Apparel and footwear maker Quiksilver Inc. (ZQK), Thursday reported a wider loss for the first quarter, as revenues declined reflecting closing of under-performing stores and weak sales in Americas. Loss for the quarter was wider than what analysts' expected and revenue growth also missed expectations. Following the news, shares of the company slipped ten percent in extended trade.
Quiksilver's revenues for the first quarter dropped 4 percent to $431.0 million from $449.6 million last year. Ten analysts polled by Thomson Reuters estimated revenues of $465.00 million for the period. On a constant currency basis, the revenue drop was 3 percent.
Chief Executive Andy Mooney said, "Net revenues in the first quarter were impacted by the closure of underperforming retail stores over the last year, as well as disappointing performances in our wholesale channel and in the Americas region."
Revenues from Americas decreased 9 percent to $186 million, while EMEA increased 1 percent to $171 million. APAC revenues decreased 2 percent to $73 million.
Gross margin for the quarter improved to 51 percent from 50.7 percent last year, driven mainly by a revenue mix shift toward more profitable segments and distribution channels.
Huntington Beach, California-based Quiksilver's first-quarter loss widened to $31.1 million or $0.19 per share from $22.6 million or $0.14 per share last year.
Excluding charges and impairments, loss for the quarter was $0.16 per share compared to $0.12 per share last year. Analysts expected loss of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
ZQK closed Thursday's trading at $6.29, up $0.06 or 0.96%, on a volume of 1.5 million shares, on the NYSE. In after-hours trade, the stock shed $0.55 or 8.74%.
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