LONDON, April 15, 2015 /PRNewswire/ --
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Investor-Edge.com has issued free post-earnings coverage on Quiksilver Inc. (NYSE: ZQK). On March 17, 2015, the company reported its financial results for Q1 FY15 (period ended January 31, 2015). Click on http://get.Investor-Edge.com/pdf/?c=Quiksilver&d=15-Apr-2015&s=ZQK to read our free earnings review on Quiksilver Inc. (Quiksilver). During Q1 FY15, the company's GAAP net revenues and pro-forma adjusted EBITDA were $340.85 million and $10.10 million, respectively. Chairman and CEO of Quiksilver, Andy Mooney, stated that the company is encouraged by its first quarter performance. Revenues adjusted for currencies and licensed categories essentially stabilized in Q1 FY15, and operating expenses decreased by $20 million versus the prior year in constant currencies, he added. Our free coverage report can be accessed at:
During Q1 FY15, Quiksilver's GAAP net revenues declined $54.06 million, or 14% Y-o-Y, from $394.91 million in Q1 FY14. However, the company's Q1 FY15 GAAP net revenues outperformed Bloomberg analysts' forecast of $337.50 million. Further, Quiksilver's net revenues fell 4%, or by $13.83 million, on a constant currency continuing category basis in Q1 FY15 to $340.38 million Q1 FY14.
In Q1 FY15, Quiksilver's Americas region's GAAP net revenues fell 16% to $147.77 million from $175.46 million in Q1 FY14. EMEA region's GAAP net revenues also declined 16% in Q1 FY15 to $125.81 million from $149.40 million in Q1 FY14. Moreover, APAC region's GAAP net revenues were down 5% to $66.60 million in Q1 FY15 from $69.88 million in Q1 FY14. Free research on ZQK can be downloaded in PDF format at:
For Q1 FY15, Quiksilver brand's GAAP net revenues declined 14% to $140.80 million from $163.85 million in Q1 FY14. The company's Roxy brand's GAAP net revenues were down 15% to $100.30 million in Q1 FY15 from $118.03 million in Q1 FY14. Furthermore, DC brand's GAAP net revenues fell 13% to $89.12 million in Q1 FY15 from $102.99 million in Q1 FY14.
Mr. Mooney said that the customer feedback on the company's Spring '15 product offering, across all brands, has been positive. He informed that order book for the Fall '15 product line continues to develop, and the company is confident in its ability to generate revenue increases going forward.
During Q1 FY15, Quiksilver's pro-forma adjusted EBITDA fell by $6.32 million from $16.45 million in Q1 FY14. The company's Q1 FY15 gross margin decreased to 49.7% from 50.8% in Q1 FY14. Further, net loss from continuing operations attributable to Quiksilver narrowed down to $18.29 million, or $0.11 loss per diluted share, in Q1 FY15 from net loss from continuing operations attributable to Quiksilver of $21.89 million, or $0.13 loss per diluted share, in Q1 FY14. For Q1 FY15, analysts from Bloomberg had expected net loss from continuing operations attributable to Quiksilver of $22.68 million, or $0.14 loss per diluted share. Sign up and read the free analyst's notes on ZQK at:
As of January 31, 2015, Quiksilver's cash and availability on credit facilities was $141 million.
In its outlook for Q2 FY15, Quiksilver expects net revenues to be approximately $340 million; flat as compared to Q2 FY14's net revenues on a constant currency continuing category basis. Further, the company anticipates gross margins to be approximately 48.0% for Q2 FY15 with SG&A expense, excluding any restructuring and special charges, of approximately $175 million and pro-forma adjusted EBITDA of approximately $8 million.
Quiksilver revised its full-year FY15 guidance, driven by changes in currency exchange rates since October 2014, as well as additional cost reduction initiatives. It now expects net revenues to be approximately $1.38 billion to $1.45 billion, an increase of approximately 1% to 6% on a constant currency continuing category basis versus full-year FY14. Further, the company anticipates gross margins to be between 48.5% and 50% for FY15 with SG&A expense, excluding any restructuring and special charges, in the range of $685 million and $700 million and pro-forma adjusted EBITDA of between $70 million and $80 million. Visit Investor-Edge and access the latest research on ZQK at:
On the day following the earnings release, March 18, 2015, Quiksilver's stock rallied 18.82% to end the session at $2.02. Since then, the stock has moved both ways. On the last close, Tuesday, April 14, 2015, the company's shares finished at $1.74, 1.14% below its previous day's closing price of $1.76. The stock vacillated between $1.73 and $1.77 during the session. A total of 0.79 million shares were traded which was below their three months average volume of 1.79 million. The company's shares have gained 6.10% in the last one month. However, over the previous three trading sessions and over the past three months, the company's shares have lost 1.69% and 14.71%, respectively. Shares in Quiksilver closed below their 50-day and 200-day moving averages of $2.02 and $2.27, respectively. Furthermore, the stock has a Relative Strength Index (RSI) of 41.24.
Sneak Peek to Corporate Insider Trading
In the last one month, Quiksilver has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on ZQK is available at:
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