Quiksilver reports Q1 loss
For its first quarter ending on January 31, Quiksilver saw its operating losses decline compared to the same period last year going from 4 to 1.3 million dollars. The group saw its sales fall by nearly 14% over the period (4% before exchange rate) to 340.8 million dollars.
But, by reducing costs, including employee compensation, rent and distribution expenses, the surf brands group improved its operating margin.
It nevertheless recorded a net loss of nearly 10.8 million dollars. However, the group announced a positive Ebitda of 10.1 million dollars.
In terms of sales by region, the Americas saw an 8% drop on constant currency and 16% final at 147.8 million dollars.
The Europe Middle East Africa region posted -3% at constant currency and -16% final at 125.8 million and the Asia-Pacific region saw an increase of 4%, weighed down (-5%) by currency rate fluctuations at 66.6 million dollars.
Over the course of the quarter, the numbers for the group’s three leading brands were down. Quiksilver generated 140.8 million dollars, down 14% (-3% before exchange rates), Roxy posted 100.3 million dollars at -15% (-6%) and DC recorded -13% (-4%) at 89.1 million. Its other business brought in 10.6 million dollars.
Overall, its wholesale business suffered the most, falling by 19% (-9% before currency fluctuations) at 140.8 million dollars. Retail saw a decline of 9% (stable before the effect of exchange rates) at 119.1 million, while e-commerce jumped by 14% (+20%) to 26.7 million dollars. Licenses generated 2.7 million, up 24% (+3%).
It is worth noting that while its apparel and accessories segment, with 251.5 million dollars, recorded an 18% decline (-7%), its footwear segment recorded a 1% increase (+8%) at 89.4 million.
For 2015 as a whole, the group expects its net revenues to grow by between 1% to 6% at between 1.38 and 1.45 billion dollars. It expects its annual Ebitda, meanwhile, to be between 70 and 80 million dollars.
$1 = £0.68
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