Surfer babe Roxy is caught in fast fashion’s riptide.
The Quiksilver Inc. brand, which largely created surf-inspired clothes for girls and young women in the 1990s, is struggling in the era of trendy, cheap clothes known as fast fashion.
Fast fashion retailers and clothing makers proved a hit during the downturn by quickly churning out inexpensive clothes inspired by pricier designs.
Think retailers such as Forever 21 Inc., Abercrombie & Fitch Co. and H&M Hennes & Mauritz AB.
Fast fashion’s rise has taken a toll on Roxy, which thrives on the loyalty of its wearers.
“It’s tough,” said Heather Quintana, women’s head buyer for Val Surf Inc., a Valley Village-based retailer that runs several shops selling clothes inspired by surfing and other action sports. “Forever 21 can create a knockoff in like two months. It’s amazing. Because there’s less brand allegiance, that really affects us.”
Fast fashion has created “a continued challenging environment,” for Roxy, wrote B. Riley & Co. analyst Jeff Van Sinderen in a recent report.
Roxy makes up about a third of Huntington Beach-based Quiksilver’s nearly $2 billion in yearly sales.
The company doesn’t break out specific figures for Roxy. Based on the brand’s percentage of Quiksilver’s total revenue, Roxy sales for the 12 months through October are estimated to be down 17% from a year earlier to $650 million.
The company’s overall yearly sales fell 13% to $1.9 billion.
Roxy won’t be following in fast fashion’s footsteps, Chief Executive Bob McKnight said on a December conference call.
“We can’t ever win with that game,” said Randy Hild, executive vice president of marketing for Roxy. “We’re aware of it, but we can’t be a Forever 21 or a vertical retailer. They’re really good at what they do. We pride ourselves on continuing to build on the strength of our brand as a lifestyle brand.”
The challenge for Roxy is to “dramatically distinguish itself” in a market saturated with trendy clothes sold at a discount, said Todd Slater, an analyst with Lazard Capital Markets LLC.
Even in good times, Roxy’s market is tough, according to Gloria Baume, fashion director for Teen Vogue.
Teen girls “tend to be quite fickle,” she said.
Trends for spring, according to Baume: military looks with khaki pants and fitted, shrunken army jackets; “world traveler” pieces, or clothes fitted with ethnic details; and, in what could be a good sign for Roxy, vintage ’70s surf T-shirts.
But what is “hot today can be gone tomorrow,” Baume said.
And whatever the trends are, fast fashion retailers are likely to be all over them, she said.
“Forever 21, H&M, American Apparel—they all give you something you want to buy at an affordable price,” Baume said. “It’s great because they’re always on trend. Young women feel what they see in magazines or see on the red carpet. Generally, those stores cater to that type of merchandise. If (“Twilight” actress) Kristen Stewart wore an amazing red dress, then Forever 21 will have like three similar red dresses.”
An obsession with celebrity style and fashion trends has been a factor in surfwear’s slump.
“It definitely became a little less hip to dress in surf clothing,” Val Surf’s Quintana said. “There was a major trend against logos, and Roxy wasn’t quick to follow that. They’re now getting away from that.”
Val Surf has been carrying fewer Roxy clothes, she said, but that goes with all juniors labels.
“None of the brands we carry for juniors has seen growth in the past three years,” Quintana said.
Irvine-based Billabong USA, Costa Mesa-based Volcom Inc. and Irvine-based O’Neill Clothing are some of the stronger juniors labels, she said.
Roxy still has its strengths. The brand’s swimwear and sandals do well at Val Surf, Quintana said. And its latest burnout T-shirts—worn tees that look almost see through—are popular.
Quiksilver’s Hild said shoes for the most part have seen good sales as well as snowboarding garb and Roxy’s more technical sports clothes.
It’s the sportswear or surf-inspired clothes that have been overwhelmed by the fast, cheap fashion phenomenon, he said.
That’s forced Roxy to regroup. It named Summer Rapp, the designer charged with the Quiksilver Women’s line, as head designer for the brand.
“Summer is good about understanding our balance,” Hild said.
The balance revolves around staying true to the surfer girl lifestyle and keeping in line with fashion trends, he said.
“We gotta be cut out for more than logo tees,” Hild said.
Brand Name
A big move came late last year when Roxy struck up a partnership with big-name fashion designer Cynthia Rowley. The line, Cynthia Rowley for Roxy, debuts in March at Barneys New York and at the Parisian shop Colette.
The collection eventually will be featured on Roxy’s Web site and later sold in Barney’s in Los Angeles and select American Rag stores.
“It’s the first time my brand will be at a store of that level,” Hild said. “It will give us more exposure to an audience that doesn’t know Roxy or think of it.”
Roxy also has a snowboarding collection with snowboarder Torah Bright and a new surf-wear line by surfer Kassia Meador. The surf-wear line is set to have more urban flair and probably will appeal to an older market, according to Hild.
Roxy also is working to make more fashionable clothes and accessories quicker, Chief Executive McKnight said on the recent conference call.
The brand is embracing another phenomenon—fashion blogging. It has a whole network of bloggers, who in essence are fans the brand works with on a regular basis. They receive quarterly packs of garb so they can see and wear Roxy products.
In return, they offer input and feedback as well as blog about the clothes and accessories.
Roxy could rebound in early 2011, Hild said, as tastes move away from dark, urban clothes.
The brand’s spring and summer lines this year feature brighter colors and some neon and prints, he said.
Despite challenges, Roxy still is a favorite, according to Teen Vogue’s Baume.
“They are always thinking, moving ahead,” she said. “They understand who their customer is.”
Having Teen Vogue on your side is good, according to Quintana. People come into Val Surf stores looking for an item that was in Teen Vogue or on Roxy’s Web site, she said.
That helps Roxy stand out a bit, according to Quintana.
“It’s hard to sell a $45 dress when there are really nice ones for $20,” she said.
Gomez is a former Business Journal editor and freelance writer based in Long Beach.
