Shares of Quiksilver Inc. got a more than 15 percent after-market boost following the company’s report of a smaller-than-expected first-quarter loss, teamed with higher revenues than expected.
The figures came 12 days later than expected and appeared to put to rest uncertainty about a “revenue cut-off issue” that had caused their postponement.
Originally scheduled to report on March 5, the company on March 4 said it was postponing their disclosure until the company’s audit committee considered the revenue question. The firm said Tuesday that the discrepancy revealed that actual shipment routing and customer delivery information hadn’t been consistently maintained in the company’s enterprise resource planning system in accordance with procedures.
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As a result, revenues that should have been recorded in the first quarter of fiscal 2014 were assigned to the fourth quarter of 2013.
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The discovery of the issue led Quiksilver to add about $2 million to its revenues for the first quarter of last year, raising the figure about 0.6 percent, Richard Shields, chief financial officer, said on the company’s late afternoon conference call.
Quiksilver, which has been restructuring as it’s struggled to effect a turnaround, was able to cite some encouraging developments as it belatedly shared the first-quarter results.
In the three months ended Jan. 31, it recorded a net loss of $10.8 million, or 7 cents a diluted share. While the quarterly figures fell well below the $16.2 million, or 9 cents a share, profit registered in the year-ago period, the adjusted loss per share for the 2015 period was 11 cents, 3 cents better than the 14-cent loss expected, on average, by analysts.
Revenues declined 13.7 percent, to $340.9 million from $394.9 million, but beat the analysts’ consensus estimate of $337.4 million.
Apparel and accessories sales were down 17.9 percent to $251.5 million, and off 7 percent at constant currency, but footwear sales, at $89.4 million, rose 1 percent in reported terms and were up 8 percent at constant currency, with all three brands — Quiksilver, Roxy and the footwear-focused DC — registering growth in the footwear category, according to Andy Mooney, chairman and chief executive officer.
Quiksilver reduced its expectations for full-year adjusted earnings before interest, taxes, depreciation and amortization to a range of between $70 million and $80 million, but Shields noted that the $10 million reduction on both the high and low ranges was a reflection of more recent currency conditions.