Quiksilver Q2 profit rises 19% on core business

US: Quiksilver Q2 profit rises 19% on core business

By just-style.com | 6 June 2008

Boardsport-led lifestyle brand Quiksilver saw second quarter net income rise 19.4% as sales from its core business increased 15% on last year.

For the three months to 30 April, the company's net revenues were US$596.3m, with net income up to $38.7m.

The results excluded the figures of Quiksilver's golf equipment arm, sold in December, and its Rossignol ski division, which it is in the process of selling.

Quiksilver classified both as discontinued operations, incurring a non-cash pre-tax charge of $240.2m in the process.

Net revenues in the Americas were up 5% to $247.6m, while European net revenues soared 23% to $284.5m. In Asia-Pacific, sales were up 23% to $62.5m.

Robert McKnight Jr, chairman, CEO and president of Quiksilver, said he was pleased with the results.

"As we separate the results of the Rossignol Group from those of our continuing core businesses, it becomes increasingly clear that our broadly diversified mix of brands, products, geographies and distribution channels positions us well in challenging economic climates, such as the one we all face today," he added.

"As the boardsport lifestyle continues to expand around the world, our results demonstrate that the quality, style and authenticity of our brands have more influence than ever on the buying decisions of our customers."

Quiksilver expects full-year revenue growth of about 10%, generating earnings per share slightly below last year's figure of $0.90.

Sectors: Apparel, Finance

Companies: Quiksilver