Wall Street’s enthusiasm for a turnaround at Huntington Beach-based Quiksilver Inc. faded Thursday as the company forecast a loss for the three months through January and lower-than-expected profits for the 12 months through next October.
Quiksilver’s shares, which were up about 6% for the week through Wednesday, fell nearly 8% Thursday and another 8% or so in afterhours trading.
The maker of clothes inspired by surfing and skateboarding has a market value of about $1.3 billion.
For the current quarter through January, Quiksilver said it expects a “small loss.” Analysts on average had been expecting a profit of $11.7 million.
The company expects quarterly sales of $600 million, in line with expectations. A year earlier, Quiksilver had sales of $552 million.
For the 12 months through October, the company forecast a profit of $91 million, versus the $109 million analysts on average were expecting.
The company blamed the lowered outlook on a “challenging winter equipment market,” shorthand for its slumping business selling skis and other snow gear acquired in 2005’s buy of France’s Skis Rossignol SA.
The business could get back to normal by next year’s ski season, according to Quiksilver. But the company still is looking at options for Rossignol, including a sale of the skis business. Quiksilver could keep the Rossignol name for clothes.
On Tuesday, Quiksilver completed its sale of golf club maker Roger Cleveland Golf Co. to Japanese sporting goods retailer SRI Sports Ltd. for $132.5 million. The company had acquired the business as part of Rossignol.
Quiksilver’s forecast came as part of its results for the three months ended Oct. 31.
The company said it had a net loss of $110.9 million, versus a profit of $65.3 million a year earlier. Sales were up 6% to $779.2 million.
