• Q4 net losses narrowed to US$49m
  • Gross margin narrowed to 46.7%
  • Net sales dropped 11%
Quiksilver began a multi-year profit improvement plan in 2013

Quiksilver began a multi-year profit improvement plan in 2013

Surf-led apparel business Quiksilver has booked a mixed set of results with sales falling but losses narrowing in its fourth-quarter thanks to the completion of its restructuring.

Net loss from continuing operations amounted to US$49m in the three months to end October, compared with $175m in the prior year. Last year's figure included a $157m income tax charge related to recording valuation allowances against certain deferred tax assets in the company's EMEA segment.

Gross margin narrowed 30 basis points to 46.7% from 47%, reflecting higher discounting, partially offset by higher sales mix in direct to consumer channels.

Net revenues dropped 11% to $401m from $476m in the year ago period.

In May last year, the company announced a multi-year profit improvement plan, and last month sold its majority stake in online retailer Surfdome to Australian online retailer Surfstitch Group for around $16m in cash.

"We have successfully completed the organisational restructuring of the company, with every employee now singularly focused on execution," said CEO Andy Mooney. "Despite a challenging year, we significantly reduced costs and inventory levels, and are excited about our 2015 product offerings.

"Along with more than $160m of liquidity at year end, we have a strong foundation in place and anticipate revenue stabilisation and significant pro-forma adjusted EBITDA growth in the coming year."