Action sports and surfwear maker Quiksilver Inc has beaten expectations for its third-quarter earnings after careful control of costs helped offset lower sales.
The Huntington Beach, California-based company, whose brands include Quiksilver, Roxy, DC, Lib Tech and Hawk, reported a profit of $8.3m or $0.06 per share, compared with $1.3m or a penny per share the year before. Adjusted earnings rose to $0.08 per share, up from $0.03 per share last time.
Revenue fell 12% to $441.5m in the three months to 31 July, compared with year-ago sales of $501.39m.
Revenues in the Americas fell 9% to $234.6m, European sales dropped 20% to $151.7m, and Asia/Pacific revenues slipped 1% to $54.5m.
“Our team executed well in an economic environment that continues to present significant challenges around the world,” commented Robert McKnight Jr, chairman, CEO and president.
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By GlobalDataGross margin improved 560 basis points to 52.3% compared to 46.7% in the third quarter of last year.
In a separate announcement, the company said it had amended and extended its asset-based line of credit in the Americas with Bank of America Merrill Lynch and GE Capital under substantially better terms.
Looking ahead it expects fourth quarter revenues to be down in the mid-teens on a percentage basis compared to the same quarter a year ago, with earnings per share in the mid-single-digit cents range.
