Quiksilver Slips To Loss On Lower Sales, Tax Expense; Stock Tanks - Update

(RTTNews) - Apparel and footwear retailer Quiksilver Inc. (ZQK), Thursday reported a slip to loss in the fourth quarter, hurt mostly by weak sales across the U.S. and EMEA regions, and a hefty tax allowance.

Results for the quarter came in short of Wall Street estimates, dragging Quiksilver shares down 8 percent in after-hours trade on the New York Stock Exchange.

Faced with sagging sales, Quiksilver has been shutting down under-performing retail stores, pruning its global athlete roster and selling non-core assets.

Huntington Beach, California-based Quiksilver posted a quarterly net loss of $171 million or $1.04 per share, compared with a net income of $4.4 million or breakeven per share last year.

Results for the quarter included non-cash tax valuation allowance of $157 million related to deferred tax assets in the EMEA segment.

Excluding items, loss from continuing operations for the quarter was $7.3 million or $0.04 per share, compared with income of $8 million or $0.05 per share in the prior year.

On average, 10 analysts polled by Thomson Reuters estimated earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter declined to $476 million from $529 million a year ago, and missed analysts' expectations of $511.85 million.

Americas revenue fell 15 percent from a year ago, and Asia Pacific was down 4 percent. Europe, Middle East and Africa sales dropped 6 percent.

Quiksilver stock closed Thursday at $7.73, up $0.20 or 2.66%, on a volume of 2 million shares. In after-hours, the stock fell $0.63 or 8.15%, to trade at $7.10.