HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–December 20, 2000–
–Fourth Quarter Earnings Per Share Increase 24%–
–Spring Backlog Increases 22%–
Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the fourth quarter and full year ended October 31, 2000.
Consolidated net sales for the fourth quarter of fiscal 2000 increased 21.8% to $151,610,000 as compared to fiscal 1999 fourth quarter consolidated net sales of $124,499,000. Consolidated net income for the fourth quarter of fiscal 2000 rose 24.3% to $9,778,000 as compared to $7,865,000, and diluted earnings per share increased 23.5% to $0.42 versus $0.34 for the fourth quarter of fiscal 1999.
Consolidated net sales for the full year of fiscal 2000 increased 16.2% to $515,689,000 as compared to fiscal 1999 full year consolidated net sales of $443,734,000. Consolidated net income for the full year of fiscal 2000 rose 19.8% to $31,836,000 as compared to $26,584,000 in fiscal 1999, and diluted earnings per share for the full year increased 20.2% to $1.37 versus $1.14 for the full year of fiscal 1999.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “Given the challenging retail and foreign currency environment, we are very pleased with our results for the fourth quarter, another quarter of double digit earnings growth. We are especially pleased with the strong pace of our bookings for the Spring season and the excellent results we are seeing with Roxy.”
Domestic net sales during the fourth quarter of fiscal 2000 increased 13.1% to $96,925,000 as compared to fiscal 1999 fourth quarter domestic net sales of $85,714,000. As measured in French Francs, European net sales increased 70.7% for those same periods. As measured in U.S. dollars and reported in the financial statements, European net sales increased 41.0% during the fourth quarter of fiscal 2000 to $54,685,000 as compared to fiscal 1999 fourth quarter European net sales of $38,785,000.
Mr. McKnight continued, “This was not only another record year for Quiksilver financially, but we also accomplished a number of important strategic objectives. First and foremost, we completed the acquisition of Quiksilver International and truly became a global company. We also launched two new important brands, Hawk and Alex Goes, which furthers our strategy of diversification. We also continued to boost our retail presence by opening nine company-owned stores during the year. We are confident that these strategic initiatives, as well as a continued focus on targeted core advertising and event sponsorship are laying the foundations for the sustained long-term growth of our business.”
Domestic net sales for the full year of fiscal 2000 increased 14.7% to $333,075,000 as compared to fiscal 1999 domestic net sales of $290,363,000. As measured in French Francs, European net sales increased 37.8% for the full year. As measured in U.S. dollars and reported in the financial statements, European net sales increased 19.l% during the full year of fiscal 2000 to $182,614,000 as compared to fiscal 1999 results of $153,371,000.
Consolidated inventories increased 24.7% to $90,034,000 at October 31, 2000 from $72,207,000 at October 31, 1999, while increasing 8.0% compared to July 31, 2000. Consolidated trade accounts receivable increased 26.7% to $136,394,000 at October 31, 2000 from $107,619,000 at October 31, 1999, while increasing 23.1% compared to July 31, 2000. These increases in accounts receivable are consistent with the increases in sales in the latter half of the 4th quarter, and the level of inventories is consistent with the company’s planned level of Spring season business.
Mr. McKnight further commented, “In spite of the challenging currency environment during the fourth quarter, which is clearly beyond our control, our business is strong. It’s worth noting that currency translation caused us to report earnings that were roughly 10% lower for the full year than they would have been had the Franc remained constant to the U.S. dollar.”
Based on the current foreign exchange rate environment, Quiksilver, Inc. believes growth in consolidated net sales for fiscal 2001 will be in the range of 15% to 20%. Additionally, the company expects diluted earnings per share in the range of $1.50 to $1.56 for the full year in 2001.
Bob McKnight concluded, “While the continuing difficult foreign currency environment continues to impact our business, we remain highly enthusiastic about both the near-term and long-term growth prospects for Quiksilver. We believe the combination of strong Spring bookings and a firm strategic footing underline the true strength of this business. By leveraging our global brand, we are confident that we will continue to deliver strong sales and earnings growth in the years ahead.”
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.