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Quiksilver: Potential Sale of Rossignol In Process

Huntington Beach-based Quiksilver Inc. said Thursday that the maker of surf-inspired clothes has begun a process to sell its struggling Rossignol unit.

Quiksilver made the announcement along with its earnings for the three months ended April 30.

The company reported a net loss of $206.2 million for the quarter, driven by a $240.2 million charge related to Rossignol.

Excluding Rossignol, Quiksilver made $38.7 million in the quarter.

The company now accounts for Rossignol, a maker of skis and other winter sports gear, as a “discontinued operation.”

Quiksilver didn’t offer details on who is in the process of buying Rossignol or when a deal might close.

The company appears set to sell Rossignol for much less than the $560 million it paid for the business in 2005.

The $240 million charge stemmed from a writedown in the value of Rossignol “triggered by the sale process.”

Rossignol has been a drag on the company’s profits and stock since it was acquired.

Revenue for the quarter, excluding Rossignol, rose 15% from a year earlier to $596.3 million. But the sale figure fell short of analysts’ expectations of $605.4 million.

The company’s main clothing business has held up relatively well in a tough time for retailers. But Quiksilver was cautious in saying its outlook for revenue and profits “remains limited” for this and next quarter.

Quiksilver said its revenue from continuing operations could grow about 10% for the 12 months through October to about $2.67 billion, on par with analyst expectations.

Last year, the company reported revenue of $2.43 billion.

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