Revenues up just 3% at Quiksilver in Q2 FY'12

08 Jun '12

5 min read

Gross margin in the second quarter was 49.2% of net revenues compared to 54.8% of net revenues in the second quarter of fiscal 2011.

The gross margin contraction was principally driven by higher levels of clearance business, the timing of certain royalties, higher input costs, and the impact of foreign currency exchange rates. The company earned pro-forma Adjusted EBITDA of $39.4 million in the quarter compared to $62.1 million in the second quarter of fiscal 2011, with the decline largely driven by the contraction in gross margin mentioned above.

Q2 Highlights
• Revenues for each of the company's three major brands – Quiksilver, Roxy and DC – grew in the second quarter compared to the same quarter a year ago.

• Second quarter same store sales in company-owned retail stores grew 6% on a global basis and were positive in each region.

• Revenues in the company's Americas and Asia/Pacific regions grew in all three channels of distribution including wholesale, company-owned retail and E-Commerce.

• Quiksilver's strong online sales momentum continued as the company's second quarter E-Commerce revenues again demonstrated solid growth compared to the same quarter a year ago.

• Continuing the company's investment in emerging markets, on May 1st Quiksilver expanded its majority ownership in its Brazilian entity to 80%. The company's business in Brazil continues to demonstrate strong growth and solid profitability while generating annual revenues of greater than $50 million.

• With two events remaining in the 2012 Association of Surfing Professionals season, Quiksilver team rider and brand ambassador Stephanie Gilmore, a four-time World Champion, and Roxy team rider Sally Fitzgibbons, world title runner-up the past two years, are locked in a tight battle for the women's world surfing title after both have won two events during the current campaign. The next event on this year's schedule is the Roxy Pro France in July.

• The Street League Skateboarding DC Pro Tour kicked off its 2012 season at the Sprint Center in Kansas City. 17-year-old phenom Nyjah Huston, the newest addition to the DC skate team, won the event in a dramatic duel with Bastien Salabanzi, the tour's first European qualifier. The next stop on the DC Pro Tour is at the Citizens Business Bank Arena in Ontario, California, June 15-16.

Quiksilver, Inc. is one of the world's leading outdoor sports lifestyle companies. Quiksilver designs, produces and distributes a diversified mix of branded apparel, footwear and accessories.

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