While setting up new concept shops all over Europe and eyeing a stock market introduction at some future stage, a highly profitable Rip Curl Europe is taking over the distribution in Switzerland and in the Scandinavian countries. Its sales in Switzerland will be run by Hervé Wagneur, brand manager with the former Swiss distributor, Sport Concept, which also handles Millet, Wild Roses and other brands. The Spring/Summer 2008 collection will be the first one to be invoiced directly from Rip Curl Europe in France, and a showroom in Lausanne will be added to the existing one in Zurich.

Rip Curl’s agents in Sweden, Jonas Scohneman and Daniel Nielsen, who were doing an excellent job with the brand in the country, are now running a new subsidiary that will also take care of the Danish, Finnish and Norwegian markets, in tune with the growing regionalization of the Nordic sporting goods market (described in our Northern European market research report). Rip Curl is a leader in the Swedish surfwear market with annual sales of about €2.5 million, compared with about €3 million for the whole territory.

Rip Curl has accelerated the opening of corporate and franchised shops in Europe, following a 9 percent sales increase on a same-store basis during the past year for the units owned by the company. The number of single-brand shops is set to rise from nearly 50 to 60 this year and to 80 in 2008. One-third of the total will continue to be company-owned. One-half of the stores are located in France, but four new stores will open in September in Spain, which is the second largest European market for the brand after France.

With orders up by 15 percent for the upcoming Fall/Winter season, Rip Curl Europe is forecasting revenues of €125 million for the financial year ending in June 2008. Sales grew by 12 percent to €112 million in the year just finished, with stronger growth in surfwear and accessories than in snowboard clothing. Its girls division enjoyed a sales increase of 20 percent, and it is now headed up by Raquel Perez, formerly with Rip Curl España.

Geographically, sales increased by more than 20 percent in Spain, Portugal and Italy, and by more than 30 percent in the Benelux countries, in Scandinavia and in Eastern Europe. The UK was flat, while Germany and Austria went up by 9 percent.