Quiksilver Adds Space, Employees Near Headquarters
By JENNIFER BELLANTONIO
Quiksilver Inc. has added 112,000 square feet to its Huntington Beach campus, hired 50 warehouse workers and plans to add up to 30 more, according to a company official.
The maker of surf, skate and snow apparel recently signed a five-year lease for the extra space, part of a 265,000-square-foot building at 5559 McFadden Ave. that formerly was occupied by Boeing Co., according to Greg Ziegler, executive vice president of domestic operations at Quiksilver.
The building, owned by Irvine-based Sares-Regis Group, is near Quiksilver’s corporate office, production facility and main distribution center, which has been upgraded with new technology. The former Boeing building has two other tenants: Coast 2 Coast In Line Hockey Center and Gibo Kodama, which makes parts for in-line hockey rinks.
“There’s several things we’re using the building for, but primarily it’s a consolidation and cost savings for us,” Ziegler said.
He called the savings “substantial” but declined to give specifics.
The expansion allows Quiksilver to meet its expanding warehouse and distribution needs, Ziegler said, and shift some operations back in-house.
Specifically, the company is using the space to warehouse and distribute its shoes (a function previously performed by a third party in Los Angeles), and to store trade show equipment (formerly housed in outside facilities) and all of its blank T-shirts for screen printing.
Previously, the company housed portions of its blank T’s in its existing warehouse and at several storage facilities.
Ziegler said off-site storage “just became too expensive.”
By shifting all blank T’s to the new space, Ziegler said, the company also freed up room in its main building to house its golf division, Fidra, which is moving from a Santa Ana location.
“It’s going to make for a much more efficient and effective work environment having all our businesses on the campus site,” Ziegler said.
In the past 60 days, Quiksilver hired 50 employees to work in the warehouse, and Ziegler said the company is looking to hire 20 to 30 more.
“We’re all optimistic that business will continue to get better,” he said. “I think everyone’s feeling like there may be some blue sky at the end of 2002.”
Quiksilver is anticipating growth this year, particularly in its Roxy juniors division, though it has been trying to weather a tough retail environment.
For the fourth quarter, the company saw sales increase 12.2% to $170.1 million vs. the year-ago period. Net income for the quarter was $2.4 million, down from $9.8 million a year earlier.
The tough economy has prompted Quiksilver to retool some its business strategies, including slowing its domestic retail expansion.
