Standard&Poor's Ratings Services' ratings on global lifestyle apparel marketer and designer Quiksilver Inc. reflect the company's exposure to the inherent cyclicality of the apparel industry and tough retail conditions, relatively narrow niche focus, the fashion risk inherent in its target market, high leverage, and our concerns that it may not be able to comply with the covenants in the European facilities. Huntington Beach, Calif.-based Quiksilver designs and markets young men's and women's casual surf lifestyle apparel and related product categories. The company's 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 emphasize authenticity
