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Since the pivotal fall of Bear Stearnas ayear ago, Quiksilver has seen its sharee drop approximately 90 percent as it struggled to maintain itself during the resultant consumer-spendingb crisis. It abandoned its efforts to bea year-round sportx retailer by selling off Rossignol in November. A purchase Quiksilver made in 2005for $300 million was sold for $30 milliobn in cash and a $10 millionj note. The loss from discontinued operationse hammered its already soft earningsd forfiscal first-quarter, which ended Jan. 31. The company reportes a loss of $194.4 or $1.53 per compared with a smaller lossof $21.9 million, or 17 cents per in the year-earlier period.
Overall sales were down 11 percentyto $443.3 million with salesw in the Americas off 13 percent and Europea n sales affected negatively by the stronger dollar. Analysts followed by Thomson Reuters were expecting a loss of just 10 cent per share on salesof $435.7 The surprise from the huge loss sent analystw back to their worksheets, droppinf estimated fiscal 2009 earnings to 27 centse per share from 41 cents, and 37 centsz per share from 50 cents for fiscaol 2010. Just a few months ago, analysts were estimatin 68 cents per share in 2009 and 75 centsin 2010.
The compant also is somewhat pessimistic, saying that earnings and revenue visibilityremains “limited” due to “weak consumet traffic … and compressed margins.” Facex with a balance sheet showingv about $42 million in cash and $1.012 billion in debt, Quiksilverd is working hard to either refinancs or restructure its debt. This is the main reaso the shares are trading atabout one-third of theier stated book value of $2.86 per share.
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