Quiksilver's Profit Jumps 55%
Quiksilver Inc., one of the biggest names in surf wear,
reported a 55% increase in fiscal first-quarter profit
Thursday and raised its profit expectations for the
year. Quiksilver designs, produces and distributes
clothing, accessories and related products for
young-minded people and develops brands that represent a
casual lifestyle'driven from a boardriding heritage.
Quiksilver's authenticity is evident in its innovative
products, events and retail environments across the
Quiksilver's primary focus is apparel, footwear and
related accessories for young men and young women under
the Quiksilver, Roxy, DC Shoes, Raisins, Radio Fiji and
Island Soul labels. Quiksilver also manufactures
apparel, footwear and related accessories for boys
(Quiksilver Boys and Hawk Clothing), girls (Roxy Girl,
Teenie Wahine and Raisins Girls), men (Quiksilveredition
and Fidra) and women (Leilani swimwear), as well as
snowboards, snowboard boots and bindings under the Lib
Technologies, Gnu, DC Shoes, Roxy and Bent Metal labels.
Quiksilver's products are sold throughout the world,
primarily in surf shops, skate shops and other specialty
stores that provide an authentic retail experience for
Net income at the Huntington
Beach company jumped to $14 million, or 23 cents a
share, for the quarter ended Jan. 31, up from $9
million, or 16 cents, a year earlier. Revenue increased
34% to $342.9 million.
Quiksilver sells surfing, skateboarding and snowboarding
apparel and footwear under the Quiksilver, Roxy, DC
Shoes, Hawk Clothing and Radio Fiji labels. On Thursday,
Quiksilver raised its profit expectations for 2005 to
$1.62 to $1.65 a share, up from its earlier forecast of
$1.58 to $1.62. Analysts are expecting $1.63.
For the quarter, sales in Europe were up 25% to $132.6
million from the same time last year, and sales in Asia,
including Japan, were up 92% to $50.5 million, the firm
The company reported its results after the market
closed. Its stock, which lost 90 cents to $32.85 in
regular New York Stock Exchange trading, rose to $33
Quiksilver saw a profit jump in the Asia/ Pacific region
of 53 per cent in the final quarter of last year.
Company Contact: Robert B. McKnight, Jr.
Chairman & CEO
Steven L. Brink
Chief Financial Officer
FOR IMMEDIATE RELEASE (714) 889-2200
Investor Relations: James Palczynski/Chad Jacobs
Integrated Corporate Relations (203) 222-9013
QUIKSILVER, INC. REPORTS 2005 FIRST QUARTER FINANCIAL
' First Quarter 2005 Net Revenues Increase 34% to a
Record $343 million '
' First Quarter Fiscal 2005 Earnings Per Share Increases
55% to a Record $0.23 '
' Company Raises Fiscal 2005 Guidance '
HUNTINGTON BEACH, CALIFORNIA, MARCH 10, 2005 - - -
Quiksilver, Inc. (NYSE:ZQK)
today announced operating results for the first quarter
ended January 31, 2005.
Consolidated net revenues for the first quarter of
fiscal 2005 increased 34% to $342.9
million as compared to fiscal 2004 first quarter
consolidated revenues of $256.1 million.
Consolidated net income for the first quarter of fiscal
2005 increased 55% to $14.2 million as
compared to $9.2 million in the first quarter of fiscal
2004. First quarter fully diluted earnings
per share was $0.23 versus $0.16 for the first quarter
of fiscal 2004.
Robert B. McKnight, Jr., Chairman of the Board and
Chief Executive Officer of
Quiksilver, Inc., commented, 'I am incredibly proud of
our company and our ability to
consistently execute at the highest level. Financially,
our strong results reflect the global demand
for our entire portfolio of brands along with the
continued improvements in our operating
efficiencies. From a merchandise perspective, the
tremendous feedback we received at the recent
tradeshows speaks to the creativity of our team and our
ongoing commitment to bringing the best
product to market. Strategically, we are effectively
integrating our businesses around the world
and creating a superior platform for growth.'
Net revenues in the Americas increased 29% during the
first quarter of fiscal 2005 to
$159.3 million as compared to fiscal 2004 first quarter
revenues of $123.2 million. As measured
in U.S. dollars and reported in the financial
statements, European net revenues increased 25%
2005 First Quarter Results during the first quarter of
fiscal 2005 to $132.6 million as compared to fiscal 2004
first quarter European net revenues of $106.2 million.
As measured in euros, European net revenues
increased 16% for those same periods. Asia/Pacific net
revenues increased 92% to $50.5 million
in the first quarter of fiscal 2005 compared to $26.3
million in the first quarter of fiscal 2004.
Consolidated inventories increased 32% to $236.8 million
at January 31, 2005 from
$179.3 million at January 31, 2004. Inventories grew 29%
in constant dollars. Consolidated
trade accounts receivable increased 26% to $252.1
million at January 31, 2005 from $200.6
million at January 31, 2004. Trade account receivable
growth was modest compared to the
increase in revenues as average days sales outstanding
decreased about four days.
Bernard Mariette, President of Quiksilver, Inc.,
commented, 'We are very happy to post
strong results for another quarter. The clarity in our
mission and the consistency in our execution
continue to guide our investments in people and
businesses. We are confident that the strength
of our brands, our leadership status and our
well-defined growth strategy will allow us to
continue to deliver excellent financial performance into
The Company also raised its net revenues and earnings
per share guidance for fiscal 2005.
The Company now expects fiscal 2005 net revenues to
range from $1.48 billion to $1.50 billion
and earnings per share to range from $1.62 to $1.65. Mr.
McKnight concluded, 'We are extremely pleased with the
vibrancy of our brands and the pace of our businesses.
We begin the new fiscal year with solid momentum and a
heightened level of enthusiasm about our future
prospects. Quiksilver has evolved into the premier
lifestyle company for the youth culture around the globe
and we are committed to further building on our powerful
position in the market.'