Quiksilver Earnings Up 21%
HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–Sept. 7, 2000–Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the third quarter and nine months ended July 31, 2000.
Consolidated net sales for the third quarter of fiscal 2000 increased 16.0% to $122,011,000 as compared to fiscal 1999 third quarter consolidated net sales of $105,160,000. Consolidated net income for the third quarter of fiscal 2000 rose to $6,670,000 as compared to $5,623,000, and fully-diluted earnings per share increased 20.8% to $0.29 versus $0.24 for the third quarter of fiscal 1999.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “We are once again pleased with our performance during the quarter, particularly given the challenging retail environment. These solid results represent our 14th consecutive quarter of double digit earnings growth, and are a testament to our in-depth knowledge of our consumer, our diversified distribution and the ongoing strength of our brands.”
“Other accomplishments during the quarter included; the completion of the Quiksilver International acquisition, the initial shipment of the Hawk line in specialty stores, the opening of a company-owned Roxy store in South Coast Plaza and the successful launch of our new contemporary women’s line, Alex Goes,” Mr. McKnight continued.
Domestic net sales during the third quarter of fiscal 2000 increased 15.2% to $79,971,000 as compared to fiscal 1999 third quarter domestic net sales of $69,411,000. As measured in French Francs, European net sales increased 31.5% for those same periods. As measured in U.S. dollars and reported in the financial statements, European net sales increased 17.6% during the third quarter of fiscal 2000 to $42,040,000 as compared to fiscal 1999 third quarter European net sales of $35,749,000.
Mr. McKnight further commented, “We once again achieved positive gains across all channels of distribution during the quarter, and sell-throughs have significantly improved over last year’s level and versus last season. We also just came off a very strong show at MAGIC, and we are encouraged about our momentum as we head into the Action Sports Retailer tradeshow.”
Consolidated net sales for the first nine months of fiscal 2000 increased 14.0% to $364,079,000 as compared to fiscal 1999 first nine months consolidated net sales of $319,235,000. Consolidated net income for the first nine months of fiscal 2000 rose to $22,058,000 as compared to $18,719,000, and fully-diluted earnings per share increased 18.8% to $0.95 versus $0.80 for the first nine months of fiscal 1999. Domestic net sales during the first nine months of fiscal 2000 increased 15.4% to $236,150,000 as compared to fiscal 1999 first nine months domestic net sales of $204,649,000. As measured in French Francs, European net sales increased 26.2% for those same periods. As measured in U.S. dollars and reported in the financial statements, European net sales increased 11.6% during the first nine months of fiscal 2000 to $127,929,000 as compared to fiscal 1999 first nine months European net sales of $114,586,000.
Consolidated inventories increased 15.5% to $83,378,000 at July 31, 2000 from $72,207,000 at October 31, 1999, while increasing 13.9% compared to July 31, 1999. Inventory turnover increased during the quarter in comparison to the previous year. Consolidated trade accounts receivable increased 3.0% to $110,797,000 at July 31, 2000 from $107,619,000 at October 31, 1999, while increasing 17.2% compared to July 31, 1999. These increases in accounts receivable are consistent with the increase in sales.
McKnight concluded, “We are on track to achieve another record year in sales and earnings which underscores our ability to profitably expand our business while preserving the legitimacy of our portfolio of brands. More importantly, we still have a significant amount of unrealized growth potential andd we look forward to translating these opportunities into continued long term growth.”
Quiksilver designs, produces and distributes clothing, accessories and related products for active-minded people and develops brands that represent a casual lifestyle – driven from a boardriding heritage. Quiksilver’s authenticity is evident in its innovative products, events and retail environments across the globe.
Quiksilver’s primary focus is apparel for young men and young women under the Quiksilver, Quiksilver Roxy, Raisins, Radio Fiji and Hawk Clothing labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Teenie Wahine and Raisins Girls), men (QS Silver Edition) and women (Leilani and Alex Goes), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops and specialty stores that provide an outstanding retail experience for their customers.
NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at http://www.quiksilver.com, http://www.mervin.com, and http://www.hawkclothing.com.