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HUNTINGTON BEACH, United States — Quiksilver Inc. shares plunged as much as 16 percent after the struggling surfwear chain replaced its top executives and restated earnings results.
Pierre Agnes, who was Quiksilver’s president, will become chief executive officer immediately, the Huntington Beach, California-based retailer said in a statement on Friday. He replaces Andy Mooney, who has left the company. Chief Financial Officer Richard Shields also is stepping down. Thomas Chambolle, currently CFO for Quiksilver’s European operations, will take over the job next week.
The management shake-up follows a disappointing sales forecast earlier this month and the restatement of earnings. The company said it made errors when recording a writedown of the sale of its stake in Surfdome Shop Ltd. The changes raised earnings to 10 cents a share last quarter, up from 9 cents, and affected revenue figures in the past four periods.
The stock fell as low as $1.90 in New York, the biggest intraday decline since Sept. 5. The shares had been up 1.8 percent this year before the tumble.
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In addition to the CEO and CFO changes, Quiksilver’s Asia regional president, Greg Healy, will become president of the company. Bob McKnight, who founded the company, will take back the chairman role.
“The board has great confidence in Pierre’s ability and skills to lead our company,” McKnight said in the statement. “His primary focus will be on improving operational execution and efficiencies, and identifying growth opportunities, especially in the U.S. wholesale channel.”
By Nick Turner; editor: Kevin Orland.
