Quiksilver, Inc. announced financial results for the fiscal 2014 first quarter ended January 31, 2014.
Fiscal 2014 First Quarter Review:
The following comparisons refer to results of continuing operations for the first quarter of fiscal 2014 versus the first quarter of fiscal 2013.
-Net revenues were $393 million compared with $412 million, and were down 2%, or $9 million, in constant currency.
-Americas net revenues decreased 5% to $173 million from $183 million, and were down 3% in constant currency.
-EMEA net revenues decreased 4% to $149 million from $156 million, and were down 6% in constant currency.
-APAC net revenues decreased 4% to $70 million from $73 million, but were up 11% in constant currency.
-Gross margin was consistent with the first quarter of last year at 50.9%. Modest improvements in gross margins in the Americas and EMEA segments were offset by increased promotional activity in the APAC segment.
-SG&A expense decreased $12 million to $204 million from $216 million, primarily due to reduced employee compensation expenses, including incentive compensation, and reduced athlete and event spending.
-Pro-forma Adjusted EBITDA increased to $16 million from $12 million.
“During the first quarter, we further reduced our expense structure and made progress on optimizing our supply chain and laying the foundation for stabilizing and expanding revenues.”
“We continued to execute our Profit Improvement Plan over the last few months,” said Andy Mooney, President and Chief Executive Officer of Quiksilver, Inc. “During the first quarter, we further reduced our expense structure and made progress on optimizing our supply chain and laying the foundation for stabilizing and expanding revenues.
“Pro-forma adjusted EBITDA improved versus the prior year quarter, continuing the progress made in the final two quarters of last year,” added Mooney. “The key drivers for the improvement were reduced selling, general and administrative expenses, along with higher Roxy brand sales and increased revenues in our direct-to-consumer channels and emerging markets. We were able to report this improvement despite decreased net revenues, which were driven by lower sales in our wholesale channel, especially in the developed markets in North America and Europe.”
As previously announced, the Company sold its Mervin Manufacturing and Hawk businesses, and is pursuing the divestiture of its Surfdome business. As a result, the Company has reclassified the current and prior year operating results of these non-core businesses as discontinued operations. All of the results presented below represent the Company’s continuing operations.