Huntington Beach-based Quiksilver Inc. is braving new waters with a line of women’s clothing that’s more style than surf.
The clothes, set to debut at the company’s stores, Nordstrom and other retailers, are designed for 18- to 24-year-old women in college or just entering the workplace.
That’s a far cry from the fun in the sun inspiration behind Quiksilver’s other clothes for surfers and wannabes across the country.
“We wanted to do something new and different,” said Steve Tully, president of the Quiksilver brand for the company’s Americas division.
Quiksilver sells clothes under the Quiksilver, Roxy and DC brands. It is far and away the biggest seller of clothes inspired by surfing, skateboarding and snowboarding. But Quiksilver is venturing into a crowded field for mainstream women’s clothing.
The company has spent the past two years developing its line to appeal to young women,a group that has been underserved by surfwear makers, according to Tully.
Building on Roxy
Quiksilver hopes the line will connect with women who grew up wearing Roxy,the company’s clothing line for teen girls and young women that debuted in 1990 and now is Quiksilver’s second biggest brand, generating about a quarter of its $2 billion in yearly clothing sales.
“We’re going after women who wore Roxy when they were younger but are looking for clothes that fit their mature lifestyle,” said Summer Rapp, Quiksilver’s vice president of design. “Our target customer could be in college or starting her career and wants clothes that reflect where she is in her life.”
The line includes jeans, dresses, shirts and jackets that sell from $34 to more than $100. The clothes are designed to be worn for years without looking dated, according to Rapp.
“We wanted to create a women’s line that had a timeless look to it,” she said.
Rapp describes the clothes as “sexy tomboy.”
Think short silk dresses with ruffled collars, cropped blazers and button down vests paired with white fitted dress shirts and tight, skinny-legged jeans.
The line bears the signature Quiksilver wave logo, albeit discreetly on zippers and buttons.
“Women usually want logos that are a little bit more understated,” Rapp said.
New Ground
Quiksilver and others, including Costa Mesa’s Volcom Inc., have done more fashionable shirts and jeans for men. But the company is venturing into new ground with its women’s line.
“Not a lot of action sports brands have designed women’s clothing that can be dressed up,” Rapp said.
The company only is going so far into fashion: “We’re not making runway dresses,” Chief Executive Bob McKnight recently told the Wall Street Journal.
There stands to be some overlap with Roxy. But Quiksilver “went into it without the intention of cannibalizing Roxy and our other core brands,” Tully said.
“Quiksilver’s brands are strong and it just wouldn’t make sense for us to do that,” he said.
One analyst is upbeat about the move.
“It’s a natural extension,” said Caris & Co. analyst Claire Armstrong Gallacher. “As their customer graduates from the Roxy brand it gives them something to buy.”
Clothes are Quiksilver’s bread and butter and a bright spot for the company as it looks to sell its slumping skis business acquired in 2005’s buy of France’s Skis Rossignol SA.
For the three months ended Jan. 31, clothes sales rose a better than expected 19% to $500 million.
But Rossignol drove a $15 million loss for the quarter, more than what analysts had thought.
The company said it plans to “reduce or eliminate” its winter sports equipment business and is courting buyers.
The women’s line, according to Gallacher, could help Quiksilver revive its image on Wall Street, where shares are off 40% in the past year with a recent market value of $1.1 billion.
“The women’s clothes could move the focus away from something that was a burden to the company to something that could be a positive thing,” she said.
Quiksilver’s design, production and distribution prowess should help in the launch of the women’s line, Gallacher said.
Competition
Quiksilver is set to face a lot of competition in the overcrowded women’s clothing business.
Competitors include Philadelphia-based Urban Outfitters Inc.’s Anthropologie and Free People brands and New York-based Liz Claiborne’s Lucky Brand Jeans. Both companies offer similar looks and prices.
And Quiksilver will be facing off with cheap yet chic clothes made by companies such as Sweden’s H & M; Hennes & Mauritz AB, Irvine-based BB Dakota Inc. and even Target Corp.
Quiksilver’s ability to edge out competitors ultimately rests with its designs and marketing, Gallacher said.
“I think there’s demand for a Quiksilver women’s product but it will take some time,” she said. “The feedback I’ve heard has been positive so far.”
The company won’t disclose how much it spent developing the women’s line or how much it’s expected to generate in sales.
“We don’t expect the women’s line to move the needle financially right away,” Quiksilver’s Tully said. “This will be a successful, long-term brand extension for us.”
Marketing Push
Quiksilver is hoping to build a buzz around its women’s line.
Earlier this month, the company opened a studio called siteLA in Los Angeles’ Silver Lake neighborhood to provide exhibition space for women artists, musicians and others.
Quiksilver’s women’s clothes also will be sold at the studio.
The company could come up with other new types of clothing, according to Tully.
“We’re always working on something,” he said.
