Smashed overnight. Slater got out in just in time perhaps - hope he cashed in some stock on exit
Shares in iconic Australian surf brand Quiksilver fell a whopping 41 per cent overnight on Tuesday, as Wall Street reacted savagely to a dismal earnings report.
At last trade on the New York Stock Exchange on Tuesday the share price was $US3.41, a loss of $US2.38 or 41.11 per cent. On Monday the 45-year-old company released its second quarter earnings report, for the three months to April 30, reporting a 9 per cent drop in net revenue and a net loss of $US42 million.
Its biggest loss was felt in the American market, where net revenues decreased 18 per cent, followed by Australia-Pacific with a loss of 6 per cent. Quiksilver chief executive Andy Mooney said in a statement that improvements in direct sales to consumers and reduction in expense structures were offset by "decreased net revenues in our wholesale channel, especially in development markets in North America and Europe".
"Consequently, pro-forma adjusted EBITDA decreased versus the prior year," he said.
Across its brands, shoe line DC lost $US24 million ($25.9 million), followed by its eponymous Quiksilver menswear line ($US13 million) and womenswear Roxy lost $US7 million.
The brand's origins lie in Torquay, home of Victoria's world famous surf beach, Bells Beach.
It was started in 1969 by local surfers Alan Green and John Law, who started making boardshorts in their garage.
In 1990 it launched its women's brand, Roxy, named after Green's daughter, with a range of swimwear.
It is now one of the world's largest sports lifestyle companies, with a variety of products including apparel, footwear, winter sports and golf equipment and accessories.
In 1976, the brand was licenced to the US states, creating Quiksilver USA. It was first listed on the New York Stock Exchange in 1986 and later merged with Quiksilver Europe in 1990. Its headquarters are now located in Huntington Beach, California.
