The ratings on global lifestyle apparel marketer and designer Quiksilver Inc. reflect its exposure to the inherent cyclicality and fashion risk of the apparel industry and the challenging retail environment, its relatively narrow niche focus, the fashion risk inherent in its target market, and high leverage. The ratings also incorporate Quiksilver's diverse geographic distribution channels, and its portfolio of well-recognized lifestyle brands with a loyal following. Huntington Beach, Calif.-based Quiksilver designs and markets young men's and women's casual surf lifestyle apparel and related product categories. Its main apparel brands are Quiksilver, Roxy, and DC Shoes. Quiksilver has built its niche business in young men's and women's surfboard- and skateboard-riding-related apparel and accessories from the grassroots level. The global lifestyle brands
