UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 9, 2015
Quiksilver, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 001-14229 | 33-0199426 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
15202 Graham Street, Huntington Beach, CA | 92649 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code:
(714) 889-2200
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On June 9, 2015, Quiksilver, Inc. issued a press release announcing its financial results for the three and six months ended April 30, 2015. The press release is attached hereto as Exhibit 99.1.
In addition to Quiksilvers GAAP financial information, the press release furnished with this report as Exhibit 99.1 reports adjusted EBITDA, pro forma adjusted EBITDA, and constant currency continuing category measures, all of which are considered non-GAAP financial measures. Quiksilver believes these non-GAAP financial measures are useful to investors as they provide consistency and comparability with its past financial reports, as well as useful information to enable investors to perform additional analyses of past, present and future operating performance and as a supplemental means to evaluate Quiksilvers operations. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP or other pro forma measures used by other companies.
The information in this Form 8-K and Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of Securities Exchange Act of 1934, as amended (the Exchange Act) or otherwise subject to the liability of that section, and, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is being furnished herewith:
Exhibit |
Exhibit Title or Description | |
99.1 | Press Release dated June 9, 2015, issued by Quiksilver, Inc. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: June 9, 2015 | Quiksilver, Inc. | |||||
(Registrant) | ||||||
By: | /s/ Thomas Chambolle | |||||
Thomas Chambolle | ||||||
Chief Financial Officer |
3
INDEX TO EXHIBITS
Exhibit |
Exhibit Title or Description | |
99.1 | Press Release, dated June 9, 2015, issued by Quiksilver, Inc. |
4
Exhibit 99.1
Quiksilver Announces Fiscal 2015 Second Quarter Financial Results
Company Provides Updated Outlook for Fiscal 2015
Huntington Beach, California, June 9, 2015Quiksilver, Inc. (NYSE:ZQK; the Company) today announced financial results for its fiscal 2015 second quarter ended April 30, 2015.
Pierre Agnes, Chief Executive Officer, stated, 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. We are encouraged by customer feedback on our Spring 15 product offering across all brands. In addition, as our order book for the Fall 15 product line continues to develop, we are confident in our ability to drive revenue growth in the medium term. Overall, we are quite happy with our product lines.
Mr. Agnes continued, 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. Also, we are still working on execution issues that are going to impact our business in the second half of this year, particularly in North America where sales and margins are affected by poor deliveries and an evolving distribution channel strategy. The Company had expected significant profit improvement in North America in the back half of the year when it provided guidance for fiscal 2015. We are still confident this improvement can be achieved, but not in that time period. We have a number of important steps underway that we believe will take our Company forward, including recommitting to our roots while at the same time enabling us to execute our business more effectively. We have reorganized the Company and have a tremendously talented team in place that is focused on delivering significant and sustainable EBITDA growth in 2016 and the following years.
Please refer to the accompanying tables for a reconciliation of GAAP results from continuing operations to certain non-GAAP results from continuing operations, including pro-forma adjusted EBITDA; a definition of the Companys emerging markets; and changes in net revenue on a constant currency continuing category basis, which adjusts prior period net revenues for changes in currency exchange rates and excludes prior period wholesale net revenues for product categories now licensed to third parties, as well as removes current period licensing net revenues for the same licensed product categories, in order to provide comparability of net revenues between periods.
Second Quarter Review:
The following comparisons refer to results of continuing operations for the second quarter of fiscal 2015 versus the second quarter of fiscal 2014.
Net revenues, as reported, were $333 million compared with $397 million. Net revenues were down 2%, or $5 million, on a constant currency continuing category basis.
| Americas net revenues, as reported, were $160 million compared with $186 million. Americas net revenues were down 4%, or $6 million, on a constant currency continuing category basis. |
Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 2 of 8
| EMEA net revenues, as reported, were $116 million compared with $151 million. EMEA net revenues were down 3%, or $4 million, on a constant currency continuing category basis. |
| APAC net revenues, as reported, were $56 million compared with $60 million. APAC net revenues were up 7%, or $4 million, on a constant currency continuing category basis. |
Net revenues from emerging markets, as reported, were $45 million compared with $51 million. Net revenues from emerging markets were up 10%, or $4 million, on a constant currency continuing category basis.
