Quiksilver’s quarterly profit nearly doubles
Quiksilver Inc., a maker of surf-inspired apparel, said Thursday that quarterly earnings nearly doubled as revenue exceeded forecasts on strong sales of its Rossignol ski products.
Profits were in line with a lowered forecast the Huntington Beach-based company gave this year when it said soft summer demand for Rossignol gear and a weak golf market had hurt sales.
Revenue, however, beat both the company’s and analysts’ expectations.
Net income for its fiscal fourth quarter that ended Oct. 31 rose to $65.3 million, or 51 cents a share, from $33.6 million, or 27 cents, a year earlier.
In September, Quiksilver predicted fourth-quarter earnings of 51 cents a share. Wall Street analysts on average expected earnings of 51 cents, according to Reuters Estimates.
Excluding stock-based compensation, Quiksilver earned 54 cents a share, it said in a statement. Revenue climbed 22% to $778.4 million, above analysts’ average estimate of $747.5 million, and above the company’s estimate of $745 million to $750 million.
In the Americas, revenue rose 14% to $330.4 million. European revenue rose 28% to $345.8 million and Asia-Pacific revenue rose 30% to $100.3 million.
The company said its Quiksilver, Roxy, DC and Rossignol businesses “are all performing at a high level.” Quiksilver acquired Rossignol last year and planned to turn the French brand into a global apparel business.
Quiksilver also reiterated its 2007 forecast. In September, the company said it expected to earn 88 cents to 92 cents a share next year.
Quiksilver shares rose 51 cents to $14.56.