Ashworth to Lead Quiksilver Golf Division

Sportswear maker Quiksilver Inc., which built its brand as a surf wear company but has since branched out into myriad markets, said Tuesday that it is teaming with golf wear pioneer John Ashworth to form a golf apparel division.

Ashworth, co-founder of the Carlsbad-based company that bears his name, will be president of Quiksilver’s new division, overseeing design, sales and marketing. Ashworth severed his ties with Ashworth Inc. a few years ago. The company’s line is one of the top sellers in golf shops.

Quiksilver’s new line, called Fidra, after a rocky island off the coast of Scotland, the country where golf was supposedly born, will be introduced next week at the PGA Merchandise show in Orlando.

Quiksilver’s stock moved up $1.38 a share to $22.94 Tuesday on the New York Stock Exchange.

The move into golfing apparel is the latest expansion for Quiksilver, a Huntington Beach company that, after years of catering to boys and young men, now also makes clothes and accessories for older men, girls, women and toddlers.

The company is entering an arena that’s become increasingly crowded in recent years.

“It’s another competitor in a very competitive market,” said Steven Richter, an analyst with Tucker Anthony Capital Market.

Established brands such as Nike Inc. and Polo Ralph Lauren Corp. have expanded into golf apparel and new companies have sprung up to sell untraditional golf clothes to younger golfers who warmed to the sport after Tiger Woods and other young pros made golf seem cooler and less staid.

With surfers and skateboarders increasingly interested in golf, Quiksilver started selling its khaki Bermuda-style shorts and golf shirts in some golf shops in 1998.

According to Ashworth, Quiksilver considered buying the golf wear company about five years ago. Then late in 1996, Randall Herrel Sr., who had been Quiksilver’s president and chief operating officer, jumped ship and became Ashworth’s chief executive.

Ashworth, 41, said he left the company in 1997 because of “philosophical differences” with management. At the time, he agreed not to compete against his former company for three years, an agreement that expired in June.

After spending time with Chief Executive Robert B. McKnight Jr. and other Quiksilver executives recently, Ashworth decided to plunge back into the golf apparel business.

“The way they think about surfing is the way I think about golf,” he said Tuesday.

Ashworth Inc. officials could not be reached to comment.

Both the Ashworth and Quiksilver brands have proven themselves with their core customers--the die-hard surfer or golfer.

While Quiksilver built its reputation in surf shops, Ashworth planted its roots in country club pro shops, an arena that Quiksilver will now be trying to invade. Although Ashworth’s reputation and connections will help, it won’t necessarily be easy, analysts say.

“Frankly, the golf market is kind of a good-old-boy network,” said Brett Hendrickson, an analyst with B. Riley & Co.. “The guys who they’re selling to will, many times, be wearing an Ashworth shirt.”

“I think it’s an uphill battle to get into this market for anybody,” he added, “even someone with the resources and expertise that Quiksilver has.”

But Quiksilver, the world’s largest surf wear maker, has been resourceful about moving into new markets while holding tight to its core customer.

Last year, the company bought Hawk Clothing of San Clemente, a skateboard apparel company founded by skate champ Tony Hawk, and launched “Alex Goes,” a women’s apparel line targeting “soccer moms” and other active young women. Quiksilver also makes snowboards and snow boots.

Some analysts were enthusiastic about the new venture.

“We are excited about the golf line and we will be going to the PGA to see it,” said Jennifer Black, an analyst with Wells Fargo Van Kasper, which has a strong buy rating on Quiksilver. “It’s something new. It’s something different.”

While the new division is not expected to make a major difference in Quiksilver’s revenues initially, the golf line could be an important part of its business in coming years, analysts said.