HUNTINGTON BEACH, Calif.–Sept. 9, 1999–RobertB. McKnight, Jr., chairman of the board and chief executive officer ofQuiksilver Inc. (NYSE:ZQK), Thursday announced operating results forthe third quarter and nine months ended July 31, 1999.
Consolidated net sales for the third quarter of fiscal 1999increased 34.4% to $105,160,000 as compared with fiscal 1998third-quarter consolidated net sales of $78,265,000.
Consolidated net income for the third quarter of fiscal 1999increased 37.9% to $5,623,000, or $0.24 per share on a diluted basis,as compared with $4,078,000, or $0.18 per share on a diluted basis forthe third quarter of fiscal 1998.
Basic earnings per share was $0.25 for the current quartercompared with $0.19 for the third quarter of fiscal 1998. Domestic netsales during the third quarter of fiscal 1999 increased 38.9% to$69,411,000 as compared with fiscal 1998 third-quarter domestic netsales of $49,981,000.
European net sales during the third quarter of fiscal 1999increased 26.4% to $35,749,000 as compared with fiscal 1998third-quarter European net sales of $28,284,000. European net sales asmeasured in French Francs for those same periods increased 32.5%. (Allreferences to shares and per share amounts reflect a three-for-twostock split effected April 23, 1999.)
Consolidated net sales for the first nine months of fiscal 1999increased 50.8% to $319,235,000 as compared with fiscal 1998first-nine-months consolidated net sales of $211,708,000.
Consolidated net income for the first nine months of fiscal 1999increased 60.7% to $18,719,000, or $0.80 per share on a diluted basis,as compared with $11,649,000, or $0.54 per share on a diluted basis,for the first nine months of fiscal 1998.
Basic earnings per share was $0.85 for the first nine monthscompared with $0.55 for the first nine months of fiscal 1998. Domesticnet sales during the first nine months of fiscal 1999 increased 54.8%to $204,649,000 as compared with fiscal 1998 first-nine-monthsdomestic net sales of $132,192,000.
European net sales during the first nine months of fiscal 1999increased 44.1% to $114,586,000 as compared with fiscal 1998 firstnine months European net sales of $79,516,000. European net sales asmeasured in French Francs for those same periods increased 43.2%.
Consolidated inventories increased 3.7% to $73,212,000 at July31, 1999, from $70,575,000 at Oct. 31, 1998, while increasing 11.3%compared with July 31, 1998. Inventory turnover increased during thequarter in comparison to previous periods.
Consolidated trade accounts receivable increased 20.6% to$94,523,000 at July 31, 1999, from $78,390,000 at Oct. 31, 1998, whileincreasing 55.6% compared with July 31, 1998. These increases inaccounts receivable are due primarily to higher sales in comparison tothe previous year, and to a lesser extent, a higher proportion ofshipments occurring in the latter half of the quarter.
McKnight commented, “We are very pleased with our results forthe third quarter, and we are on track with our corporate plans forthe second half of the year. Inventories and receivables are atacceptable levels and are in line with our current plans.
“We are currently in our Spring trade show season, both here andin Europe, and we just returned from MAGIC last week where our newproduct lines were well received. The reaction to our Spring producthas been excellent across the board, and current sell-through reportsare strong. Our designers have proven that they are in tune with thedemands of the marketplace.”
McKnight continued, “During the quarter, we opened 5 BoardridersClubs and 218 Quiksvilles, and we successfully moved our corporateheadquarters to Huntington Beach in June. The first deliveries ofQuikJean/RoxyJean were made during the quarter in conjunction with ourFall marketing campaign, and the company’s Roxy division was awardedthe California Mart’s Fashion Performance Award.”
Quiksilver Inc. and its wholly-owned subsidiaries design, arrangefor the manufacture of, and distribute casual sportswear,snowboardwear and swimwear primarily for young men, boys and youngwomen under the Quiksilver, Quiksilver Roxy, Raisins, Radio Fiji,Leilani, and QS Silver Edition labels, and manufacture snowboards,snowboard boots and bindings under the Lib Tech, Gnu, Arcane and BentMetal labels.
The company selectively distributes its products in surf shops,snowboard shops, specialty stores and department stores in the UnitedStates, Europe and Japan.