Quiksilver Selling Shares Plunge

Ryan Drexler and its investment company Consac LLC said that Quiksilver Inc. management should look for buyers before the situation worsens, in order to protect the rapidly declining shareholder value.

Due to the sluggish performance, Quiksilver Inc. (NYSE: ZQK) has fallen 73% in the past 12 months, leaving only 300 million dollars in market value, which was 1/5 two years ago.

At the end of last month, Quiksilver Inc. (NYSE: ZQK) announced that the replacement of chief executive and chief financial officer would result in a sharp fall of 16.4% in the day, the largest single day decline since September.

Andy Mooney, the chief executive who has just been in office for more than two years, has left Quiksilver Inc. and replaced Pierre Agnes, who has served the company for 27 years and was promoted to the president of the company in November last year.

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. It served as CEO of the company from 1979 to July 1991. It was president and CEO in August 1991 and 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, but 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 find growth opportunities.

As the key object.

However, due to the strong US dollar, Quiksilver Inc. declined year after year.

It is expected that the annual revenue is expected to fall to 13.8-14.5 billion from the previous 14.8-15.5 billion, and the gross margin will be lowered from 48.5%-50.0% to 48.5%-50.0%.

Consac LLC says it owns more than 3 million 500 thousand shares of Quiksilver Inc.. The company says Quiksilver Inc. is still valuable for strategic buyers of similar sports and lifestyle brands such as Nike Inc., Nike (Group), or VF Corp. (Group).

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%.