(RTTNews) - Quiksilver Inc.
(ZQK), an outdoor sports lifestyle company, on Thursday reported a net loss for the first quarter of fiscal 2008, compared to profit last year, hurt by due to both softer than expected reorders for wintersports equipment and a challenging global retail environment.
The Huntington Beach, California-based company posted a net loss of $21.9 million or $0.18 per share, compared to net income of $2.5 million or $0.02 per share in the prior year quarter. On average, thirteen analysts polled by First Call/Thomson Financial expected a loss of $0.10 per share for the first quarter.
Loss from continuing operations for the first quarter was $14.7 million or $0.12 per share, compared to income of $6.8 million or $0.05 per share in the year-ago quarter.
Consolidated revenue from continuing operations for the first quarter increased 14% to $605.3 million from $528.7 million in the same quarter last year. Eleven analysts had consensus revenue estimate of $560.92 million for the first quarter.
The company's global apparel revenues rose 19% to $500.5 million from $421.5 million in the previous year quarter, helped by the positive effects of foreign currency rates.
Consolidated inventories increased 11% to $490.2 million at January 31, 2008 from $442.8 million at January 31, 2007. Consolidated trade accounts receivable rose 13% to $638.7 million at January 31, 2008 from $566.1 million at January 31, 2007.
Owing to continuing weakness in consumer spending, Quiksilver said it is taking incremental action to reduce expenses and discretionary capital spending, in order to maximize free cash flow and reduce debt levels.
Robert McKnight Jr., Chairman of the board, Chief Executive Officer and President of Quiksilver, said, 'As we go forward, we are energized to regain focus on our core opportunities. We are executing a variety of strategies to improve our gross margin, reduce our expense levels and generate cash flow to repay our indebtedness. We are resolved to continue to pursue strategic transactions to reduce or eliminate our exposure to our wintersports equipment business.'
In January, the company said it is reviewing alternatives with respect to its other equipment businesses, including possible sales. The company has hired JPMorgan to assist in the process. In December, the company sold Cleveland Golf to Japan's SRI Sports Ltd., in a transaction valued at $132.5 million.
ZQK closed Thursday's regular trading session at $8.06, down 93 cents or 10.34%. In the after-hours, the shares gained 15 cents or 1.86%.
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