Quiksilver (ZQK) Off 37 Percent After Earnings Miss
Shares of Quiksilver Inc. (ZQK) were trading down -2.16 or -37.31 percent to $3.63 per share in pre-market trading on Tuesday, after the company announced financial results for its second fiscal quarter ended April 30th. Quiksilver released earnings after the close showing a wider than expected loss, driving the stock down -27 percent on more than 1.2 million shares in yesterdayâ s aftermarket.
Quiksilver stock closed down -0.15 or -2.53 percent to $5.79 per share in Mondayâ s regular trading session.
Huntington Beach, California based Quiksilver Inc. was founded in Torquay, Australia in 1969 and is one of the worldâ s largest manufacturers of surf and board sport related equipment and accessories. The company develops and markets its branded footwear, apparel and other accessories under the Quiksilver logo based on The Great Wave of Kanagawa woodcut by Japanese painter Hokusai. Quiksilver also makes a line for women under the Roxy brand name and another line under the DC brand. Quiksilver reported a net pro-forma loss from continuing operations, excluding special charges and other items related to restructuring of -$25 million, or -$0.15 per share, compared with a loss of -$0.12 in the same period one year ago. Analysts were expecting the company to report a loss of -$0.02 per share. Revenue also missed the mark, coming in at +$408.21 million, versus +$456 million last year. Analysts expected revenue of +$449 million. E-commerce revenue increased +23 percent to $30 million, while emerging markets revenue grew +28 percent, excluding the impact of currency translation. Nevertheless, gross margins increased to 48.7 percent from 45.9 percent, which showed improvement in direct sales to consumers, reduced clearances and benefits from licensing agreements. Andy Mooney, President and Chief Executive Officer of Quiksilver, Inc. stated in a press release that, â
Published on Jun 3, 2014
By Jay Hawk