Quiksilver Inc.’s (NYSE: ZQK) shares jumped today after the clothing company reported a third-quarter profit that topped estimates:
- Americas revenue increased 10% to $286.1 million from $260.2 million, and was up 12% in constant currency.
- Europe revenue decreased 13% to $154.1 million from $176.4 million, and was up modestly in constant currency.
- Asia Pacific revenue increased 9% to $71.6 million from $65.5 million, and was up 13% in constant currency.
Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented:
During the quarter, we continued to make solid progress on our three long-term initiatives, which are strengthening our brands, expanding our business and driving operational efficiencies throughout the business.
From a brand perspective, we launched integrated social media marketing campaigns, hosted the premier skate tour in the industry and had outstanding team-rider success in surfing.
From a growth standpoint, our business performed admirably. DC posted sales growth of 16% and e-commerce sales more than doubled. European sales grew modestly, which positions us well compared with our peers. In the area of operational efficiencies, we made tough decisions during the quarter regarding SG&A, including effecting staff eliminations in all our regions, as well as reductions in other operating expenses. Also, after implementing our new ERP system in the Americas in the second quarter, we kicked off our European ERP rollout in the third quarter, which will drive efficiencies by helping to integrate our operations and standardize our business processes globally. I applaud our team’s tenacity during this time of transformation and believe we are focusing on the right actions to strengthen our business and drive sustainable value.
- Quiksilver reported on September 6th that it earned $12.6 million, or 7 cents per share, for the quarter that ended July 31 compared with $10.4 million, or 6 cents per share, in the same quarter last year.
- Quiksilver earned 9 cents per share after adjustments for restructuring charges and other special items, presenting 5 cents per share over expectations.
- Revenue increased 2 percent to $512.4 million on gains across its brands vs of the $528 million anticipated from the analysts.
ZQK shares gained over 20% on Friday’s trading session on the 4fold of its 10day average volume. Keep in mind that Quiksilver continues to face a tough economy and had to do more discounting, particularly in Europe on the weakening euro.