Quiksilver, Inc. today announced operating results for the first quarter ended January 31, 2005.
Consolidated net revenues for the first quarter of fiscal 2005 increased 34% to $342.9 million as compared to fiscal 2004 first quarter consolidated revenues of $256.1 million. Consolidated net income for the first quarter of fiscal 2005 increased 55% to $14.2 million as compared to $9.2 million in the first quarter of fiscal 2004. First quarter fully diluted earnings per share was $0.23 versus $0.16 for the first quarter of fiscal 2004.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “I am incredibly proud of our company and our ability to consistently execute at the highest level. Financially, our strong results reflect the global demand for our entire portfolio of brands along with the continued improvements in our operating efficiencies. From a merchandise perspective, the tremendous feedback we received at the recent tradeshows speaks to the creativity of our team and our ongoing commitment to bringing the best product to market. Strategically, we are effectively integrating our businesses around the world and creating a superior platform for growth.”
Net revenues in the Americas increased 29% during the first quarter of fiscal 2005 to $159.3 million as compared to fiscal 2004 first quarter revenues of $123.2 million. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 25% during the first quarter of fiscal 2005 to $132.6 million as compared to fiscal 2004 first quarter European net revenues of $106.2 million. As measured in euros, European net revenues increased 16% for those same periods. Asia/Pacific net revenues increased 92% to $50.5 million in the first quarter of fiscal 2005 compared to $26.3 million in the first quarter of fiscal 2004.
Consolidated inventories increased 32% to $236.8 million at January 31, 2005 from $179.3 million at January 31, 2004. Inventories grew 29% in constant dollars. Consolidated trade accounts receivable increased 26% to $252.1 million at January 31, 2005 from $200.6 million at January 31, 2004. Trade account receivable growth was modest compared to the increase in revenues as average days sales outstanding decreased about four days.
Bernard Mariette, President of Quiksilver, Inc., commented, “We are very happy to post strong results for another quarter. The clarity in our mission and the consistency in our execution continue to guide our investments in people and businesses. We are confident that the strength of our brands, our leadership status and our well-defined growth strategy will allow us to continue to deliver excellent financial performance into the future.”
The Company also raised its net revenues and earnings per share guidance for fiscal 2005. The Company now expects fiscal 2005 net revenues to range from $1.48 billion to $1.50 billion and earnings per share to range from $1.62 to $1.65.
Mr. McKnight concluded, “We are extremely pleased with the vibrancy of our brands and the pace of our businesses. We begin the new fiscal year with solid momentum and a heightened level of enthusiasm about our future prospects. Quiksilver has evolved into the premier lifestyle company for the youth culture around the globe and we are committed to further building on our powerful position in the market.”
Quiksilver designs, produces and distributes clothing, accessories and related products for young-minded people and develops brands that represent a casual lifestyle-driven from a boardriding heritage. Quiksilver's authenticity is evident in its innovative products, events and retail environments across the globe.
Quiksilver's primary focus is apparel, footwear and related accessories for young men and young women under the Quiksilver, Roxy, DC Shoes, Raisins, Radio Fiji and Island Soul labels. Quiksilver also manufactures apparel, footwear and related accessories for boys (Quiksilver Boys and Hawk Clothing), girls (Roxy Girl, Teenie Wahine and Raisins Girls), men (Quiksilveredition and Fidra) and women (Leilani swimwear), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu, DC Shoes, Roxy and Bent Metal labels. Quiksilver's products are sold throughout the world, primarily in surf shops, skate shops and other specialty stores that provide an authentic retail experience for our customers.
Safe Harbor Language
This Press Release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver's SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled “Forward Looking Statements” in Quiksilver's Annual Report on Form 10-K.