Quiksilver Replacement Executives Cut Annual Performance Expectations

After a week ago released the data that disappointed the market, Quiksilver Inc. (NYSE: ZQK), the US extreme sport Brand Company, recently announced the announcement of the replacement of its chief executive and chief financial officer, resulting in its stock price plunging by 16.4% on Friday, the largest single day decline since September.

The chief executive who has been in office for more than two years.

Already leaving Quiksilver Inc., instead of Pierre Agnes, who has been serving the company for 27 years and promoted to President of the company in November last year, the position of president has fallen onto the shoulders of Greg Healy, President of the current Asia region.

Meanwhile, Quiksilver Inc. co founder Bob McKnight, who was replaced by Andy Mooney in January 2013, will return to the company as chairman.

Bob McKnight founded Quiksilver Inc. in 1976, and served as a company from 1979 to July 1991.

As chairman and chief executive officer in August 1991, he was re appointed as president in February 2008.

Under the leadership of Bob McKnight, Quiksilver Inc. has become an outdoor sports Brand Company with annual sales of $2 billion. The company now has three major brands: Quiksilver, Roxy and DC.

In addition, the company's chief financial officer

It will also leave, replaced by Thomas Chambollem, the current chief financial officer of Europe.

Quiksilver Inc. did not provide a significant restructuring of management. However, in the announcement, it was pointed out that the primary task of Andy Mooney is to improve the company's business and efficiency and to identify opportunities for growth, focusing on North American wholesale channels.

Quiksilver Inc. (NYSE: ZQK) closed at $15.56% on Friday, at $1.90.

Due to its sluggish performance, the stock has fallen by 76.50% in the past 12 months, leaving only 326 million dollars in market value.

In the first quarter of fiscal year ending January 31, 2015, Quiksilver Inc. continued operating net loss of $18 million 290 thousand, narrowing from $21 million 890 thousand in the same period last year, and diluted earnings per share fell from $0.13 to $0.11, better than analysts' average expected $0.13.

Revenue recorded $340 million 900 thousand, down 13.7% from a year earlier of $394 million 900 thousand, also better than analysts' expectations of $339 million, and fixed exchange rate decreased by 4%. In the first quarter, Quiksilver Inc. had a 3% decline in same store sales; gross margins fell 110 basis points to 49.7%.

However, due to the strength of the US dollar, Quiksilver Inc. lowered its annual performance expectations. The annual revenue is expected to fall from the previous 14.8-15.5 billion to 13.8-14.5 billion, and the gross margin has been lowered from 48.5%-50.0% to 48.5%-50.0%.