Huntington Beach-based Quiksilver Inc., which has been slumping on Wall Street, delivered more bad news for investors on Tuesday, warning that it sees a wider-than-expected loss for the three months through Jan. 31.
Quiksilver, which makes clothes inspired by surfing and skateboarding as well as skis and other snow gear, said it expects a loss of $11 million to $15 million for the current quarter, up from an earlier forecast of a “small loss.”
The quarter is “proving to be more difficult than anticipated,” Chief Executive Bob McKnight said.
Quiksilver blamed the retail slowdown over the holidays and ongoing issues at its Rossignol ski business. Stores are blowing out Rossignol skis and other gear and delaying reorders, the company said.
The trends could prompt Quiksilver to update its outlook for the 12 months through October when it reports quarterly results in March, the company said.
Quiksilver, which is under pressure from Wall Street to sell struggling Rossignol, said it has hired JPMorgan Chase & Co. in a review “of alternatives with respect to its other equipment businesses, including possible sales.”
The company’s shares fell more than 10% in afterhours trading on a market value of about $930 million.
For more on Wall Street’s take on Quiksilver, see the Jan. 14 issue of the Business Journal.
