Quiksilver Inc. on Thursday posted improved second-quarter results and said it expects a third-quarter profit.
For the three months ended April 30, income attributable to Quiksilver shareholders more than tripled to $9.4 million, or 6 cents a diluted share, compared with $2.8 million, or 2 cents, in the year-ago quarter. On a pro forma basis, excluding restructuring charges, a stock compensation expense and a $1.3 million gain on the sale of the Raisins swimwear trademarks, consolidated income from continuing operations was $15.7 million compared with $6.6 million last year. Income from continuing operations exclude results from the Rossignol business, which the firm sold in November 2008 and is reported under discontinued operations.
Revenues in the quarter were down 5.2 percent to $468.3 million from $494.2 million, but the cost of goods decreased 16.1 percent to $219 million from $261.1 million to give the outdoor sports lifestyle firm a 6.9 percent gain in gross profit to $249.3 million from $233.1 million.
Revenues in the Americas fell 13.2 percent to $199.7 million, while those in Europe inched down 0.9 percent to $208.7 million. Revenues in the Asia/Pacific operating segment rose 12.1 percent to $58.6 million.
Robert B. McKnight Jr., chairman, president and chief executive officer, said, “Even as the global economies exhibit inconsistent signs of recovery, it’s clear that the bold steps we’ve taken over the past several quarters to improve our operations and to stabilize our financial structure have made us a much stronger company. With inventories well-managed and great products in the market, we are well positioned to deliver improved financial performance in the future.”
In the six months income attributable to Quiksilver was $4.1 million, or 3 cents a diluted share, against a loss of $191.6 million, or $1.51, in the comparable year-ago period. Revenues fell 3.9 percent to $901 million from $937.5 million.
In the third quarter, Quiksilver expects EPS in the low-sing-digit cents area with revenues falling in the low-teens.