Gross margin decreased to 47.1% from 48.9%. 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.
SG&A expense decreased $33 million to $175 million from $208 million. The decrease was primarily driven by currency exchange rates, reduced bad debt and employee compensation expenses.
Pro-forma Adjusted EBITDA was $7 million compared with $13 million.
Net loss from continuing operations attributable to Quiksilver, Inc. was $38 million, or $0.22 per share, in the second quarter of each of fiscal 2015 and 2014.
Cash and availability on credit facilities at the end of the quarter was $118 million.
Q2 Net Revenue Highlights:
Net revenues from continuing operations by brand, sales channel and product group for the second quarter of fiscal 2015 compared with the second quarter of fiscal 2014 were as follows.
Brands:
| Quiksilver net revenues, as reported, were $139 million compared with $167 million. Quiksilver net revenues were down 1%, or $1 million, on a constant currency continuing category basis; |
| Roxy net revenues, as reported, were $105 million compared with $120 million. Roxy net revenues were up 1%, or $1 million, on a constant currency continuing category basis; |
| DC net revenues, as reported, were $81 million compared with $103 million. DC net revenues were down 9%, or $8 million, on a constant currency continuing category basis. |
Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 3 of 8
Distribution channels:
| Wholesale net revenues, as reported, were $230 million compared with $286 million. Wholesale net revenues were down 4%, or $9 million, on a constant currency continuing category basis; |
| Retail net revenues, as reported, were $84 million compared with $90 million. Retail net revenues were up 6% on a constant currency continuing category basis. Same-store sales in company-owned retail stores decreased 3%. Company-owned retail stores totaled 719 at the end of the fiscal 2015 second quarter compared with 658 at the end of the fiscal 2014 second quarter; |
| E-commerce net revenues, as reported, were $16 million compared with $19 million. E-commerce net revenues were down 6%, or $1 million, on a constant currency continuing category basis. |
Product groups:
| Apparel and accessories net revenues, as reported, were $232 million compared with $283 million. Apparel and accessories net revenues were down 2%, or $5 million, on a constant currency continuing category basis; |
| Footwear net revenues were $101 million compared with $114 million. Footwear net revenues were flat on a constant currency continuing category basis. |
Outlook:
Based on managements current assessment of the business, the Company is rescinding its previously stated financial guidance for the fiscal year 2015. The Company may choose to reinstate the policy of providing forward guidance in the future, but will not be providing an outlook for fiscal 2015 at this time.
About Quiksilver:
Quiksilver, Inc., one of the worlds leading outdoor sports lifestyle companies, designs, produces and distributes branded apparel, footwear and accessories. The Companys apparel and footwear brands, inspired by a passion for outdoor action sports, represent a casual lifestyle for young-minded people who connect with its boardriding culture and heritage. The Companys Quiksilver, Roxy, and DC brands have authentic roots and heritage in surf, snow and skate. The Companys products are sold in more than 100 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders shops and other company-owned retail stores, other specialty stores, select department stores and through various e-commerce channels. The Companys corporate headquarters are in Huntington Beach, California.
Forward-looking statements:
This press release contains forward-looking statements including, but not limited to, statements regarding managements expectations for the Companys net revenues, and EBITDA in future periods. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. The Company undertakes no obligation to update these statements, which are made only as of the date of this press release. For the factors that could cause actual results to differ materially from expectations, please refer to the Companys SEC filings and specifically the sections titled Risk Factors, Managements Discussion and Analysis of Financial Condition and Results of Operations and Forward-Looking Statements in the Companys Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
* * * * *
Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 4 of 8
NOTE: For further information about Quiksilver, Inc., please visit our website at www.quiksilverinc.com. We also invite you to explore our brand sites, www.quiksilver.com, www.roxy.com and www.dcshoes.com.
