Shares of Huntington Beach-based Quiksilver Inc. fell 4.4% Friday after the surfwear maker lowered its outlook for the current quarter.
The company cut its expectations for the quarter based on what it called “improved visibility” on recently acquired Skis Rossignol SA and “a challenging environment” in Asia.
Quiksilver said it could see profit of $7.6 million, down sharply from an earlier view of $21.6 million.
Sales could come in at $525 million to $530 million, down 2% from an earlier forecast, the company said.
The good news, according to Quiksilver: It could sees stronger sales and profits in the next two quarters than previously forecast.
Quiksilver, the leading maker of surf-inspired clothes, met Wall Street’s profit expectations for the quarter ended Jan. 31.
Net income for the Jan. 31 quarter rose 31% from a year earlier to $18.6 million. That’s what analysts were expecting, after subtracting $4.1 million in stock compensation expense in the quarter.
Sales rose 58% to $541.1 million.
The results are the second full quarter with Rossignol in the fold. Quiksilver bought France’s Rossignol in July for about $320 million.
Wall Street has been cautious about the deal. Rossignol was losing money and market share before the acquisition.
Sales from Rossignol and its Cleveland Golf unit in Huntington Beach were $192 million during the quarter, or 35% of sales.
