Late deliveries add to Quiksilver’s woes
12/09/2014
Net revenues of $396 million were down 19%, or $96 million, in constant currency for the three months to the end of July. The bright spot was e-commerce revenues, which grew 10% to $35 million.
“We continued to execute against the key initiatives laid out in our profit improvement plan and to drive growth in our direct-to-consumer channels and emerging markets,” said Andy Mooney, Quciksilver’s CEO.
“As we expected, revenues for the third quarter declined in our wholesale channels in North America and Europe. In addition, late product deliveries, largely the result of our transition to global demand planning, negatively impacted our sales performance and gross margin.
“We are resolving the product delivery issues and already see improved fulfilment in the holiday season. We continued to right-size staffing, redeployed our marketing to invest more in media and point of sale, improved the quality of distribution in North America and completed a number of licensing transactions for peripheral product categories. We are encouraged by the positive feedback we have received on our spring 2015 product lines, both for apparel and footwear.”
Share this story:
