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View All NewsHeidrick Q2 revenue falls with decline in Europe
Second-quarter net revenue fell 2.2% at Heidrick & Struggles International Inc. (NASD: HSII), the Chicago-based executive search and leadership consulting firm. Much of the decline was in Europe where net revenue fell 22.8%, or 10.6% on a constant currency basis.
| (US$ thousands) | Q2 2015 | Q2 2014 | % growth |
| Net revenue | $133,045 | $136,080 | -2.2% |
| Reimbursements | $4,641 | $4,878 | -4.9% |
| Total revenue | $137,686 | $140,958 | -2.3% |
| Net income/loss | $4,956 | $3,787 | 30.9% |
Quote
“Results from Europe were disappointing, with a decline in revenue that was doubled by the negative impact of currency fluctuations,” said President and CEO Tracy Wolstencroft. “Improving our business in Europe is a high management priority.”
Revenue by segment and geography
| (US$ thousands) | Q2 2015 | Q2 2014 | % growth | % growth in constant currency |
| Executive search and leadership consulting | ||||
| Americas | $75,820 | $70,466 | 7.6% | 9.1% |
| Europe | $24,075 | $31,201 | -22.8% | -10.6% |
| Asia Pacific | $24,777 | $25,062 | -1.1% | 6.6% |
| Total executive search and leadership consulting | $124,672 | $126,729 | -1.6% | |
| Culture shaping | $8,373 | $9,351 | -10.5% |
Guidance
Heidrick forecasts consolidated net revenue of between $130 million and $140 million in the third quarter, an increase of 7.3% at the midpoint of the range.
Share price and market cap
Shares in Heidrick fell 6.17% in early afternoon trading to $22.20, and the company had a market cap of $406.70 million, according to Yahoo!