Quiksilver sees sales suffer in Europe

By

Sarah Ahssen

Published
Dec 17, 2012

For the financial year 2012, ended 31 October, the Quiksilver group reported a 3% increase in revenue 1.5 billion euros and growth of 7% in constant currency. "We are pleased, despite economic headwinds in certain markets, especially Europe and Australia, that revenues for fiscal 2012 increased across all three regions, all three major brands and all three distribution channels, in constant currency," said Chief Executive Robert B. McKnight, Jr.

Results in Europe, however, are less positive. Over the year, sales in Europe declined by 7% to 543 million euros and translate to a 1% growth when converted to constant currency. Before the exchange, North America reported an 8% increase in net sales to 757 million euros. Asia-Pacific saw an increase of 13% to 235 million euros.

In terms of the group’s brands, Quiksilver contributed 606 million euros worth of sales, which represents a 3% increase on last year, while Roxy and DC reported 400 million euros and 453 million euros respectively. E-commerce leaped 155% to 66 million euros and wholesale activity earned the group 1.14 billion euros net, meaning an increase of 3% on last year. Net loss was reduced by 10 million euros and operational profit rose from 31 million to 42 million euros.

The latter end of the financial year did not prove to be as prosperous for the company in Europe. For the final quarter, ending 31 October, the group’s operational profit fell 40% to 10.6 million euros. The fall can be partly attributed to the 5% decrease in Quiksilver brand sales across Europe and also to the group’s overall 9% decline in sales on the continent. Thought the groups global revenue was on the up, increasing by 3% to 427 million euros, net revenue for the fourth quarter fell by 94% to 3 million euros.