Contact:
Investors:
Jean Fontana
ICR, Inc.
646-277-1214
zqk@quiksilver.com
Media:
Julia Young
ICR, Inc.
646-277-1280
Julia.young@icrinc.com
FINANCIAL TABLES FOLLOW
Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 5 of 8
QUIKSILVER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Second quarter ended | First half ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
In thousands, except per share amounts | ||||||||||||||||
Revenues, net |
$ | 333,052 | $ | 396,941 | $ | 673,906 | $ | 791,851 | ||||||||
Cost of goods sold |
176,254 | 202,651 | 347,664 | 396,921 | ||||||||||||
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Gross profit |
156,798 | 194,290 | 326,242 | 394,930 | ||||||||||||
Selling, general and administrative expense |
175,179 | 207,921 | 345,683 | 411,705 | ||||||||||||
Asset impairments |
703 | 4,583 | 958 | 5,466 | ||||||||||||
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Operating loss |
(19,084 | ) | (18,214 | ) | (20,399 | ) | (22,241 | ) | ||||||||
Interest expense |
18,040 | 19,222 | 36,442 | 38,642 | ||||||||||||
Foreign currency (gain)/loss |
(3,258 | ) | 887 | (2,601 | ) | 3,715 | ||||||||||
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Loss before provision/(benefit) for income taxes |
(33,866 | ) | (38,323 | ) | (54,240 | ) | (64,598 | ) | ||||||||
Provision/(Benefit) for income taxes |
3,728 | (443 | ) | 1,644 | (4,828 | ) | ||||||||||
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Loss from continuing operations |
(37,594 | ) | (37,880 | ) | (55,884 | ) | (59,770 | ) | ||||||||
(Loss)/income from discontinued operations, net of tax |
| (22,981 | ) | 6,732 | 14,636 | |||||||||||
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Net loss |
(37,594 | ) | (60,861 | ) | (49,152 | ) | (45,134 | ) | ||||||||
Less: net loss/(income) attributable to non-controlling interest |
| 7,737 | 788 | 8,201 | ||||||||||||
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Net loss attributable to Quiksilver, Inc. |
$ | (37,594 | ) | $ | (53,124 | ) | $ | (48,364 | ) | $ | (36,933 | ) | ||||
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Loss per share from continuing operations attributable to Quiksilver, Inc.: |
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Basic |
$ | (0.22 | ) | $ | (0.22 | ) | $ | (0.33 | ) | $ | (0.35 | ) | ||||
Diluted |
$ | (0.22 | ) | $ | (0.22 | ) | $ | (0.33 | ) | $ | (0.35 | ) | ||||
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc.: |
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Basic |
$ | | $ | (0.09 | ) | $ | 0.04 | $ | 0.13 | |||||||
Diluted |
$ | | $ | (0.09 | ) | $ | 0.04 | $ | 0.13 | |||||||
Weighted average common shares outstanding: |
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Basic |
171,343 | 170,475 | 171,188 | 170,105 | ||||||||||||
Diluted |
171,343 | 170,475 | 171,188 | 170,105 | ||||||||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||||||||||
Loss from continuing operations |
$ | (37,594 | ) | $ | (37,880 | ) | $ | (55,884 | ) | $ | (59,409 | ) | ||||
(Loss)/income from discontinued operations, net of tax |
| (15,244 | ) | 7,520 | 22,476 | |||||||||||
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Net loss |
$ | (37,594 | ) | $ | (53,124 | ) | $ | (48,364 | ) | $ | (36,933 | ) | ||||
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Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 6 of 8
QUIKSILVER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
April 30, 2015 | October 31, 2014 | |||||||
In thousands | ||||||||
ASSETS |
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Current Assets |
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Cash and cash equivalents |
$ | 48,078 | $ | 46,664 | ||||
Restricted cash |
4,449 | 4,687 | ||||||
Trade accounts receivable (net of allowance of $52,940 and $63,991, respectively) |
251,947 | 311,014 | ||||||
Other receivables |
42,800 | 40,847 | ||||||
