Online sales drop 30% in the Americas in Q2 for Quiksilver
June 9, 2015 04:03 PM
Quiksilver Inc.’s online sales declined during the outdoor apparel and accessories retailer’s fiscal second quarter. The retailer, No. 702 in the Internet Retailer 2015 Second 500 Guide, reported online sales of $16 million for the quarter, down 15.8% year-over-year from $19 million during the same period last year. Overall sales for the retailer fell to $333.05 million, down 16.1% year-over-year from $396.94 million during the same period last year.
The retailer’s online revenue declined 30% in the Americas region, “due to the decision to limit the discounts on our websites, chief financial officer Thomas Chambolle told analysts on the retailer’s earnings call with analysts.
“In North America, we have intentionally been less promotional in our online product offering to better support our core wholesale business,” he told analysts, according to a transcript of the call obtained from Seeking Alpha.
The retailer changed top executives during the quarter, with company veteran Pierre Agnes replacing Andy Mooney as CEO in March. Agnes told analysts one of his primary goals is turning around the retailer’s fortunes in the Americas.
“I want to emphasize that the new team's view is that we strongly believe that we can turn the North Americas market around into a profitable business in the next fiscal year,” he said. “We have a very strong brand, and are applying the successful business practices of the EMEA and APAC regions to the North American market.”
For the three months ended April 30, Quiksilver reported:
- Net revenues in the Americas region of $160 million, down 14.0% from $186 million during the same period last year.
- Retail net revenues of $84 million, down 6.7% from $90 million.
- Gross profit of $156.8 million, down 19.3% from $194.3 million.
For the six months ended April 30, Quiksilver reported:
- Net revenues of $673.91 million, down 14.9% from $791.85 million.
- Gross profit of $326.24 million, down 17.4% from $394.93 million.