Quiksilver still down in second quarter

By

Sarah Ahssen

Published
Jun 9, 2015

For its second quarter ended 30 April, Quiksilver's numbers are still down. The board sports group has published sales at 333 million dollars, compared to 397 million for the same period last year, or a 16% drop. A drop that can be partly attributed to the unfavourable exchange rates: at a constant exchange rate the decline in sales stands at 2%.

However, the group's net loss for the period declined, standing at 37.5 million dollars compared to 53 million a year prior.

In the Americas region, its biggest market, Quiksilver's net revenues were $160 million compared with $186 million. A drop notably due to a change in strategy of distribution channels. EMEA (Europe, Middle East, Africa) net revenues were $116 million compared with $151 million. And APAC (Asia-Pacific) net revenues were $56 million compared with $60 million.

Net revenues from emerging markets were $45 million compared with $51 million.

Gross margin decreased to 47.1% from 48.9%. The 180 basis point decline in gross margin reflects higher discounting and freight expenses due to late deliveries, and unfavorable currency exchange rates, mainly in Europe, partially offset by the favorable impact of a higher percentage of sales mix in direct to consumer channels.

In terms of brands, Quiksilver net revenues were $139 million compared with $167 million; Roxy net revenues were $105 million compared with $120 million; and DC net revenues were $81 million compared with $103 million.

For its distribution channels, wholesale net revenues were $230 million compared with $286 million, retail net revenues were $84 million compared with $90 million, and e-commerce net revenues were $16 million compared with $19 million.

Finally, apparel and accessories net revenues as reported, were $232 million compared with $283 million, and footwear net revenues were $101 million compared with $114 million.

For the first six months of its 2014/2015 financial year, Quiksilver has recorded 673 million dollars in revenue, down 14%. The group has chosen not to make any forecasts for the full year and has even withdrawn its previous forecasts, a 1 to 6% growth in revenue. This follows quarterly results that were not as good as expected explain certain analysts.