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Quiksilver Net Up 11%

NEW YORK — Quiksilver Inc. rode a wave of top-line growth to healthy gains in its third-quarter bottom line.<br><br>For the three months ended July 31, the Huntington Beach, Calif.-based activewear maker reported net earnings swelled 11.2...

NEW YORK — Quiksilver Inc. rode a wave of top-line growth to healthy gains in its third-quarter bottom line.

This story first appeared in the September 20, 2002 issue of WWD.  Subscribe Today.

For the three months ended July 31, the Huntington Beach, Calif.-based activewear maker reported net earnings swelled 11.2 percent to $8.8 million, or 36 cents a diluted share. That compares with last year’s profits of $8 million, or 34 cents. Earnings per share eclipsed the Wall Street consensus forecast by 4 cents.

Sales for the quarter grew 12 percent to $174 million from $155.3 million last year.

“The ongoing strength of our brands, the consistency of our product and our heightened level of execution have allowed us to once again exceed our goals, despite the challenges in the retail market both here and abroad,” said chief executive officer Robert McKnight Jr. in a statement. “Our continued strong bookings trend for the holiday season, coupled with the solid pace of our sell-through in all channels of distribution, bodes well for our business.”

By segment, Quiksilver’s domestic net sales increased 5.7 percent to $107.3 million from $101.5 million last year, while in Europe, net sales rose 24 percent to $66.6 million from $53.7 million a year ago.

For the first nine months of the fiscal year, the company reported profits declined 1 percent to $25.4 million, or $1.04 a diluted share. In the comparable period last year, Quiksilver posted earnings of $25.6 million, or $1.06.

Sales for the period gained 13.6 percent to $505.7 million from $445.3 million a year ago. By segment, U.S. sales grew 6.2 percent to $308.4 million from $290.5 million, and European sales jumped 27.5 percent to $197.4 million from $154.8 million in the year-ago period.

Nine-month profits were down despite the sales increase because of a 4.7 percent drop in royalty income as well as a loss on foreign exchange of $596,000 compared with last year’s exchange benefit of $409,000.