Quiksilver Inc. on Thursday reported fourth-quarter and full-year losses, due in part to conservative buying by retailers and sluggish traffic at the firm’s company-owned stores.
This story first appeared in the December 18, 2009 issue of WWD. Subscribe Today.
The loss for the three months ended Oct. 31 widened to $1.8 million, or 1 cent a diluted share, from $955,000, or 1 cent, in the same year-ago quarter. The loss from continuing operations was $15.7 million, or 12 cents a diluted share, compared with $13.8 million, or 11 cents, last year, excluding results of the Rossignol winter sports and golf equipment businesses as they were reported as discontinued operations. The Huntington Beach, Calif.-based firm sold the Rossignol ski business and Roger Cleveland Golf Co. in 2008. Revenues declined 11.2 percent to $538.7 million from $606.9 million.
For the year, the loss narrowed to $192 million, or $1.51 a diluted share, from $226.3 million, or $1.75, in the same year-ago period. Revenues fell 12.7 percent to $1.98 billion from $2.26 billion.
Robert B. McKnight Jr., chairman, president and chief executive officer, said, “Our fourth quarter was very challenging, as retailers bought conservatively for the holiday season and traffic in our own retail stores remained sluggish through October. In that context, we were pleased that our results were somewhat better than we expected.”
The company said based on current trends, first-quarter revenues are expected to be down 7 percent from the same year-ago period. Quiksilver also said it expects a first-quarter loss per share of between 12 cents and 15 cents.