QUIKSILVER INC. SAID THURS-day that the company swung to a third-quarter profit from a year-ago loss.
This story first appeared in the September 5, 2008 issue of WWD. Subscribe Today.
For the three months ended July 31, income was $2.9 million, or 2 cents a diluted share, versus a loss of $7.9 million, or 6 cents, in the year-ago quarter. Income from continuing operations dropped 7.4 percent to $33.1 million, or 25 cents a diluted share, from $35.7 million, or 38 cents. Without a 3 cent tax benefit, earnings from continuing operations for the most recent quarter were 22 cents a share.
Revenues rose 6.9 percent to $564.9 million from $528.6 million. Figures include results from Rossignol, the winter sports equipment and apparel operation that is being sold.
Analysts expected earnings from continuing operations of 21 cents a diluted share on sales of $543.9 million.
Quiksilver said last month that the group buying Rossignol includes Chartreuse & Mont Blanc, which is run by former Rossignol chief executive officer Bruno Cercley. Chartreuse & Mont Blanc is owned by the Australian financial services company Macquarie Group. The deal for $147.6 million is expected to close in the fall.
For the nine months, Quiksilver’s loss widened to $225.3 million, or $1.74 a diluted share, from $10.2 million, or 8 cents, during the same period last year. Excluding discontinued operations, profits were up 9 percent to $79.4 million, or 61 cents, from $72.8 million, or 56 cents.
Revenues rose 13.6 percent to $1.66 billion from $1.46 billion.
“Our performance overall was in line with our expectations and we are relatively pleased to deliver results in this range, given the negative trends we’ve all witnessed during the quarter in the retail environment,” said Robert B. McKnight Jr., chairman, president and ceo of Quiksilver.
The company said that it believes it can achieve earnings per share of slightly less than 90 cents for continuing operations for the fiscal year.