Quiksilver reaffirmed its guidance for the fourth quarter and fiscal year ending October 31, 2005. The Company also updated its outlook for the fiscal year ending October 31, 2006.
For the fourth quarter of fiscal 2005, the Company continues to expect revenues between $582 million and $592 million and diluted earnings per share of approximately 26 cents to 27 cents, compared to 20 cents for the fourth quarter of fiscal 2004. For fiscal 2005, the Company reaffirmed its outlook of revenues between $1.73 billion and $1.74 billion and diluted earnings per share of 86 cents to 87 cents, compared to 68 cents reported in fiscal 2004. For fiscal 2006, the Company expects to report revenues ranging from $2.25 billion and $2.27 billion and diluted earnings per share of 87 cents to 88 cents.
The Company noted that its financial expectations for fiscal 2005 represent sales and earnings increases of over 35% and 25%, respectively. Without Rossignol, revenues are expected to increase approximately 20%. Some factors are leading the Company to moderate its current view on fiscal 2006. First, the Company has taken aggressive steps to more rapidly integrate Rossignol while other components will be completed and announced later in 2006. Second, the strengthening dollar and higher than anticipated interest expense are also expected to impact results. Taken together, the Company now believes that fiscal 2006 earnings will be up slightly compared to fiscal 2005.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “The power of our brands and organization, both with regard to Quiksilver and through the newly-acquired Rossignol business, is formidable and has resulted in the creation of the world's preeminent outdoor sports company. We now see opportunities to move even more purposefully to integrate our companies. Our vision for the future remains clear, and we are confident in our ability to drive our company forward and to bring substantial long-term value to our shareholders.”
Bernard Mariette, President of Quiksilver, Inc., stated, “We've now completed our planning for fiscal 2006, and Rossignol and Cleveland are being rapidly integrated into our Company around the world. The willingness of the Rossignol team to embrace our vision has allowed us to accelerate some components of the integration plan and to delay others, and our three year plan is in line with previous expectations.”
