Quiksilver Revoked 2015 Annual Performance Expectations

In March of this year, Quiksilver Inc. announced the replacement of chief executive and chief financial officer. Just over two years after taking office, Andy Mooney was fired and replaced by Pierre Agnes, who has served the company for 27 years and was promoted to the president of the company in November last year. The position of president has fallen on the shoulders of Greg Healy, President of the former Asia region. Meanwhile, Bob McKnight, co-founder of Quiksilver Inc. who was replaced by Andy Mooney in January 2013, returned to the company as chairman. In addition, the former chief financial officer, Richard Shields, also left office. The group did not provide a significant restructuring of management.

Quiksilver Inc. (NYSE: ZQK) withdrew its performance expectations for the current fiscal year 2015 on the US stock market on Tuesday, plus the two quarter loss was more serious than the market expectations, and the stock price plunged 39.5%.

In the two quarter earnings report, Quiksilver Inc. CEO Pierre Agnes pointed out that sales and gross margins of the North American local market this year will be impacted by implementation delays such as delay in delivery and distribution channel strategy. Therefore, the group's expectations for a substantial improvement in North American profit in the second half of the year will not be realized. He said the group still had confidence in the above expectations, but the time would be postponed. In addition, Pierre Agnes anticipate unfavorable exchange rate fluctuations will also affect annual performance.

At the end of April, the group had cut its full year forecast for the first quarter. At that time, because of the strength of the US dollar, the group expected annual revenue from 14.8-15.5 billion US dollars to 13.8-14.5 billion, and the gross profit margin was expected to be lowered from 49.5%-51.0% to 48.5%-50.0%.

In the two quarter of fiscal 2015 ending April 30, 2015, although Quiksilver Inc. continued Business operation The net loss narrowed to $37 million 594 thousand from $53 million 124 thousand in the same period last year, but it has not been profitable for the 7 consecutive quarter, and the $0.22 loss per share maintained at the same period last year is much higher than the $0.14 expected by the market.

Two quarter revenue fell 16.1% to $333 million 100 thousand, less than Market expectations The US $341 million was 396 million 900 thousand US dollars in the same period last year, and the fixed exchange rate decreased by 2%. Same store sales decreased by 3% per annualized year. In fixed exchange rates, Quiksilver brands and DC brands recorded a decline of 1% and 9% respectively, while Roxy growth increased by 1%.

Gross freight rates fell by 180 basis points to 47.1% from 48.9% in the same period last year due to higher discount rates and delayed deliveries due to port activities in the West Bank.

Weakness in performance Quiksilver The management of Inc. is also very turbulent. At the beginning of this month, Elizabeth Dolan, chief marketing officer of Fox International Channels Fawkes international television network, announced the resignation of the Quiksilver Inc. director because the board of directors of Quiksilver Inc. did not allow her to attend important meetings and voting on replacing chief executive and chief financial officer at the beginning of this year because she had friendly relations with the former chief executive officer Andy Mooney of the group being fired.

At the time of the deadline, Quiksilver Inc. (NYSE: ZQK) fell 38.2% to 0.763 dollars in the afternoon, which had fallen 81% in the past 12 months, and only 130 million dollars in the market value.