Quiksilver in trouble after weak second quarter

Quiksilver in trouble after weak second quarter

Quiksilver is going through a rough patch, as its three brands (Quiksilver, Roxy and DC) all had sales drops, its wholesale turnover took a turn for the worse, while its own stores remained level. E-commerce was the only positive mention for the company.

Every brand suffers

The California-based fashion company Quiksilver has seen better days, with a second quarter (until 30 April) it would prefer to forget. Its net loss went up to 46 million dollars (33.8 million euro), considerably more than the 33 million dollars loss in the same quarter last year. Its total turnover also dropped from 456 million to 408 million dollars (nearly 300 million euro).

 

The Quiksilver brand saw sales decline 7 % to 167 million dollars (122.69 million euro), while Roxy lost 6 % and dropped to 121 million dollars (88.9 million euro). The biggest drop, 19 %, is for the smallest brand, DC. It managed a 103 million dollar (75.67 million euro) turnover. The company is slipping worldwide, with a 18 % drop in America, - 2 % in EMEA and - 6 % in Asia Pacific.

 

E-commerce manages to grow

Its web shop is the only bright spot in its line-up this past quarter as it managed a 23 % sales increase, even though it only brings in 30 million dollars (22.04 million euro) at the moment. That is a minor business compared to its wholesale branch, which dropped 15 %, and the 90 million its own retail branch, which remained stable, managed. It has even managed to expand its retail business, with 28 stores, to 658 stores.

 

Management expects "that the general sales trends of recent quarters compared to the same prior year period will continue into the second half of fiscal 2014 with continued net revenue declines in the North America and Europe wholesale channels being partially offset by net revenue growth in emerging markets and e-commerce", the company said in a press release.

 

The forecast is not exactly looking good for the company and investors have also reacted badly to the numbers, with the share dropping over 30 %.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top