This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Quiksilver, Inc. Reports Second Quarter Fiscal 2012 Financial Results

Net revenues in the Americas increased 5% during the second quarter of fiscal 2012 to $221.0 million from $210.7 million in the second quarter of fiscal 2011. European net revenues decreased 6% during the second quarter of fiscal 2012 to $195.6 million from $206.9 million in the second quarter of fiscal 2011, and increased modestly in constant currency terms. Asia/Pacific net revenues increased 27% during the second quarter of fiscal 2012 to $74.0 million from $58.1 million in the second quarter of fiscal 2011, and were up 24% in constant currency. The Asia/Pacific revenue growth was significantly driven by improved performance in Japan where revenues in the second quarter of fiscal 2011 were substantially impacted by the earthquake and related tsunamis in the region. Please refer to the accompanying tables to better understand the impact of foreign currency exchange rates on revenue trends in the European and Asia/Pacific segments.

Gross margin in the second quarter was 49.2% of net revenues compared to 54.8% of net revenues in the second quarter of fiscal 2011. The gross margin contraction was principally driven by higher levels of clearance business, the timing of certain royalties, higher input costs, and the impact of foreign currency exchange rates. The company earned pro-forma Adjusted EBITDA of $39.4 million in the quarter compared to $62.1 million in the second quarter of fiscal 2011, with the decline largely driven by the contraction in gross margin mentioned above.

Q2 Highlights
  • Revenues for each of the company’s three major brands – Quiksilver, Roxy and DC – grew in the second quarter compared to the same quarter a year ago.
  • Second quarter same store sales in company-owned retail stores grew 6% on a global basis and were positive in each region.
  • Revenues in the company’s Americas and Asia/Pacific regions grew in all three channels of distribution including wholesale, company-owned retail and E-Commerce.
  • Quiksilver’s strong online sales momentum continued as the company’s second quarter E-Commerce revenues again demonstrated solid growth compared to the same quarter a year ago.
  • Continuing the company’s investment in emerging markets, on May 1 st Quiksilver expanded its majority ownership in its Brazilian entity to 80%. The company’s business in Brazil continues to demonstrate strong growth and solid profitability while generating annual revenues of greater than $50 million.
  • DC continues to build its strong online following with nearly 9 million Facebook fans who collectively generated over 182 million impressions on the DC brand Facebook page during Q2. In addition, DC’s official YouTube film channel generated nearly 14 million views in the quarter.
  • With two events remaining in the 2012 Association of Surfing Professionals season, Quiksilver team rider and brand ambassador Stephanie Gilmore, a four-time World Champion, and Roxy team rider Sally Fitzgibbons, world title runner-up the past two years, are locked in a tight battle for the women’s world surfing title after both have won two events during the current campaign. The next event on this year’s schedule is the Roxy Pro France in July.
  • The Street League Skateboarding DC Pro Tour kicked off its 2012 season at the Sprint Center in Kansas City. 17-year-old phenom Nyjah Huston, the newest addition to the DC skate team, won the event in a dramatic duel with Bastien Salabanzi, the tour’s first European qualifier. The next stop on the DC Pro Tour is at the Citizens Business Bank Arena in Ontario, California, June 15-16.

About Quiksilver:

Quiksilver, Inc. (NYSE:ZQK) is one of the world’s leading outdoor sports lifestyle companies. Quiksilver designs, produces and distributes a diversified mix of branded apparel, footwear and accessories. The company’s apparel and footwear brands, inspired by the passion for outdoor action sports, represent a casual lifestyle for young-minded people who connect with its boardriding culture and heritage. The company’s Quiksilver, Roxy, DC, Lib Tech and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding. The company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company-owned retail stores, other specialty stores, select department stores and over the internet. Quiksilver’s corporate headquarters are in Huntington Beach, California.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.01 0.00%
FB $99.75 0.00%
GOOG $682.74 0.00%
TSLA $147.99 0.00%
YHOO $27.05 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs