Rip Curl weathers the Global Financial Crisis
Surfersvillage Global Surf News, 12 March, 2015 - Rip Curl has been valued at $310 million by directors after the board approved a share buyback from former senior executives no longer with the company.
This compares with a $400m price tag placed on the iconic surfwear group two years ago when it was planning a sale, possibly through an initial public offer, which was later abandoned due to tough market conditions that slashed its earnings along with other brands in the retail category, such as arch rivals Quiksilver and Billabong.
Rip Curl director Tony Roberts told The Australian he believed the group had managed to avoid the worst of the global financial crisis and extended downturn in retail conditions because, unlike its bigger rivals, Rip Curl had stuck to its core product lines.
“We are more of a core surf brand than either key competitors. They both grew bigger than us but in growing bigger they stretched into that non-core market more than we have and we have been very true to our roots in terms of our core products,” Mr Roberts said.
“For example, our wetsuits are our champion products and have been since the company was founded; probably that’s one reason why the GFC didn’t hit us as hard as it hit them.’’