Quicksilver reports decline in Q2 revenues

Net revenues, at Quicksilver were 333 million dollars compared with 397 million dollars in the second quarter of 2015. Net revenues were down 2 percent, or 5 million dollars, on a constant currency continuing category basis. Net revenues in Americas, as reported, were 160 million dollars compared with 186 million dollars, down 4 percent or 6 million dollars, on a constant currency continuing category basis.

“Our second quarter performance came in largely as expected with revenues adjusted for currencies and licensed categories essentially stabilized. We also reduced operating expenses, which allowed the Company to meet its EBITDA goal for the quarter on a constant currency basis. Currency exchange fluctuations are a major headwind this year, with a negative impact of roughly thirty million dollars to the initial EBITDA guidance for fiscal 2015.”

EMEA net revenues, as reported, were 116 million dollars compared with 151 million dollars, a decline of 3 percent or 4 million dollars, on a constant currency continuing category basis. APAC net revenues were 56 million dollars compared with 60 million dollars, up 7 percent or 4 million dollars, on a constant currency continuing category basis. Net revenues from emerging markets were 45 million dollars compared with 51 million dollars. Net revenues from emerging markets were up 10 percent or 4 million dollars, on a constant currency continuing category basis.

Gross margin decreased to 47.1 percent from 48.9 percent. The 180 basis point decline in gross margin reflects higher discounting and freight expenses due to late deliveries, and unfavorable currency exchange rates, mainly in Europe, partially offset by the favorable impact of a higher percentage of sales mix in direct to consumer channels.