Quiksilver, Inc. has adopted a more cautious outlook for the remainder of this year and next year's early season due to the unseasonably warm winter and poor snow conditions in the U.S. and in Europe. ZQK now expects first quarter fiscal 2007 revenue to be $540 million and diluted EPS to be four cents compared to previously expected revenues of approximately $550 million to $555 million with diluted EPS of nine cents for the period ending January 31.
Quik also revised numbers for this year's fourth quarter and full-year due to carry-over effects. The company now expects fourth quarter revenues to range from $760 million to $770 million and diluted earnings per share to range between 54 cents and 55 cents for the period ending October 31. This estimate is down from Q4 guidance of $805 million to $815 million and Q4 EPS of 62 cents to 64 cents.
For fiscal 2007, Quik now sees revenues of $2.43 billion to $2.46 billion with diluted earnings per share of 75 cents to 78 cents. Previously, Quik expected revenue of $2.5 billion and diluted EPS of 88 cents to 92 cents.
Just hours after Quiksilver issued their warning, K2 Inc. announced that they would be raising their expectations for fiscal 2006. The company now expects adjusted diluted earnings per share for the full year to be in the range of 87 cents to 88 cents, exceeding K2's previous guidance of 83 cents to 86 cents.
This upward adjustment was said to be due to the “diversity of its global sporting goods business and capitalize on the strength of its portfolio.” K2 also expects winter sports sales to be slow for the fiscal fourth quarter due to the poor snow conditions.
