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Quiksilver Looking to Clothes to Spur DC Shoes Unit

Huntington Beach-based Quiksilver Inc. is moving on plans to recharge its DC Shoes Inc. unit.

The surfwear maker has been revamping the Vista-based division’s management, including hiring a new president, Nick Adcock.

Adcock comes from DC’s Asia-Pacific unit. He has “energized the place” and “really hit the ground running,” said Marty Samuels, president of Quiksilver’s Americas unit in the company’s Dec. 16 earnings call.

DC Shoes, which Quiksilver bought in 2004, started out making skateboarding shoes and since has branched out to sandals and accessories.

Now it’s looking to boost sales of clothes, which Samuels said is “still quite small.”

DC hired a new design director to spearhead the changes.

“They are building a larger and more capable design and merchandising team for DC so that we can properly deadlock the (clothes) business of that brand,” said Bernard Mariette, Quiksilver president, during the call.

DC also is looking to hire for merchandising and design positions in apparel and accessories.

Expanding clothes at DC remains a “significant” opportunity, said Lizabeth Dunn, analyst at Prudential Equity Group LLC, in a Dec. 18 report.

DC clothes in retail stores are selling out fast, according to Samuels.

The unit could use the boost.

DC saw a “bit of weakness” in the quarter through July, Dunn said.

But DC showed gains in the three months ended Oct. 31, with strong sales in the U.S., Europe and Asia-Pacific, Samuels said.

Quiksilver doesn’t break out DC’s sales. The unit’s annual sales are in the $90 million range, a small chunk of Quiksilver’s yearly sales of $2 billion.

“We’re very optimistic about the improvements in the footwear business there,” Samuels said.

DC also has been getting more control over distribution.

Last year, Quiksilver bought DC’s British and Canadian distributors. Both have “strong growth prospects,” Chief Executive Robert “Bob” McKnight said in the company’s December call.

Quiksilver wants to “recommit” to DC’s core business, including skateboard shops, while experimenting some in department stores.


BDS Buy

Irvine-based BDS Marketing Inc. recently bought an Arizona marketing shop.

BDS, which focuses on retail marketing, bought privately held Channel Partners. The move is expected to allow BDS to offer clients improved services in several areas, including market development, training, sales and merchandising, according to Kristen des Chatelets, chief marketing officer for BDS.

“We’ve recognized over the last few years that as one of the last privately held companies in our industry we need to aggressively diversify our services,” des Chatelets said.

Channel Partners’ training programs are designed to help retailers during peak seasons and product launches, she said.

BDS plans to keep Channel Partners’ office in Gilbert, Ariz., and its 60 workers, according to des Chatelets. It has 3,000 workers companywide.

The initial response from clients of both companies has been “extremely positive,” des Chatelets said.

Clients include Sharp Corp., Canon USA, part of Japan’s Canon Inc., and Jaguar Cars and Land Rover North America, both part of Ford Motor Co.’s Premier Automotive Group in Irvine.


Neptune Upgrade

Tustin-based Neptune Consulting Group Inc. has revamped its Web site and started offering some new services.

The shop, which develops and maintains company Web sites, continues to offer Web hosting and site design. It’s expanded to a few areas, including network security, network monitoring and Web site marketing.

Rene Mente, Neptune president, said in a company newsletter that the shop discontinued some services “that are not nearly as profitable as the new services.”

They are dial-up Internet services and shell accounts.

The company revamped its Web site to reflect the changes. Plus, it added features to entice clients to use it more frequently, Mente said.

Among the changes: a new helpdesk system, which will help improve Neptune’s response time and track inquiries, a list of the most recent Internet worms and an online help section.

Mente said she’ll continue to upgrade the site to make it more functional.

Bits and Pieces:

Last week, I gave a peek at Irvine-based RiechesBaird Inc.’s outlook for 2006. The company also plans to hire three workers this year as it brings in more business. In 2005, the shop, which has 40 workers, hired five people.

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