US: Quiksilver swings to Q3 loss, to launch women's wear line
Charges relating to the planned acquisition of the minority stake in its Roger Cleveland Golf Company subsidiary pushed Quiksilver Inc to a third quarter loss, but the company reiterated its full year outlook and said it is developing a year-round line of clothing for women aged 18 to 24.
In the three months ended 31 July, the Huntington Beach, California-based marketer of surf, skate, board and other active brands registered a net loss of $7.9m or $0.06 per share. In the year-ago quarter, Quiksilver posted a net income of $5.3m or $0.04 per share.
Without the $10.5m costs of the Roger Cleveland Golf transaction, the company said it earned $0.02 per share, in line with its expectations.
Revenues continued to improve, rising 17% to $612.8m from $525.9m. Revenues rose 21% in the Americas to $335.0m, 11% in Europe to $212.7m, and 13% in Asia/Pacific to $63.9m in US dollar terms.
Inventories rose 6% to $545.5m from $516.4m.
Robert B McKnight Jr, chairman of the board and chief executive officer, said the company's apparel and footwear and related businesses "performed at a high level during the third quarter with gains coming from each region and brand in both our wholesale and retail businesses."
Separately the company, whose brands include Quiksilver, Roxy, and DC, said it is launching a new Quiksilver women's wear brand for autumn 2008.
The line, called 'Quiksilver,' is positioned at the better-best end of the juniors' spectrum and will be sold in the company's own retail stores as well as specialty stores, better department stores and select surf shops in the Americas, Europe and the Asia-Pacific region.
"We are confident that this will open new points of distribution and bring incremental business to the company while augmenting, rather than competing with existing businesses," McKnight said.
"The product will be linked to the Quiksilver young men's brand but the overall feel will be very feminine, with an end result that is casual but chic," added president Bernard Mariette.
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