Quiksilver Growth Exceeded Expectations In The First Quarter

Us extreme sport Brand Company Quiksilver Inc. (NYSE: ZQK) released its expected two quarter earnings yesterday.

In the 2015 fiscal year ended January 31, 2015, Q1's EPS of its continuing business was recorded at -0.11 US dollars, narrowing compared with -0.13 US dollars in the same period last year, and also better than analysts' average expected -0.13 dollars.

News stimulated the company.

After the market rose 7%, and then jumped more or more nearly 20%, the deadline for dispatch was 6:38PM 17.65%. 2 U.S. dollars, or 17.65%.

First quarter

Inc. net loss of $10 million 770 thousand, compared with a profit of $16 million 191 thousand in the same period last year, a net loss of $18 million 290 thousand in the first quarter of this year, narrowed by 21 million 890 thousand US dollars in the same period last year, and the income was $340 million 900 thousand, down 13.7% from 394 million 900 thousand a year earlier, but better than analysts' expectations of $339 million, fixed exchange rate decreased by 4%, and Quiksilver Inc. in the first quarter.

There was a 3% decline; gross margins fell 110 basis points to 49.7%.

Quiksilver Inc. CEO Andy Mooney expressed satisfaction with the group's first quarter performance. He also said that the quarter's operating expenses were reduced by US $2000 and customers responded positively to new products.

Quiksilver Inc. expects revenue in the two quarter of fiscal 2015 to be $340 million, lower than analysts' expectations of $369 million, and the gross profit margin is further down to 48%. The expected annual revenue is 1 billion 380 million US $-14.5 billion, with a 1%-6% growth rate at fixed exchange rate and an annual gross profit margin of 48.5%-50% expected.

On Tuesday, Quiksilver Inc. gained $1.70, or up to 3.66%, but the company's stock price plunged about 80% in recent years as a result of continued business slump, and so far this year has fallen by 26%, while the S & P 500 rose 0.7%.

Related links:

The Irving Place Capital, backed by Dov Charney, the former chairman, President and CEO of American Apparel Inc., acquired the American Apparel Apparel at $1.30-1.40 per share in December last year, which prompted the stock price to rise to a recent high of $1.14.

At the time of the deadline, American Apparel Inc. (NYSE MKT:APP) fell 0.75% to 0.755 dollars on Tuesday afternoon, down 33.8% from its December high.

Bloomberg quoted market sources saying that after several months of negotiations with American Apparel Inc., Irving Place Capital had shaken its valuation and felt that the American Apparel Inc. board preferred to finance the company that redeemed the company's continued losses, rather than seeking sale.

It is reported that more than 10 potential buyers including Irving Place Capital have signed a confidentiality agreement.

Irving Place Capital is a New York based investment fund. It has invested in the US youth apparel retailer A ropostale Inc. (NYSE:ARO) and high-end shoe brand Stuart Weitzman Holdings LLC, which was divestment in 2002 and 2010 respectively. Currently, it owns the share of the apparel retailer, the company's brand and the clothing brand.

New York hedge fund Standard General LP is now the largest single shareholder of American Apparel Inc..

Last June, when Dov Charney was expelled by American Apparel Inc., it increased its shareholding ratio to 42.98% by July Standard General LP, becoming the largest shareholder of the group, but immediately pferred all its shareholdings and voting rights to Standard General LP.

Standard General LP subsequently reorganized the American Apparel Inc. board and removed 5 of the original 7 directors and joined the 4 directors nominated by them to control the board of directors.

It is this board controlled by Standard General LP that made the decision to formally dismiss Dov Charney and appointed Paula Schneider as the new CEO.

Investors close to Standard General LP revealed that the hedge fund wanted to focus on the long-term development of American Apparel Inc. and had no intention to sell it.

And Dov Charney may initiate proceedings against American Apparel Inc. (NYSE MKT:APP), which will make pactions even more complicated.

American Apparel Inc. expanded to a net loss of $19 million 200 thousand in the three quarter ended September 30, 2014, or a loss of $0.11 per share, far exceeding the $0.04 expected by the market. Net loss and share loss were 1 million 500 thousand US dollars and 0.01 US dollars in the same period last year.

Net sales fell 5.3% to $155 million 900 thousand, or less than the market forecast of $162 million 400 thousand, the highest since the fourth quarter of 2010.

At the end of the three quarter, American Apparel Inc. had a net cash of $9 million 400 thousand, a decrease of $800 thousand over the two quarter.

Next month, the company needs to repay a bond interest of more than 13 million dollars, and the company may get the $15 million unsecured loan promised by Standard General LP before that.