QUIKSILVER EARNINGS UP 37.9% IN QUARTER
NEW YORK — Quiksilver Inc. reported third-quarter earnings surged 37.9 percent as sales gained 34.4 percent.
The young men’s and junior company said profits grew to $5.6 million, or 24 cents a diluted share, from $4.1 million, or 18 cents, a year ago. Earnings were one cent ahead of Wall Street expectations.
Sales in the three months ended July 31 climbed to $105.2 million from $78.3 million. Domestic sales jumped 38.9 percent to $69.4 million, while European sales climbed 26.4 percent to $35.7 million.
Gross margins improved to 39 percent of sales from 38.1 percent last year.
Steven L. Brink, chief financial officer, said that the company saw across-the-board strength in all its divisions, including Roxy, the company’s junior line. Roxy now accounts for about 20 percent of the company’s domestic sales, according to Brink.
Robert B. McKnight Jr., chairman and chief executive, said in a statement that during the latest quarter, Quiksilver opened five Boardriders Clubs, which are freestanding retail shops, and 218 Quiksvilles, which are in-store concept shops. There are now 74 freestanding Quiksilver Boardriders Club retail stores, of which 68 are owned by licensees and six by the company. In Europe, there are 46 retail stores, of which three are owned by Quiksilver.
In addition to its core Quiksilver line, the company designs and arranges for the production of casual sportswear and swimwear under a variety of names, including Roxy, Raisins, Radio Fiji, Leilani and QS Silver Edition.
In the latest quarter, Quiksilver completed its move to new headquarters in Huntington Beach, Calif., from Costa Mesa, the company said.
In the nine months, earnings rose 60.7 percent to $18.7 million, or 80 cents a share, from $11.6 million, or 54 cents. Sales climbed 50.8 percent to $319.2 million from $211.7 million, with domestic sales rising 54.8 percent to $204.6 million and European sales increasing 44.1 percent to $114.6 million.