Quiksilver's Dollars Plummet Due to Lack of Snow


Due to the unseasonably warm winter, especially in Europe, Quiksilver, a winter sports company, saw its net income plummet 86.7% just in the first quarter of this year. We already know that many ski resorts are suffering from lack of snow due to global warming, but now we're seeing it trickle down into the entire industry as well. Quiksilver purchased Rossignol in July 2005 to expand its reach into snow sports and saw an opportunity to extend some of their other lines as well, including Roxy apparel. When Quiksilver was riding a 52-week high back in December they announced that the integration with Rossignol was nearly completed. But now, retailers have pulled back on new merchandise and are dramatically discounting the products they already carry. Quiksilver Chief Executive Robert McKnight Jr. said that Rossignol orders specifically are now down 20% to 25% and that some retailers are packing away this winter's Rossignol products and saving them for next year. This downgraded the stock and shares are now at a 52-week low at $10.90. Let's hope that all of the skeptics now agree we need to "Save Our Snow." Via ::Wall Street Journal