Quiksilver Shares Slump on Q1 LossFriday, March 9, 2012
Shares of Huntington Beach-based Quiksilver Inc. were down about 7% in midday New York trading a day after the surfwear company reported a higher-than-expected loss for the recently ended quarter.
Quiksilver had a recent market value of $690 million.
Quiksilver reported an adjusted loss of $20.7 million for the three months through January.
Wall Street analysts expected a loss of $16.1 million.
The quarterly loss ends a three-quarter streak of profits for Quiksilver, which makes action sports-inspired clothes, shoes and accessories under multiple brands.
Revenue for the January quarter was up 5% from the year-earlier period to $449.6 million.
Analysts had expected $437.4 million in revenue.
Results for the January quarter were in line with the company’s expectations, according to Chief Executive Bob McKnight.
“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,” McKnight said in a statement.
The company said during a conference call with analysts that its DC Shoes brand is expected to have the highest percentage growth this year out of its three core brands, which include Quiksilver and Roxy.
That growth isn't expected to materialize until the second half of the year, when the back-to-school shopping season is expected to give a lift.
Quiksilver did not provide guidance for the current quarter.
Analysts on average expect Quiksilver to report an $8.1 million profit on revenue of $490.9 million for the April quarter.
This is the first year of Quiksilver’s five-year plan to grow annual revenue 50% to $3 billion. The company aims to double earnings before interest, taxes, depreciation and amortization to $400 million by 2017.