Income taxes receivable |
494 | | ||||||
Inventories |
291,248 | 284,517 | ||||||
Deferred income taxes |
4,838 | 4,926 | ||||||
Prepaid expenses and other current assets |
30,425 | 28,080 | ||||||
Current assets held for sale |
| 20,265 | ||||||
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Total Current Assets |
674,279 | 741,000 | ||||||
Restricted cash |
2,868 | 16,514 | ||||||
Fixed assets, net |
189,673 | 213,768 | ||||||
Intangible assets, net |
138,038 | 135,510 | ||||||
Goodwill |
80,102 | 80,622 | ||||||
Other assets |
39,450 | 47,086 | ||||||
Deferred income taxes - long-term |
14,182 | 16,088 | ||||||
Non-current assets held for sale |
| 5,394 | ||||||
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TOTAL ASSETS |
$ | 1,138,592 | $ | 1,255,982 | ||||
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LIABILITIES AND EQUITY/(DEFICIT) |
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Current Liabilities |
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Lines of credit |
$ | 33,037 | $ | 32,929 | ||||
Accounts payable |
149,968 | 168,307 | ||||||
Accrued liabilities |
105,446 | 112,701 | ||||||
Current portion of long-term debt |
2,248 | 2,432 | ||||||
Income taxes payable |
| 1,124 | ||||||
Deferred income taxes |
19,167 | 19,628 | ||||||
Liabilities related to assets held for sale |
| 13,266 | ||||||
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Total Current Liabilities |
309,866 | 350,387 | ||||||
Long-term debt, net of current portion |
785,482 | 793,229 | ||||||
Other long-term liabilities |
35,747 | 39,342 | ||||||
Deferred income taxes - long-term |
22,130 | 16,790 | ||||||
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Total Liabilities |
1,153,225 | 1,199,748 | ||||||
Equity/(Deficit) |
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Common stock |
1,743 | 1,741 | ||||||
Additional paid-in capital |
591,656 | 589,032 | ||||||
Treasury stock |
(6,778 | ) | (6,778 | ) | ||||
Accumulated deficit |
(635,771 | ) | (587,407 | ) | ||||
Accumulated other comprehensive income |
34,517 | 57,288 | ||||||
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Total Quiksilver, Inc. Stockholders Equity/(Deficit) |
(14,633 | ) | 53,876 | |||||
Non-controlling interest |
| 2,358 | ||||||
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Total Equity/(Deficit) |
(14,633 | ) | 56,234 | |||||
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TOTAL LIABILITIES AND EQUITY/(DEFICIT) |
$ | 1,138,592 | $ | 1,255,982 | ||||
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Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 7 of 8
QUIKSILVER, INC. AND SUBSIDIARIES
ADJUSTED EBITDA & PRO-FORMA ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
Second quarter ended | First half ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
In thousands | ||||||||||||||||
Loss from continuing operations attributable to Quiksilver, Inc. |
$ | (37,594 | ) | $ | (37,880 | ) | $ | (55,884 | ) | $ | (59,409 | ) | ||||
Provision/(benefit) for income taxes |
3,728 | (443 | ) | 1,644 | (4,828 | ) | ||||||||||
Interest expense |
18,040 | 19,222 | 36,442 | 38,642 | ||||||||||||
Depreciation and amortization |
9,701 | 14,273 | 20,452 | 24,818 | ||||||||||||
Non-cash stock-based compensation expense |
483 | 6,525 | 2,252 | 11,588 | ||||||||||||
Non-cash asset impairments, net |
703 | 4,583 | 958 | 5,466 | ||||||||||||
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Adjusted EBITDA |
(4,939 | ) | 6,280 | 5,864 | 16,277 | |||||||||||
Restructuring and other special charges |
11,648 | 6,382 | 10,948 | 12,830 | ||||||||||||
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Pro-forma Adjusted EBITDA |
6,709 | 12,662 | 16,812 | 29,107 |
Definition of Adjusted EBITDA and Pro-forma Adjusted EBITDA:
