to me that the consumer has really cut back on this segment. Snowboarding clothing should be considered a luxury item if you already own some. Most people don't 'need' more than one outfit and it's not cheap. I've opined before on these boards recently that although it may be comendable what management is doing, it seems like it's too little, too late. I've been short for a couple of months and I don't plan on covering based on the news being released ATM.
DC is the shoe piece... really shittey skateboard sneakers looking dated to 2001 and that no one wants and other casual shoes in the $65+ bucket. Listen to the last conf call -- they said they have studied the brand and, in code, acknowledged that the brand is dead and needs to be rethought and entirely revamped to come in at price points below the thousands of competing brands/models priced below $55 pair. So let's see, a company once famous for its Quiksilver brand's superior quality and exclusivity of lifestyle cache is going to further constrain offerings and go down hill on quality and price to compete with Asian company offerings? GFL
One "analyst" calling in with a question on DC brands listened to that answert and said, "Good [F] Luck on that!" before hanging up.
There are still many pm owning this who apparently think ZQK can turn this around. NFW. They need to shut down the branding and start over with something new and cool -- anyone familiar with the teen and young adult fashion business can see that, even if mid life pm can not.
Have a look at the last few Qs. On EVERY product line: down revs, down ebitda except cost reductions from annihilating staff and marketing, down earnings with one exception... online sales up 20% last Q. OTP, a 20% increase in peanuts is still trivial peanuts.
And the new marketing and design approach? Holy S, this once proud and great Quik brand will now be designed and marketed by a Chinese firm? How do you spell "Hindenburg"?