Boston, MA 06/06/2014 (wallstreetpr) – Quiksilver, Inc. (NYSE:ZQK) reported poor second quarter results. The company posted a loss of 15 cents a share as compared to the analysts’ estimates of 2 cents loss a share. The revenue showed a sharp decline of 11%. The revenue came at $408 million much lower than the analyst’s expectations of $448.8 million. As a result, shares plunged the most since its initial public offering in 1986. The company also forecasted of poor sales for the rest of the year.
The declining sales
Quiksilver, Inc. (NYSE:ZQK) is not having a good time in the North America and Europe. The sales are declining, and it expects the lower sales in the rest of the fiscal year, ending in October. The sales are affected by the severe competition led by the peers and the other independent boutiques and online retailers. The major weakness is seen in the core brands. They are unable to attract the trendy customers. The main issue is of maintaining authenticity. The products have to be set right to fetch the buyers in a competitive industry. The stock saw downgrade from Stifel Financial Corp and the other research firms.
The poor forecast
Quiksilver, Inc. (NYSE:ZQK) shares are having a tough year. In a matter of few months, the stocks have dropped more by more than 61%. The worsening situation of Quiksilver was very much obvious before the results. The company is unable to plan the strategies to stabilize the falling business. More than 20% of the company’s smaller wholesale accounts in the US have closed. The retail sales came flat but were better than the wholesale business. The stock declined by 41% after the results. The company should find ways to reduce the costs. The need is to consolidate the vendors and realign he product line. It will help Quiksilver, Inc. (NYSE:ZQK) to focus on the more selling brands in the U.S. markets.
