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Quiksilver Plummets 41.6% in Modestly Down Market

U.S. retail stocks dip 0.1 percent.

Weak second-quarter results hit Quiksilver Inc. hard today, pushing its stock down 41.1 percent to $3.41 in a modestly down market.

Late Monday, the company offered a disappointing report on the quarter, revealing a  larger-than-expected loss on lower-than-expected revenues. That led to downgrades from both Stifel Nicolaus and Monness Crespi and left the stock at with its lowest close since Nov. 2, 2012.

Two other southern California firms, both retailers which have recently reported difficult quarters, saw their stocks lose significant ground as well. The Wet Seal Inc. shares were off 4.2 percent to 85 cents and Pacific Sunwear of California Inc. surrendered 3.8 percent to close at $2.28.

Overall, retail stocks were down modestly. The S&P 500 Retailing Industry Group slipped 0.1 percent to 876.07 after dipping less than 0.1 percent on Monday. However, the International Council of Shopping Centers-Goldman Sachs retail sales index had some good news for merchants. According to the index, sales for the week ended Saturday rose 3.1 percent on a year-on-year basis — the second-strongest increase of the last 12 months.

In the broader market, the Dow Jones Industrial Average lost 0.1 percent, closing at 16,722.34, while the S&P 500 came closest to the breakeven point, slipping less than 0.1 percent to 1,924.24. The declines for the Dow and the S&P ended a three-session winning streak.

Among fashion, retail and beauty firms whose stocks are monitored by WWD, the largest increase came from G-III Apparel Group Ltd., up 8.7 percent to $82.54, after it reported first-quarter profits far in excess of consensus estimates. Express Inc. shares were up 3.8 percent to $13.51 while Tumi Holdings Inc.’s stock rose 1.9 percent to $18.52.

European markets were down at the close of trading, with Milan’s FTSE MIB off the most with a 0.6 percent decline to 21,656.65.

The FTSE 100 in London retreated 0.4 percent to 6,836.30, while the CAC 40 in Paris and the DAX in Frankfurt were both down 0.3 percent, to 4,503.69 and 9,919.74, respectively.

Retail and luxury stocks were mostly down, with the day’s biggest declines coming from  Aeffe, off 2.1 percent to 1.16 euros; Brunello Cucinelli, 2.1 percent to 18.40 euros; French Connection Group, 1.5 percent to 68 pence, and Safilo Group, 2.4 percent to 16.67 euros.

Debenhams managed to buck the trend and advanced 1.3 percent to 77 pence.

The euro traded at $1.36 against the U.S. dollar, while the pound fetched $1.67 and the Swiss franc equaled $1.11.