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Published
Mar 15, 2011
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Quiksilver starts the year off slowly

Published
Mar 15, 2011

For Quiksilver, the fall of over 28% seen in its first quarter EBITDA results (fiscal 2011 beginning on November 1st), compared against the same period in 2010, is to do with investments on a series of new businesses. In fact, the EBITDA went from 28 to 20 million euros (39 to 28 million dollars), with Quiksilver also experiencing a fall in the operating profit, which fell from 13.6 to 9 million euros.

The American group, which carries brands such as Quiksilver, Roxy, DC, Lib Tech and Hawk in its portfolio, registered a 1.6% decrease in its Q1 sales turnover, going down to 308 million euros. However, it also saw a growth of nearly 4% in the American market during this period.

Exchange rates had a big impact on results in the Europe and Asia-Pacific regions. At a constant exchange rate, Quiksilver Europe rose by 1% to 119 million euros, while Asia-Pacific went down 8% to 48 million. “As we had mentioned before, now that our financial restructuring is completed, we are looking for ways of investing in our brands and working on their long-term growth potential”, explains Robert B. McKnight Jr., president of the executive board. For 2011, Quiksilver’s directors are counting on a slight increase in sales.

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