• Net income grew 21.1% to US$12.6m
  • Sales grew 2% to $512.4m 

US surfwear brand Quiksilver posted an increase in third-quarter net income on the back of rising sales in the Asia Pacific and Americas regions.

The company recorded a 21.1% increase in net income to reach $12.6m over the quarter ended 31 July.

Sales grew 2% to $512.4m, or were up 8% in constant currency. Revenue in the Americas increased 10% to $286.1m, while Asia Pacific revenue increased 9% to $71.6m. However, European revenue declined 13% to $154.1m, but was up "modestly" in constant currency.

Gross margin declined to 49.5% from 50.7%, which it attributed to higher levels of discounting and unfavourable currency rate comparisons in Europe.

"From a growth standpoint, our business performed admirably. DC posted sales growth of 16% and e-commerce sales more than doubled," said chairman, president and CEO Robert McKnight.

"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 roll-out 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."