Founder to Replace CEO of Quiksilver Surf Wear

Quiksilver Inc., one of the leading names in the surf wear industry, said Monday that John C. Warner has stepped down as chairman and chief executive and will be replaced by the company’s president and founder, Robert B. McKnight.

Although Quiksilver’s earnings have been depressed recently, McKnight said Warner’s departure is not related to the company’s financial performance.

“It’s something we both wanted,” McKnight said. “He’s a real career-oriented guy.”

Under Warner’s leadership the past five years, Quiksilver introduced neon-colored fashion to the surf wear industry--a wildly popular look that helped boost the Newport Beach-based firm to the top of the industry.

But the neon rage attracted many imitators, which cut into Quicksilver’s sales. And when the neon look faded, analysts have said, Quiksilver was slower than some of its competitors to respond to fashion changes.

McKnight will retain his title of president while adding the positions of chairman and chief executive.

Warner will work as a consultant to Quiksilver at about his current level of compensation under an 18-month contract, McKnight said. Warner could not be reached for comment.

As a consultant, the 43-year-old Warner will concentrate on the new Na Pali subsidiary. It is a French designer and distributor of surf wear in Europe. When Quiksilver acquired Na Pali in February, it said the unit offered strong growth opportunities.

“John is excellent at helping to structure a distribution mechanism. That’s the original reason for bringing John in here,” McKnight said.

McKnight, 37, who founded the company 15 years ago, said he wants to eliminate any lingering perceptions that Quiksilver is slow to spot a trend.

Quiksilver has attributed its faltering financial performance to the recession and price competition in the garment industry. Sales for the second quarter ended April 30, excluding the Na Pali unit, dropped 19% to $24.1 million from $29.8 million a year earlier. Earnings declined 11% to $3.3 million.

Quiksilver stock, traded over the counter, closed Monday at $12 a share, off 25 cents.