Quiksilver profits still down

By

Sarah Ahssen

Published
Dec 12, 2014

In its fourth quarter ended October 31, Quiksilver reduced its losses, which now stand at $49 million, or 29 cents a share, from a loss of $175 million, or $1.04 a share, in the year-earlier period. Nevertheless, the American group specialised in board sports, which has chosen to concentrate on its brands Quiksilver, Roxy and DC and which sold its segment of the Surfdome website in November, is not yet in the clear.

Indeed, for its entire financial year, Quiksilver saw its revenue drop 11% to $1.57 billion. There was a particularly significant drop in the America zone, where revenue dropped 16% $400.7 million. In the Europe, Middle East and Africa region, it dropped 8% to $584 million. Only the Asia-Pacific region saw a slight growth, 1% to $262 million.

Moreover, for its financial year the group has recorded a net loss of $326 million compared to $239 million for the same period last year.

In terms of its brands, Quiksilver's revenue dropped 10% to $628 million, Roxy's sales were down 4% to $479 million, and DC dove 19% to $426 million.

In the retail network, which represents two thirds of the group's activity, sales were down 16% to $1.04 billion, but there is some good news from the retail and e-commerce side. Indeed, retail sales saw a tiny 1% increase to $444 and a more significant 12% for online sales to $77 million.

Quiksilver said it anticipates full fiscal year 2015 net revenue to be in the range of $1.48 billion to $1.55 billion.