Quik had a 3% sales increase in the quarter, growing to $492 million from $478 million in the same quarter last year but, as I define and discuss below, their adjusted EBITDA fell by 39%.
The gross margin percentage fell from 54.8% to 49.2%. That rather significant decline, they say in the 10Q, “…was primarily the result of higher levels of clearance business, the timing of certain royalties, higher input costs and the impact of fluctuations in foreign currency exchange rates.” The higher level of clearance represented 36% of the decline, we learn in the conference call.
In constant currency (ignoring the impact of foreign currency fluctuations), the wholesale business was up 2%, retail revenues increased 9%, and ecommerce was up 131%. Also in constant currency, Quiksilver brand revenues rose 4%. Roxy was up 5% and DC, 13%. As reported, Quiksilver brand revenues were $209 million, up 1%. Roxy revenues were up 3% as reported to $135 million, and DC had revenues of $131 million, up 11%.