Quiksilver Gets Hammered Following Earnings Release
Shares of Quiksilver (NYSE: ZQK) have taken a heavy hit following worse-than-expected second-quarter results.
After closing Monday's intraday session at $5.79, Quiksilver shares are down over 44 percent to $3.21 at the time of publication.
The retailer had its revenue fall to $408.2 million, representing a decrease of nearly 10 percent year-over-year. This also missed the average analyst estimate of $448.6 million.
Below are the revenue figures from specific brands:
• Quiksilver decreased $13 million, or seven percent, to $167 million.
• Roxy decreased $7 million, or six percent, to $121 million.
• DC decreased $24 million, or 19 percent, to $103 million.
Additionally, net loss from continuing operations jumped to $46.0 million, or $0.27 per share, from $33.0 million a year earlier.
“We made progress on our Profit Improvement Plan,” said Andy Mooney, President and CEO of Quiksilver. “During the second quarter, we again reduced our expense structure, increased sales in our direct to consumer channels and emerging markets, and drove improvements in gross margins. These improvements were offset by decreased net revenues in our wholesale channel, especially in the developed markets in North America and Europe. Consequently, pro-forma adjusted EBITDA decreased versus the prior year.”
The company stated that it is expecting some continued year-over-year gross margin improvements in the second half of fiscal 2014.
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