• Q1 net loss down 18% to US$18m
  • Net revenues down 13.7% to $341m
  • Exchange rates impact figures

The boss of surf-led apparel business Quiksilver said he was “encouraged” after the company reported an 18% cut to its first quarter net loss.

Revenues suffered a double-digit decline in the three months to 31 January, but were impacted by exchange rates, with constant currency revenues down by just 4%.

At constant currencies, revenues in the Americas fell 8%, while the decline for the EMEA region was 3%, but the APAC region registered a 4% increase.

Gross margin dipped to 49.7% from 50.8% a year ago, thanks to higher discounting, unfavourable exchange rates and higher costs related to the West Coast ports labour dispute – offset by the favourable impact of higher sales mix in direct-to-consumer channels.

By brand, Quiksilver revenues were down 3% at constant exchange rates, while the declines for Roxy and DC were 6% and 4% respectively.

Wholesale revenues fell 9% and retail sales were flat, with same store sales declining by 3% – but e-commerce revenues rose 20%.

“Customer feedback on our spring ’15 product offering, across all brands, has been positive,” said Andy Mooney, chairman and CEO, adding that he was “encouraged” by the first quarter figures.

“Our order book for the Fall ’15 product line continues to develop, and we are confident in our ability to generate revenue increases going forward.”