Sales and profit growth in Europe lifted Quiksilver Inc.’s third-quarter top- and bottom-line results in the third quarter.
In the three months ended July 31, net income rose 25.7 percent to $10.4 million from $8.3 million in the 2010 period. Earnings were 6 cents a diluted share in both periods with shares outstanding up in the more recent period. Analysts expected EPS of 8 cents.
Revenues grew 14 percent to $503.3 million from $441.5 million, with Europe’s sales up 16.3 percent to $176.4 million and ahead 2 percent on a constant currency basis. Sales in the Americas rose 10.9 percent to $260.2 million while those in the Asia-Pacific region increased 20.2 percent to $65.5 million but were down 3 percent on a constant currency basis.
The company’s retail operations posted a same-store sales increase of 21 percent, while e-commerce grew 65 percent.
Gross margin declined to 50.7 percent of sales from 52.3 percent in last year’s quarter.
“The margin compression was largely driven by our Americas business, reflecting higher sourcing costs and some promotional pricing,” said Joseph Scirocco, chief operating officer and chief financial officer of the Huntington Beach, Calif.-based firm, in comments during the company’s quarterly conference call. “Gross margins contracted just 30 points in Europe and in the Asia-Pacific region as both were able to offset a fair portion of higher input costs with favorable currency hedging contracts in place for fiscal ’11.”
Responding to an analyst’s question, he commented that price increases were keeping pace with the increased cost of goods and stuck by earlier estimates that full-year margins would be in line with those of 2010. For the nine months, gross margins rose to 52.6 percent of sales from 52.3 percent.
Robert McKnight, chairman and chief executive officer of Quiksilver, said the company was encouraged by consumer and retailer reactions several merchandising initiatives, including Roxy’s Surf Denim and Quiksilver offerings for girls and men over 30.
He reported that the Quiksilver Pro New York surf contest sponsored by the company in Long Beach, N.Y., would go on as scheduled beginning Sunday.
Results were reported after the close of the market on Thursday. On Friday, as equity markets around the world dipped, shares of Quiksilver fell 18 cents, or 4.4 percent, to end the week at $3.94.
In the nine months, the company registered a net loss of $89.2 million, or 55 cents a share, principally because of asset impairment charges against its Asia-Pacific operations, versus net income of $12.4 million, or 9 cents, in the prior-year period. Revenues were up 4.9 percent to $1.41 billion.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)