Shares of Quiksilver Inc. dropped about 27% to $2.06 and market value of about $350 million in midday trading Thursday after the retailer posted a big loss and a steep drop in revenue for the quarter ended July 31.
The Huntington Beach-based apparel manufacturer and retailer reported a $220 million net loss for the period, while its sales fell 19% to $396 million. That compared with a $2.1 million profit for the same period last year.
Its loss totaled $35 million before $185 million in “asset impairments” and other one-time charges.
Analysts had expected $440.6 in revenue and $5.1 million in profits.
Quiksilver’s revenue decline was mostly due to its wholesale distribution, which fell 30% to $235 million.
Sales at the company’s own stores rose 1% to $123 million. Same-store sales in company-owned retail stores also improved 1%, and its e-commerce revenues grew 10% to $35 million.
The number of company-owned retail stores totaled 658 at the end of the third quarter, compared with 632 it had a year earlier.
The overall dip in sales came across the company’s core brands. Revenue for the Quiksilver division decreased $30 million, or 17%, to $143 million. Roxy’s sales decreased $12 million, or 9%, to $119 million. DC Shoes was down $57 million, or 34%, to $109 million.
Quiksilver didn’t offer a projection for the current quarter.
“We are resolving the product delivery issues and already see improved fulfillment in the holiday season,” said Andy Mooney, company’s president and chief executive. “We continued to right-size staffing, redeployed our marketing to invest more in media and point of sale, improved the quality of distribution in North America and completed a number of licensing transactions for peripheral product categories.”
