Shares of Quiksilver Inc. pulled back 2.7 percent in early after-hours trading Thursday following the company’s unexpected adjusted loss and disappointing revenue results for the fourth quarter.
The net loss totaled $171.1 million, or $1.02 a diluted share, against net income of $4.4 million, or 3 cents, in the year-ago quarter. Stripping out restructuring charges, a tax valuation allowance and results for discontinued operations, such as the Mervin snowboard subsidiary sold earlier this month, the adjusted loss came to 4 cents a share against expectations among analysts, on average, of a 4 cent profit.
Revenues for the three months ended Oct. 31 contracted 10 percent to $475.9 million, against expectations of revenue of $511.9 million and year-ago sales of $529.2 million.
“While net revenues were lower due to the expected decrease in DC brand sales, we generated higher gross margin and drove down selling, general and administrative expenses,” said Andy Mooney, president and chief executive officer.
Gross margin in the quarter rose to 47 percent of sales from 45.6 percent in the final quarter of 2012. Selling, general and administrative expenses fell 3.1 percent to $220.4 million.
The company’s profit improvement initiatives include the thinning of its brand portfolio. It plans to exit its Surfdome, Hawk, Moskova and licensed Maui and Sons businesses to focus on its three core brands — Quiksilver, Roxy and DC Shoes.
For the full year, Quiksilver said revenues for its Quiksilver and Roxy brands were flat at constant currency at $190 million and $137 million, respectively, while down 25 percent at DC to $139 million.
The net loss for the year, including discontinued operations, came to $232.6 million, or $1.39 a diluted share, versus a loss of $10.8 million, or 7 cents, a year ago. Revenues slid 6.8 percent to $1.81 billion from $1.94 billion.
Shares fell 21 cents, or 2.7 percent, to $7.52 following the after-market disclosure of results. They ended the regular trading session earlier up 20 cents, or 2.7 percent, at $7.73.