Quiksilver Down 8% After Missing Earnings Estimates

Shares of Quiksilver

are down 8% after the company missed earnings estimates. The company announced operating results for the first fiscal quarter ended January 31, 2012. Revenues grew 5% to $449.6 million as compared to $426.5 million in the first quarter of fiscal 2011 and grew 6% in constant currency. The company earned pro-forma Adjusted EBITDA of $19.5 million in the quarter compared to $28.2 million in the first quarter of fiscal 2011. The net loss was $22.6 million, or $0.14 per share, while the pro-forma loss, which excludes $1.9 million of net after-tax severance charges, was $20.7 million or $0.13 per share. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables. Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “We're very pleased with our solid first quarter results. Our top line growth was driven by continued strong retail performance with positive comparable store sales in all three regions. We've known for some time that the first half of fiscal 2012 would present some challenges to our business given the higher sourcing costs we began to encounter in the second half of 2011. But despite these pressures, demand for our products remains strong in both established and emerging markets. We're also making good progress on the long-term growth initiatives in which we've invested. In addition, we've identified significant opportunities for cost reductions through further globalization of our operations. All things considered, we remain well positioned to deliver both revenue growth and profit expansion in fiscal 2012, the first year of our 5-year plan to increase annual revenues by 50% to $3 billion and to double our annual EBITDA to $400 million.”