US: Quiksilver swings to Q4 loss, sales slide
- Q4 net loss of US$171.1m
- Gross margin widens to 47% of sales
- Net revenues fall 9%
Quiksilver said it had made “solid progress” on key elements of its turnaround plan
US surfwear brand Quiksilver has swung to a fourth-quarter loss and booked a drop in revenues as it continues with its profit improvement plan.
For the three months to the end of October, the company reported a net loss of US$171.1m. This compared to earnings of $4.4m a year earlier.
Excluding restructuring-related charges, asset write-downs and other items, the adjusted loss from continuing operations was four cents per share five cents per share in the year ago period.
Gross margin increased to 47% of sales compared with 45.6% last year. This was down to gross margin improvement in the EMEA region, partially offset by a modest decline to gross margin in the APAC region.
Net revenues were $476m compared with $529m, down 9% on the prior year. Sales were down in each of the group's regions.
Earlier this year, the company unveiled a multi-year plan to try to return to profit by focusing on its three core brands - Quiksilver, Roxy and DC - globalising key functions and reducing costs.
CEO Andy Mooney said Quiksilver had made "solid progress" on key elements of the plan over the last few months.
"During the fourth quarter, we continued right-sizing our global operations, closing under-performing retail stores, trimming our global athlete roster, divesting non-core operations and making important headway in establishing global controls in the supply chain management processes."
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