Quiksilver Surpasses $1-Billion Sales Mark

Quiksilver Inc.’s annual sales swelled past $1 billion for the first time in fiscal 2004, a first for a “board sports” apparel manufacturer, a quintessentially Southern California enterprise.

The Huntington Beach-based company, which makes clothing and gear for surfing, skateboarding and snowboarding, said revenue in the 12 months ended Oct. 31 rose 30% to $1.27 billion.

Analyst Jeffrey Van Sinderen at B. Riley & Co. called that a milestone for the company, which has shown an ability to grow steadily as it moves into new markets and adds brands. Quiksilver now has a stable of 17 brands, including Roxy Girl and Hawk Clothing.

“They’ve executed extremely well,” Van Sinderen said.

For fiscal 2005, Quiksilver executives said they expected per-share earnings of $1.58 to $1.62. Analysts were expecting $1.62.

Shares of Quiksilver fell to as low as $29.37 in after-hours trading Thursday.

In regular New York Stock Exchange trading, shares had fallen 8 cents to $29.50. The company released its results after the market closed.

The sharp increase in sales for its fourth quarter was exceeded by an even higher run-up in profit, which rose 43% to $24.9 million, or 41 cents a share, from $17.4 million, or 30 cents, in the year-earlier period.

That was a penny a share more than the consensus estimate of analysts polled by Thomson First Call. Fourth-quarter sales jumped 30% to $350.3 million.

Company executives said sales were particularly strong in Asia and the Pacific region, jumping 53% in the quarter to $56.1 million.

Quiksilver’s results were boosted by the acquisition in May of Vista, Calif.-based DC Shoes. Holiday sales and spring bookings also have been strong, the company said.

The results “capped another outstanding year for our company,” Chief Executive Robert B. McKnight Jr. told analysts during a conference call.

For the year, profit grew 39% to $81.4 million, or $1.36 cents a share, compared with $58.5 million, or $1.03, in fiscal 2003. That was a penny a share more than analysts’ upgraded expectations.