Adjusted EBITDA is defined as net loss from continuing operations attributable to Quiksilver, Inc. before (i) interest expense, (ii) (benefit)/provision for income taxes, (iii) depreciation and amortization, (iv) non-cash stock-based compensation expense and (v) non-cash asset impairments. Pro-forma Adjusted EBITDA is defined as Adjusted EBITDA excluding restructuring and other special charges (including, but not limited to, reserves and other charges associated with restructuring activities, non-operating charges for gains and losses on lease exit activities, as well as severance and other employee termination costs as a result of downsizing and reorganization). Adjusted EBITDA and Pro-forma Adjusted EBITDA are not defined under generally accepted accounting principles (GAAP), and may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA and Pro-forma Adjusted EBITDA, along with other GAAP measures, as measures of profitability because Adjusted EBITDA and Pro-forma Adjusted EBITDA compare our performance on a consistent basis by removing from our operating results the impact of our capital structure, the effect of operating in different tax jurisdictions, the impact of our asset base, which can differ depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments, the effect of non-cash stock-based compensation expense and restructuring and other special charges. We believe EBITDA is useful to investors as it is a widely used measure of performance and the adjustments we make to EBITDA provide further clarity on our profitability. We remove the effect of non-cash stock-based compensation from our earnings which can vary based on share price, share price volatility and the expected life of the equity instruments we grant. In addition, this stock-based compensation expense does not result in cash payments by us. We remove the effect of asset impairments from Adjusted EBITDA for the same reason that we remove depreciation and amortization as it is part of the non-cash impact of our asset base. We also remove from Pro-forma Adjusted EBITDA the impact of certain reserves and charges associated with restructuring activities, non-operating charges for gains and losses on lease exit activities, as well as severance and other employee termination costs as these costs are not typically part of normal, day-to-day operations. Adjusted EBITDA and Pro-forma Adjusted EBITDA have limitations as profitability measures in that they do not include the interest expense on our debts, our provisions for income taxes, the effect of our expenditures for capital assets and certain intangible assets, the effect of non-cash stock-based compensation expense, the effect of asset impairments and the effect of restructuring and other special charges.
Definition of Emerging Markets:
The Companys references to emerging markets in this press release refer to net revenues generated in Brazil, Mexico, Korea, China, Indonesia, Taiwan and Russia, collectively.
Quiksilver, Inc. Reports Fiscal 2015 Second Quarter Financial Results
June 9, 2015
Page 8 of 8
CONSTANT CURRENCY CONTINUING CATEGORY NET REVENUE RECONCILIATION
We make reference to net revenues on a constant currency continuing category basis in order to provide additional comparable information with regard to changes in net revenues. Constant currency continuing category reporting provides valuable comparisons of net revenues as it adjusts for the effect of changes in foreign currency exchange rates and for the impact on our wholesale channel of transitioning certain product categories to a third-party licensing model. Constant currency is calculated by taking the average foreign currency exchange rate for the current period and applying that same rate to the comparable prior year period. Continuing category impacts are determined by removing the comparable prior period net revenues generated from product categories which are now licensed as well as removing current period licensing net revenues generated from those same licensed product categories.
