Bob McKnight, who co-founded Quiksilver in 1976, plans to retire as a senior executive of the company on Oct. 31, 2014. He will remain on the company’s board but will no longer be executive chairman.
Andy Mooney, the former Disney executive who took over as Quiksilver’s CEO in January 2013, has been elected chairman.
Pierre Agnes, global head of apparel as well as president of Quiksilver Europe, is taking on the title of president. Agnes had also been overseeing global marketing for Quiksilver and Roxy.
I believe now is the ideal time to transition into a non-executive role at Quiksilver, said McKnight. I have absolute confidence in Andy and his entire team, and I look forward to continuing to help guide the company as a member of the board of directors. As a significant shareholder, I am fully supportive of Andys elevation to chairman and delighted with Pierres appointment as president. They are the perfect combination to lead this company into the future.
McKnight owns about 3.3 million shares of Quiksilver, representing a 2 percent stake.
Since joining, Mooney has launched a turnaround plan that includes clarifying the positioning of its three flagship brands: Quiksilver, Roxy and DC; divesting certain non-core brands; globalizing product design and merchandising; and licensing of secondary or peripheral product categories. Cutting expenses as well as optimizing its supply chain, including reducing SKUs by over 30 percent, is also a priority. With the slowdown across the action sports channel, growth in the near term is expected to come from its direct-to-consumer channels and emerging markets.
It has been a privilege to work side-by-side with Bob, said Mooney. The opportunity to learn from him has been invaluable and I am grateful that the company will continue to benefit from his involvement as a board member, Pierre thoroughly deserves his augmented responsibilities and I look forward to continuing our close partnership.
In its fiscal third quarter ended July 31, the company reported a loss of $220 million, or $1.29 a share, after an asset-impairment charge of $183 million to write-off the goodwill of its European division. Revenues slumped 19.0 percent to $395.7 million due to steep declines in its wholesale channels in North America and Europe. Late product deliveries, largely the result of its transition to global demand planning, negatively impacted its sales performance and gross margin.
Andrew Sweet, lead independent director of Quiksilver, said, On behalf of the board and everyone at Quiksilver, I want to thank Bob for his many years of outstanding commitment and leadership. As a representative of Quiksilvers largest shareholder, I congratulate Andy and Pierre on their expanded roles. We are confident that the Quiksilver management team can significantly increase profitability and shareholder value.
