Bob McKnight
Chief executive, Quiksilver Inc.
McKnight, a sur-fer turned surfwear king, made a big bet in 2005.
In July, Huntington Beach-based Quiksilver paid about $300 million for French ski products maker Skis Rossignol SA. The deal has been wrought with concerns, from Rossignol’s impact on profits to whether Quiksilver overpaid for the company.
So far, so good: For the three months ended Oct. 31, Quiksilver saw sales jump 82% to $637 million. Net income rose 35% to $34 million in the quarter.
The quarterly results gave some wind to Quiksilver’s shares, which slumped in 2005 on concerns about Rossignol.
But 2006 could be the deciding year for the Rossignol buy.
Quiksilver didn’t offer an updated outlook for the year with its recent quarterly results. In October, the company said profits for the 12 months ended Oct. 31, 2006, could come in 11% lower than what analysts had expected, in part due to restructuring at Rossignol.
,Michael Lyster
Seth Johnson
Chief executive,
Pacific Sunwear of California Inc.
Johnson, who took over Anaheim-based teen retailer Pacific Sunwear in April, saw slower sales growth last year. The longtime Wall Street darling even missed expectations with its first results out under Johnson.
But PacSun still fared better than other retailers for much of 2005, turning in a strong third quarter. That made for a pretty good start for Johnson.
The unfinished business: a turnaround at the company’s hip-hop d.e.m.o. stores and the launch of a third chain, One Thousand Steps, which is set to sell shoes and accessories.
The company has a lot riding on the new chain amid slower growth at its dominant PacSun surfwear stores and stumbles at d.e.m.o., which saw fashion missteps hurt sales in 2005 but is rebounding.
PacSun was among those pushing promotions and discounts to spur holiday sales, according to a report from Goldman Sachs Group Inc.
,Michael Lyster
