The ratings on Huntington Beach, Calif.-based global lifestyle apparel marketer and designer Quiksilver Inc. reflect the company's exposure to the cyclical apparel industry, its soft retail conditions, its relatively narrow niche focus, the fashion risk inherent in its target market, and uncertainty about covenant cushion levels in its European facilities. Quiksilver designs and markets young men's and women's casual surf lifestyle apparel and related products. 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 are marketed with both athlete endorsements and sponsorship of board-riding-related events. Nevertheless, fashion risk in this segment is especially
