Quiksilver stock (ZQK) has crashed disastrously after a poor earnings report and a rough outlook for the company.
ZQK stock is down 43% in early morning trading.
The retailer faced declines in all its brands and regional markets — with a 9% drop in sales to $408.2 million.
Wall Street, meanwhile, expected revenues of $448.6 million.
Via BidnesEtc:
Quiksilver, which is struggling to optimize its supply chain and control expenses, reported increased losses in the quarter. The losses came to $53 million for the quarter following an impairment charge of $25 million, recorded in relation to a goodwill write-down of Quicksilver’s Surfdome business. Excluding one-time charges, losses came in at $46 million (27 cents a share), compared to the $33 million (12 cents a share) recorded in last year’s comparable quarter. On average, the 11 analysts surveyed by Bloomberg were expecting a loss of only 2 cents a share.
…The company’s strategy is to focus on re-pricing and to introduce a more fashionable product mix to revive its brands. It recorded the sharpest decline in DC Shoes sales (19%), which contributes a quarter of its revenues. Sales of Quiksilver and Roxy-branded items declined 7% and 6%, respectively, in the period.
One bright spot: online sales.
E-commerce sales were up 23% to $30 million, or 7.4% of total quarterly revenues.
ZQK stock is down 62% year to date.
