Quiksilver, Inc. announced consolidated revenues for the fiscal third quarter of fiscal 2003 ended July 31, 2003 increased 44% to $251.5 million as compared to fiscal 2002 third quarter consolidated revenues of $175.0 million.
Consolidated net income for the third quarter of fiscal 2003 was $11.9 million as compared to $8.8 million. Third quarter, fully diluted earnings per share was $0.21 versus $0.18 for the third quarter of fiscal 2002.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, commented, “We were pleased with our results for the quarter which were primarily driven by a strong increase in sales and significant gross margin expansion. Our financial performance reflects the vitality of our brands and an ongoing commitment to develop the best product in the marketplace.”
Revenues in the Americas increased 28% during the third quarter of fiscal 2003 to $137.4 million as compared to fiscal 2002 third quarter revenues of $107.3 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 41% during the third quarter of fiscal 2003 to $93.9 million as compared to fiscal 2002 third quarter European revenues of $66.6 million. As measured in euros, European revenues increased 16% for those same periods. Excluding the newly added Asia/Pacific division and in constant dollars, overall Holiday bookings increased 11% over the previous year.
Mr. McKnight continued, “Holiday bookings were solid, up 11% on a consolidated basis. In the Americas, we were up 9%, and in Europe, we were up 14%. And the initial feedback on next year's product is also good. We've just come off of a very encouraging round of trade shows, and the response from both our sales force and our customers has been excellent regarding our Spring lines.”
Consolidated inventories increased 71% to $159.5 million at July 31, 2003 from $93.3 million at July 31, 2002. Consolidated trade accounts receivable increased 32% to $217.9 million at July 31, 2003 from $165.7 million at July 31, 2002. Inventories in the Americas and Europe grew 45% on a constant dollar basis with the new Asia/Pacific division accounting for the balance of the growth. Accounts receivable grew more slowly than sales as average days sales outstanding decreased about seven days.
Bernard Mariette, President of Quiksilver Inc., commented, “I truly believe that our company has never been stronger in terms of design, merchandising, marketing and execution. Our solid performance is the result of continued market share gains, which reflects our ability to deliver fresh, trend-right products that are embraced by our core customers around the world. We move forward with positive momentum and remain focused on executing a strategy that will allow us to continue to deliver superior performance.”
Mr. McKnight concluded, “Our ability to continue to post strong results despite the ongoing challenges in the retail environment is a testament to our diversified portfolio of leading lifestyle brands, disciplined execution of our key strategies and ongoing dedication to becoming the dominant lifestyle company for the global youth market. Our multi-brand, multi-channel, multi-country approach to our business sets us apart from our competition and offers us significant growth opportunities into the future.”
Three Months Ended
July 31,
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In thousands, except per share amounts 2003 2002
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Revenues $ 251,498 $ 175,044
Cost of goods sold 144,369 104,691
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Gross profit 107,129 70,353
Selling, general and administrative expense 85,684 53,835
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Operating income 21,445 16,518
Interest expense 2,232 2,039
Foreign currency loss 801 234
Other expense 146 108
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Income before provision for income taxes 18,266 14,137
Provision for income taxes 6,348 5,292
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Net income $ 11,918 $ 8,845
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Net income per share $ 0.22 $ 0.19
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Net income per share, assuming dilution $ 0.21 $ 0.18
