Quiksilver’s Earnings Climb 35% in Quarter

Sports apparel and equipment maker Quiksilver Inc. said Friday that its fiscal fourth-quarter profit jumped 35%, boosted by revenue from its newly acquired Rossignol ski equipment brand and solid growth in its core apparel and shoe brands.

The results allayed lingering concerns that the Rossignol acquisition represented a drain on the Huntington Beach-based company. Quiksilver shares rose 85 cents to $13.78.

“People were nervous over the acquisition,” said Pacific Growth Equities analyst Christine Chen, who attributed the stock rise to Quiksilver’s beating sales estimates, driven by growth in its core business.

Moreover, news that recently launched Roxy skis for women were selling out in stores “gave people comfort that they know what they’re doing and there’s a market,” Chen said.

Quiksilver reported net income of $33.6 million, or 27 cents a share, in the quarter ended Oct. 31, compared with $24.9 million, or 20 cents, a year earlier.

Wall Street analysts on average had forecast earnings of 26 cents per share, according to Reuters Estimates.

The apparel manufacturer and retailer, whose surf- and skateboarding-inspired brands include Quiksilver, Roxy and DC Shoes, said revenue grew 82% to $637.4 million. Contributing to that figure was $214.5 million in sales from the Rossignol and Cleveland Golf businesses.

“There is no question in our mind that we have captured a tremendous growth vehicle,” Quiksilver Chairman and Chief Executive Bob McKnight said of Rossignol.

Quiksilver is streamlining Rossignol operations, with cost savings expected within three years of $25 million, including $10 million from back office and marketing operations, President Bernard Mariette said. Those efforts include cutting about 200 jobs, he said.

Looking ahead to 2006, Quiksilver reiterated a full-year forecast for earnings of 87 cents to 88 cents a share and said sales would be $2.25 billion to $2.27 billion.

The company had lowered its 2006 outlook in October -- sending its shares down as much as 17% in one day -- citing the Rossignol integration, the strengthening dollar and higher interest expense.

Wall Street now anticipates earnings of 88 cents a share on revenue of $2.25 billion, according to Reuters Estimates.