Orange County Business Journal

Quiksilver Slumps on Q4 Earnings

Kari Hamanaka Friday, December 14, 2012

Shares of Huntington Beach-based Quiksilver Inc., a day after the company reported disappointing fourth-quarter results.

The action sports apparel maker and retailer’s shares were off about 15% to a market value of $575 million in midday trading Friday.

Quiksilver reported net income of $4 million for the quarter ended Oct. 31. That’s down from $68 million in the year-ago period.

Excluding charges, the company’s fourth-quarter income was $13 million.

Analysts on average expected a profit of $17.8 million.

Quiksilver’s fourth-quarter revenue was $559 million, up 3% from a year earlier.

That missed consensus estimates of $563.9 million for the fourth quarter.

Of the company’s three core brands, Roxy and DC Shoes saw revenues rise during the quarter. DC Shoes led the growth with an 18% increase in revenue to $187 million.

Meantime, the company's namesake Quiksilver brand saw revenue fall 5% to $200 million for the quarter.

The quarterly results followed the company’s full-year report, which saw revenue for the 12-month period ending in October rise 3% to $2.01 billion.

Quiksilver reported a full-year net loss of $11 million, narrowed from $21 million in the year-ago period.

“We are pleased, despite economic headwinds in certain markets, especially Europe and Australia, that revenues for fiscal 2012 increased across all three regions, all three major brands and all three distribution channels, in constant currency,” said Chief Executive Bob McKnight.

McKnight went on to say that Quiksilver will continue to focus on “strengthening our brands, increasing global sales and driving operational efficiencies.”

The company did not provide guidance for the quarter ending in January.

Analysts expect revenue of $461.9 million and a loss of $10.7 million for the current quarter.