Quiksilver's Fiscal 3Q Meets Analyst Expectations

HUNTINGTON BEACH, Calif. (AP) — Clothing and sporting goods maker Quiksilver Inc. said Thursday its fiscal third-quarter profit dropped 53 percent as a drop in revenue offset its effort to cut costs.

For the three months that ended July 31, the company's net income was $1.4 million, or 1 cent per share, compared with $2.9 million, or 2 cents per share, a year earlier.

Net income from continuing operations, excluding one-time items, was 3 cents per share, exactly what analysts polled by Thomson Reuters expected on average.

Sales fell to $501.4 million from $564.9 million but were better than the $480.2 million Wall Street anticipated.

Selling, general and administrative expenses decreased to $211.8 million from $232.1 million, and the cost of goods sold fell to $267 million from $280 million.

"The retail environment remains very challenging, and we will continue to adapt our cost structure to this trend as we go forward," CEO Robert B. McKnight Jr. said.

In trading after hours Thursday, Quiksilver's shares fell 32 cents, or 11 percent, to $2.54.