Quiksilver Loses $16 Million In Q1

by The Editors on March 15, 2011

Quik Logo10Last week we were going to write up the latest financials from Quiksilver’s first quarter, however, we lagged and now it looks like Jeff Harbaugh has done it for us. He says:

For the three months ended January 31, 2011, Quik reported a loss of $16.3 million compared to a loss of $5.4 million during the same quarter the prior year. Sales fell 1.45% from $432.7 million to $426.5 million. Sales in Asia/Pacific were essentially the same from one quarter to the other and rose $6.8 million in the Americas. But European sales fell 7.1% from $177.8 million to $165.2 million.

CEO Bob McKnight appears to be happy about the company’s recent performance according to the conference call transcript posted on Seeking Alpha.

I’m very pleased to report solid first quarter results that were in all aspects better than we expected when the quarter began. Revenues of $426 million in the first quarter exceeded our plan, and were up in constant currency when compared to the first quarter of 2010. This marks the first time in the last nine quarters that we’ve grown revenues and constant currency and demonstrates that previous revenue declines are abating.

Guess the best way to feel good about losing $16.3 million is to plan on losing much more. For Mr. Harbaugh’s analysis on these numbers (including thoughts on Quik’s aggressive DC growth strategy) click the link.

[Link: Market Watch]

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