Quiksilver's net revenues for the fiscal first quarter ended January 31 increased 33.6% to $342.9 million, from $256.1 million in the year-ago quarter. Excluding the addition of DC Shoes in the quarter, revenues increased approximately 22.6% for the period. FX rate benefits added about 5% of the revenue growth as well. On a like-for-like basis, revenues grew 17.6% in fiscal Q1.
Net revenues in the Americas increased 29.3% in Q1 to $159.3 million. The mens business was up 31% and womens sales in the region rose 28% for the period. European revenues increased 24.9% to $132.6 million, but grew 16% when measured in Euros. Womens again outpaced mens sales in Europe in Q1, growing 34% for the period, while mens rose 22%. Asia Pacific revenues jumped 92.0% to $50.5 million and grew 85% in constant currency.
Gross margins in the Americas declined 130 basis points to 39.2% of sales, while Europe margins improved 12 basis points to 49.5% and Asia Pacific GM rose 140 basis points to 48.1% of sales in the first quarter. The contraction in GM in the Americas may well be due to the increase in footwear as a percent of sales due to the inclusion of DC Shoes to the mix, a reality that may soon have more effect on Europe margins as Quik moves to bring more of that business in-house from its current distributorships.
Operating income in the Americas was down 14.5% for the period to $8.7 million, while Europes operating income increased 16.2% to $15.0 million and Asia Pacific profits jumped more than 500% for the period.
Consolidated net income increased 54.9% to $14.2 million, or 23 cents per diluted share, compared to $9.2 million, or 16 cents per diluted share, in fiscal Q1 2004.
Consolidated inventories increased 32% to $236.8 million at year-end, or rose 29% in constant dollars.
