9/9/98
Edited by Robyn Hakes
(Press Release) Robert B. McKnight Jr., chairman of the
board and chief executive officer of Quiksilver Inc. ZQK , announced operating results for the third quarter and nine months ended July 31, 1998.
Consolidated net sales for the third quarter of fiscal 1998 increased 33.7
percent to 78.265 million dollars as compared with fiscal 1997 third-quarter consolidated net sales of 58.541 million dollars. Consolidated net income for the third quarter of fiscal 1998 increased 37.2 percent to 4.078 million dollars or $0.28 per
share on a diluted basis, as compared with 2.972 million dollars or $0.21 per share on a diluted basis, for the third quarter of fiscal 1997.
Basic earnings per share were $0.29 for the current quarter compared with
$0.21 for the third quarter of fiscal 1997. Domestic net sales during the third quarter of fiscal 1998 increased 30.8 percent to 49.981 million dollars as compared with fiscal 1997 third-quarter domestic net sales of 38.216 million dollars.
European net sales during the third quarter of fiscal 1998 increased 39.2
percent to 28.284 million dollars as compared with fiscal 1997 third-quarter European net sales of 20.325 million dollars. European net sales as measured in French Francs for those same periods increased 41.8 percent. (All references to shares and per share amounts reflect a two-for-one stock split effected April 24, 1998).
Consolidated net sales for the first nine months of fiscal 1998 increased
28.1 percent to 211.708 million dollars as compared with fiscal 1997 first nine months consolidated net sales of 165.266 million dollars. Consolidated net income for the first nine months of fiscal 1998 increased 23.0 percent to 11.649 million dollars or $0.80 per share on a diluted basis, as compared with 9.471 million dollars or $0.67 per share on a diluted basis, for the first nine months of fiscal 1997.
Basic earnings per share were $0.83 for the first nine months compared with
$0.68 for the first nine months of fiscal 1997. Domestic net sales during the first nine months of fiscal 1998 increased 23.8 percent to 132.192 million dollars as compared with fiscal 1997 first nine months domestic net sales of 106.815 million dollars.
European net sales during the first nine months of fiscal 1998 increased
36.0 percent to 79.516 million dollars as compared with fiscal 1997 first nine months European net sales of 58.451 million dollars.
European net sales as measured in French Francs for those same periods increased 45.5 percent.
Consolidated inventories increased 36.0 percent to 65.797 million dollars at
July 31, 1998, from 48.372 million dollars at October 31, 1997. This increase in inventory levels is a result of seasonal factors and
sales growth.
Consolidated trade accounts receivable increased 11.1 percent to 60.752
million dollars at July 31, 1998, from 54.668 at October 31, 1997. This increase in accounts receivable is somewhat less than the increase in net sales comparing the current quarter to the fourth quarter of last year.
McKnight said: "Our product continues to sell exceptionally well at retail,
both domestically and in Europe. We are also very pleased with our orders for the coming holiday season. Overall, company wide bookings for this period are up over 40 percent. Domestic men's holiday bookings are up over 30 percent and our domestic women's bookings have doubled for this same holiday period when compared to last year. "We are also pleased to announce the successful opening of our Quiksilver flagship store in the Soho district of New York City. In addition, we plan to open two stores in Paris; one on the Champs Elysees in November and the second on the Rue de Rivoli in January."
McKnight adds, "The reaction to our spring/summer lines in Europe has been
terrific, and we have just returned from the M.A.G.I.C. trade show in Las Vegas where our domestic spring product was exceptionally well received."
Quiksilver and its wholly owned subsidiaries design, arrange for the
manufacture of and distribute casual sportswear, snowboardwear and swimwear primarily for young men, boys and young women 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 Bent Metal labels.
The company selectively distributes its products in surf shops, snowboard
shops, specialty stores and department stores in the United States, Europe and Japan.
Back
to Business Main