Quiksilver looks to riding much the same wave as PacSun, but with broader appeal beyond the narrow-but deep — teen segment. The company is growing business across all age groups, genders and continents to establish a truly global lifestyle brand with the attitude and style associated with its surf-inspired roots.
ZQK grew its fiscal 2003 first quarter top line by more than 30%, with robust sales across all channels of distribution, and nearly doubled earnings per share.
The company posted sales of $192 million for the fiscal 2003 first quarter ended January 31, 2003, up 31% from the year-ago quarter, while Q1 net income more than doubled to $6.6 million from $3.1 million a year ago. First quarter, fully diluted earnings per share were $0.24 versus $0.13 for the first quarter of fiscal 2002.
Quiksilver CEO Bob McKnight is confident that the company can increase earnings per share by at least 20% this year. Fiscal 2003 EPS should rise to between $1.86 and $1.90 and annual sales are expected to climb about 25% to $890 million. The EPS guidance beats the $1.78 set out in January by First Call.
The company is now tracking the “Americas” as a new geographic segment to describe the U.S. business, as export sales to Canada and Central and South America are included in the numbers.
European net sales increased 38%, when measured in U.S. dollars, to $77.2 million versus Q1.2002 net sales of $56.0 million. As measured in euros, European net sales increased 19% for those same periods. Oil spills in France and Spain are seen as an environmental disaster, but ZQK hasnt seen an impact to the European business as reported by other surf-oriented companies.
The Australian and Asia-Pacific Quiksilver businesses are now in the numbers following the merger last year of the former licensed units into the U.S. company. A-P is expected to represent 10% of annual sales and the company sees wider margins in Japan due to sourcing improvements, but the upside will be offset a bit by increased investment in the total A-P region.
The company is now showing and shipping three seasons instead of four and has consequently been able to get out in front of the fall business a bit earlier.
>>> Interesting that Quiksilver sees good growth still in Department Stores even as the channel softens. They seem to be picking up business in their Silver Edition and Fidro golf product as the Polo, Tommy and Nautica businesses weaken here
>>> I can remember Jim Chick making a commitment to this and other “Sportswear” businesses over 15 years ago and often wonder why others havent followed suit with stronger presentations…
