June 5, 2002
HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–JUNE 5, 2002–Quiksilver, Inc. (NYSE:ZQK):
– Company Reports EPS of $0.55 vs. First Call Consensus Estimateof $0.51
– Consolidated Sales Increase 11%
– Consolidated Fall Bookings Increase 18%
Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the second quarter and six months ended April 30, 2002. Consolidated net sales for the second quarter of fiscal 2002 increased 10.6% to $185,969,000 as compared to fiscal 2001 second quarter consolidated net sales of $168,198,000. Consolidated net income for the second quarter of fiscal 2002 totaled $13,463,000 or $0.55 per share on a diluted basis as compared to $13,981,000 or $0.58 per share on a diluted basis for the second quarter of fiscal 2001.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “Once again, we outperformed both sales and earnings expectations with exceptional strength in Europe. We were also pleased with our domestic business, which performed well during the quarter despite the challenging retail environment. Our continued strong momentum and robust fall bookings gives us a high degree of confidence for the second half of the year.”
Domestic net sales during the second quarter of fiscal 2002 increased 0.7% to $111,215,000 as compared to fiscal 2001 second quarter domestic net sales of $110,392,000. As measured in euros, European net sales increased 33.6% for those same periods. As measured in U.S. dollars and reported in the financial statements, European net sales increased 29.3% during the second quarter of fiscal 2002 to $74,754,000 as compared to fiscal 2001 second quarter European net sales of $57,806,000.
Consolidated net sales for the first six months of fiscal 2002 increased 14.4% to $331,775,000 as compared to fiscal 2001 first six months consolidated net sales of $290,031,000. Consolidated net income for the first six months of fiscal 2002 was $16,549,000 or $0.69 per share on a diluted basis as compared to $17,687,000 or $0.74 per share on a diluted basis for the first six months of fiscal 2001. Domestic net sales during the first six months of fiscal 2002 increased 6.4% to $201,042,000 as compared to fiscal 2001 first six months domestic net sales of $188,967,000. As measured in euros, European net sales increased 32.4% for those same periods. As measured in U.S. dollars and reported in the financial statements, European net sales increased 29.4% during the first six months of fiscal 2002 to $130,733,000 as compared to fiscal 2001 first six months European net sales of $101,064,000.
Mr. McKnight continued, “Our strong business in Europe has insulated our financial results from some of the recent turbulence in the US market. Additionally, as is obvious from looking at our results this quarter, it is providing a significant source of revenue growth. We are positioned to take full advantage of what we see as the global emergence of a mainstream, board-sports oriented lifestyle.”
Consolidated inventories decreased 29.1% to $76,313,000 at April 30, 2002 from $107,562,000 at October 31, 2001, and decreased 22.3% compared to April 30, 2001. Consolidated trade accounts receivable increased 10.1% to $171,669,000 at April 30, 2002 from $155,879,000 at October 31, 2001, and increased 14.9% compared to April 30, 2001.
Bernard Mariette, President of Quiksilver, Inc., added “We are definitely pleased with our earnings results, but more importantly, our balance sheet is strong. Inventories are clearly under control, being down over 20%, and our accounts receivable are healthy and well-managed.”
Mr. McKnight concluded, “Financially and operationally we are solid, our product and design continues to strengthen, our marketing and advertising is among the best in the industry, and evidenced by our performance and bookings trends, we believe the Quiksilver brand is stronger today than it has ever beenn in the Company’s history. We continue to dominate our market and have many growth opportunities ahead of us both here and abroad. Our future is bright and we look forward to further capitalizing on our leadership position in the industry.”
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, Roxy, Raisins, and Radio Fiji labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Roxy Girl, Teenie Wahine and Raisins Girls), men (Quiksilveredition and Fidra) and women (Leilani swimwear), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu, Supernatural Manufacturing 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.