Quiksilver launches ‘aggressive’ cost-cutting plan
20/05/2013
The initiatives focus on prioritizing the company's core brands, 'globalising' certain functions and reducing its cost structure. It will sell some non-core brands, invest in emerging markets and e-commerce and close underperforming stores,
"Our plan is designed to enhance the performance of our three flagship brands, Quiksilver, Roxy and DC," said Andy Mooney, Quiksilver CEO. "We expect that the initiatives will, over time, result in significantly higher profitability, enhanced working capital efficiency, reduced overhead spending and an improved competitive position."
The company expects that by 2016, earnings will improve by $150 million, of which about half will come from supply chain optimisation and the other half from corporate overhead reductions, licensing opportunities and improved pricing management.
"We divested several non-core brands, VSTR and Summer Teeth, and discontinued the Quiksilver women's product line to clarify that brand's position," added Mr Mooney. "We also significantly pared down our roster of sponsored athletes, and have continued to right-size the employee base."
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