Not good news over at Quiksilver. The parent company to Quiksilver, DC and Roxy reported a net loss swelling to $53.1 million, or 27 cents a share, in the second quarter from $32.4 million, or 20 cents, in part due to an increase in asset impairments and a 9% revenue decline. Sales were down 16% on a currency-neutral basis in the Americas. The company also said it expects pro-forma adjusted EBITDA for the full year to come in below year-ago levels.
“Focusing on the Americas wholesale channel, Quiksilver brand revenues decreased by 9%, Roxy brand decreased 14%, and DC decreased 35%. We feel our initial pricing has been too high for the last few seasons. This is resulted in poor sell through, high markdowns and returns, a significant reduction from initial gross margin to final gross margin and lower wholesale pre-bookings for subsequent seasons. We believe that by being more competitive with initial pricing that sell in and sell through will improve along with subsequent reductions and markdowns in returns. We believe this change will support improved wholesale channel performance and we anticipate being able to hold our final gross margins.”— Richard Shields, Chief financial Officer.