Quiksilver Has Change in Command : Transition: The surf wear company’s John Warner resigns as chairman and chief executive and will be replaced by founder Robert McKnight.

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

The change comes as Quiksilver is striving to improve earnings, which have been depressed by the recession and price-cutting in the apparel industry. But McKnight said Warner’s departure is unrelated to the company’s financial performance.

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

Under Warner, who has headed the company for five years, Quiksilver gained recognition as an industry innovator when it introduced neon-colored surf wear in the late 1980s. The wildly popular look helped boost the Newport Beach company to the top of the industry.

The neon rage soon attracted many imitators, however, who cut into Quicksilver’s sales. And when the popularity of the neon look faded, Quiksilver was slower than some of its competitors to respond to fashion changes, analysts have suggested.

McKnight will retain his title of president while adding those of chairman and chief executive officer.

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

As a consultant, the 43-year-old Warner will concentrate on the company’s new Na Pali subsidiary, 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 six months ended April 30, excluding the Na Pali unit, dropped 16.5% to $40 million from $47.9 million a year earlier. Earnings declined 13.7% to $4.4 million.

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

The Newport Beach company also announced some other managerial changes.

Randall L. Herrel, chief financial officer and treasurer, was given the additional title of executive vice president.

Four other executives were appointed vice presidents, although there will be no major changes in their responsibilities. They are: Danny Kwock, who heads marketing and promotion; Seth Ellison, head of merchandising; Steve Tully, national sales manager, and Greg Ziegler, who heads production and purchasing.

Quick Change at Quiksilver John C. Warner has resignedas chairman and chief executive of Quiksilver Inc. His position will be filled by the firm’s president and founder, Robert B. McKnight.

Share Prices Jan.: $13 Jun.: $12 Assets: $55.7 million No. of employees: 250 Shares outstanding: 6.3 million** 52-week price range: $28-$7 Monday’s close: $12 After five years of steady increases, Quiksilver reported 13.7% lower net income on sales that were off 16.5% to $40 million from the year-earlier period.

Sales ‘90: $91.2

Revenues ‘90: $9.5 *pro forma net income **weighted average, including options Source: Quiksilver Inc.