The following table presents net revenues from continuing operations by segment, brand, channel and product group on both an as reported basis and a comparable constant currency continuing category basis for the second quarters ended April 30, 2015 and 2014 (in thousands):
Fiscal 2015 Net Revenues As Reported (GAAP) |
Less Fiscal 2015 Licensing Revenue from Licensed Product Categories |
Fiscal 2015 Comparable Net Revenues (Non-GAAP) |
Fiscal 2014 Net Revenues As Reported (GAAP) |
Impact of Fiscal 2015 Foreign Exchange Rates on Fiscal 2014 Net Revenues |
Less Fiscal 2014 Net Revenues from Licensed Product Categories |
Fiscal 2014 Constant Currency Continuing Category Net Revenues (Non-GAAP) |
%D Fiscal 2015 GAAP Net Revenues vs Fiscal 2014 GAAP Net Revenues |
%D Fiscal 2015 Non- GAAP Net Revenues vs Fiscal 2014 Non- GAAP Net Revenues |
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By Region: |
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Americas |
159,987 | (1,226 | ) | 158,761 | 186,247 | (7,316 | ) | (14,202 | ) | 164,729 | -14 | % | -4 | % | ||||||||||||||||||||||
EMEA |
115,792 | | 115,792 | 150,884 | (30,908 | ) | (59 | ) | 119,917 | -23 | % | -3 | % | |||||||||||||||||||||||
APAC |
56,276 | | 56,276 | 59,721 | (7,107 | ) | (150 | ) | 52,464 | -6 | % | 7 | % | |||||||||||||||||||||||
Corporate |
997 | | 997 | 89 | (33 | ) | | 56 | 1020 | % | 1680 | % | ||||||||||||||||||||||||
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333,052 | (1,226 | ) | 331,826 | 396,941 | (45,364 | ) | (14,411 | ) | 337,166 | -16 | % | -2 | % | |||||||||||||||||||||||
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By Brand: |
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Quiksilver |
138,701 | (153 | ) | 138,548 | 166,643 | (20,461 | ) | (6,860 | ) | 139,322 | -17 | % | -1 | % | ||||||||||||||||||||||
Roxy |
104,747 | (970 | ) | 103,777 | 120,091 | (12,338 | ) | (5,353 | ) | 102,400 | -13 | % | 1 | % | ||||||||||||||||||||||
DC |
80,896 | (103 | ) | 80,793 | 102,909 | (11,506 | ) | (2,198 | ) | 89,205 | -21 | % | -9 | % | ||||||||||||||||||||||
Other |
8,708 | | 8,708 | 7,298 | (1,059 | ) | | 6,239 | 19 | % | 40 | % | ||||||||||||||||||||||||
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333,052 | (1,226 | ) | 331,826 | 396,941 | (45,364 | ) | (14,411 | ) | 337,166 | -16 | % | -2 | % | |||||||||||||||||||||||
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By Channel: |
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Wholesale |
229,837 | | 229,837 | 286,205 | (33,413 | ) | (14,411 | ) | 238,381 | -20 | % | -4 | % | |||||||||||||||||||||||
Retail |
83,523 | | 83,523 | 89,510 | (10,516 | ) | | 78,994 | -7 | % | 6 | % | ||||||||||||||||||||||||
E-commerce |
16,149 | | 16,149 | 18,551 | (1,435 | ) | | 17,116 | -13 | % | -6 | % | ||||||||||||||||||||||||
Licensing/Royalties |
3,543 | (1,226 | ) | 2,317 | 2,675 | | | 2,675 | 32 | % | -13 | % | ||||||||||||||||||||||||
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333,052 | (1,226 | ) | 331,826 | 396,941 | (45,364 | ) | (14,411 | ) | 337,166 | -16 | % | -2 | % | |||||||||||||||||||||||
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By Product Group: |
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Apparel & Accessories |
231,579 | (1,226 | ) | 230,353 | 282,547 | (32,605 | ) | (14,411 | ) | 235,531 | -18 | % | -2 | % | ||||||||||||||||||||||
Footwear |
101,473 | | 101,473 | 114,394 | (12,759 | ) | | 101,635 | -11 | % | 0 | % | ||||||||||||||||||||||||
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333,052 | (1,226 | ) | 331,826 | 396,941 | (45,364 | ) | (14,411 | ) | 337,166 | -16 | % | -2 | % | |||||||||||||||||||||||
