Quiksilver hangs hat on emerging markets
US surfwear brand Quiksilver has reported a decline in profit and revenues in the first quarter but says its continued growth in emerging markets will propel its Profit Improvement Plan.
While overall revenues were down 2% to $392 million, its emerging markets business grew 32% with particularly large increases in Brazil and Russia.
“What's great about the Brazilian market is that the prevailing model is through franchising partnerships,” said CEO Andre Mooney, “so we believe that we can get some substantial growth there without a huge consumption of capital in the process.”
In terms of the group's brands, Quiksilver's revenues decreased $11 million, or 6%, to $163 million; Roxy increased $6 million, or 5%, to $117 million; and DC decreased $4 million, or 4%, to $102 million.
