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Quiksilver Inc.'s (ZQK) fiscal first-quarter net loss widened as weak customer traffic resulted in lower sales and margins.

The retailer also said it won extension of a EUR55 million European line of credit until June 30 from March 14 as the company looks at strategic and financing alternatives. The company, which relies on short-term and uncommitted funding, has about a quarter of its consolidated debt coming due in the current fiscal year.

"While our performance in the quarter was in line with our overall expectations, deteriorating macro conditions made for a very difficult operating environment," said Chief Executive Robert McKnight.

Like other retailers, the outdoor-sports apparel and accessories maker has been hurt by the dropoff in consumer spending. In January, the company said it would cut 200 jobs and reduce expenses in the Americas by 10%. It also cut some executives' pay by 5%, and saw its credit ratings cut further into junk territory.

For the quarter ended Jan. 31, the company reported a net loss of $194.4 million, or $1.53 a share, compared with a year-earlier loss of $21.9 million, or 17 cents a share. Quiksilver has posted only one quarterly profit in the past two years.

The latest results included a $50.8 million write-off of deferred tax assets in the U.S. and a $6.1 million severance charge in the Americas. Excluding items, the loss was 7 cents a share compared with a year-earlier loss of 6 cents.

Revenue dropped 11% to $443.3 million.

Analysts' estimates were for a loss of 10 cents a share on revenue of $436 million, according to a poll by Thomson Reuters.

Gross margin fell to 46.7% from 49%, while inventory increased 4.4%.

Revenue fell in all regions, with the biggest drop, 13%, in the Americas. The Americas segment also swung to an operating loss of $16.3 million from a profit of $7.1 million a year earlier. Earnings rose 1.8% in Europe but slid 3.6% in Asia/Pacific.

Quiksilver's shares jumped in January on reports that Nike Inc. (NKE) was interested in acquiring the company, but neither would comment.

Meanwhile, Quiksilver has been reducing its sports-equipment operations, by selling its Rossignol Group unit, which makes skis, in November and its golf-equipment unit before that.

Looking ahead, Quiksilver expects fiscal second-quarter earnings to be in the mid-single digits and revenue to fall in the mid-teens on a percentage basis. Analysts estimated earnings of 16 cents a share on revenue of $526 million, down 12%.

Quiksilver's shares closed Wednesday at $1.17, up 6.6%. The stock price has fallen 89% in the past year.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com