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The following table presents net revenues from continuing operations by segment, brand, channel and product group on both an as reported basis and a comparable constant currency continuing category basis for the first halves ended April 30, 2015 and 2014 (in thousands):
Fiscal 2015 Net Revenues As Reported (GAAP) |
Less Fiscal 2015 Licensing Revenue from Licensed Product Categories |
Fiscal 2015 Comparable Net Revenues (Non-GAAP) |
Fiscal 2014 Net Revenues As Reported (GAAP) |
Impact of Fiscal 2015 Foreign Exchange Rates on Fiscal 2014 Net Revenues |
Less Fiscal 2014 Net Revenues from Licensed Product Categories |
Fiscal 2014 Constant Currency Continuing Category Net Revenues (Non-GAAP) |
%D Fiscal 2015 GAAP Net Revenues vs Fiscal 2014 GAAP Net Revenues |
%D Fiscal 2015 Non- GAAP Net Revenues vs Fiscal 2014 Non- GAAP Net Revenues |
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By Region: |
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Americas |
307,754 | (1,703 | ) | 306,051 | 361,710 | (11,308 | ) | (24,927 | ) | 325,475 | -15 | % | -6 | % | ||||||||||||||||||||||
EMEA |
241,605 | | 241,605 | 300,280 | (51,127 | ) | (123 | ) | 249,030 | -20 | % | -3 | % | |||||||||||||||||||||||
APAC |
122,874 | | 122,874 | 129,596 | (12,686 | ) | (215 | ) | 116,695 | -5 | % | 5 | % | |||||||||||||||||||||||
Corporate |
1,673 | | 1,673 | 265 | (50 | ) | | 215 | 531 | % | 678 | % | ||||||||||||||||||||||||
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673,906 | (1,703 | ) | 672,203 | 791,851 | (75,171 | ) | (25,264 | ) | 691,416 | -15 | % | -3 | % | |||||||||||||||||||||||
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By Brand: |
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Quiksilver |
279,289 | (223 | ) | 279,066 | 330,487 | (33,264 | ) | (12,382 | ) | 284,841 | -15 | % | -2 | % | ||||||||||||||||||||||
Roxy |
205,164 | (1,314 | ) | 203,850 | 238,118 | (20,710 | ) | (8,131 | ) | 209,277 | -14 | % | -3 | % | ||||||||||||||||||||||
DC |
170,110 | (166 | ) | 169,944 | 205,899 | (19,121 | ) | (4,751 | ) | 182,027 | -17 | % | -7 | % | ||||||||||||||||||||||
Other |
19,343 | | 19,343 | 17,347 | (2,076 | ) | | 15,271 | 12 | % | 27 | % | ||||||||||||||||||||||||
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673,906 | (1,703 | ) | 672,203 | 791,851 | (75,171 | ) | (25,264 | ) | 691,416 | -15 | % | -3 | % | |||||||||||||||||||||||
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By Channel: |
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Wholesale |
422,202 | | 422,202 | 524,901 | (50,082 | ) | (25,264 | ) | 449,555 | -20 | % | -6 | % | |||||||||||||||||||||||
Retail |
202,647 | | 202,647 | 220,078 | (22,432 | ) | | 197,646 | -8 | % | 3 | % | ||||||||||||||||||||||||
E-commerce |
42,810 | | 42,810 | 42,025 | (2,657 | ) | | 39,368 | 2 | % | 9 | % | ||||||||||||||||||||||||
Licensing/Royalties |
6,247 | (1,703 | ) | 4,544 | 4,847 | | | 4,847 | 29 | % | -6 | % | ||||||||||||||||||||||||
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673,906 | (1,703 | ) | 672,203 | 791,851 | (75,171 | ) | (25,264 | ) | 691,416 | -15 | % | -3 | % | |||||||||||||||||||||||
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By Product Group: |
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Apparel & Accessories |
482,941 | (1,703 | ) | 481,238 | 588,954 | (57,022 | ) | (25,264 | ) | 506,668 | -18 | % | -5 | % | ||||||||||||||||||||||
Footwear |
190,965 | | 190,965 | 202,897 | (18,149 | ) | | 184,748 | -6 | % | 3 | % | ||||||||||||||||||||||||
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673,906 | (1,703 | ) | 672,203 | 791,851 | (75,171 | ) | (25,264 | ) | 691,416 | -15 | % | -3 | % | |||||||||||||||||||||||
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