This Day On The Street
Continue to site
ADVERTISEMENT
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 Management Discusses Q2 2012 Results - Earnings Call Transcript

Let me turn now to the high level financial highlights for the second quarter. Revenues in Q2 were up 5% when compared to last year in constant currency reflecting that we have broad appeal for all 3 of our brands, Quiksilver, Roxy and DC, solid growth in our emerging markets, revenue growth and positive comparable store sales in each of our geographic regions and continued strong growth in our e-commerce channel.

Gross margins declined to 49.2% of sales. Our 2012 internal plan anticipated a number of headwinds that would adversely impact our Q2 year-over-year gross margin comparison. Our actual margins were, however, somewhat below our plan. SG&A of $224 million was up approximately $7 million compared to the second quarter a year ago. The resulting pro forma adjusted EBITDA in the second quarter was $39 million, which, as we anticipated, was well below last year's second quarter results.

Rich will take you through a more detailed look at our financial performance in a few moments. But first, I'd like to provide a brief update on our 3 flagship brands. Let's start with Quiksilver.

Revenues in Q2 for the Quiksilver brand grew 4% compared to the same quarter a year ago in constant currency. This growth was fueled by strong sales of warmer weather goods including boardshorts, Amphibians, walk shorts, hats and tank tops as temperatures began to rise in connection with the arrival of spring. During the quarter, we stepped up our collaborations with a major North American sports links, product for additional NFL teams, shipped into wholesale marketplace, and sell-through was exceptionally strong in tourist destinations. NBA boardshorts will follow with some teams introduced this summer and a deal with the NHL has been recently signed, and Canadian NHL team boardshorts will be shipped in Canada this fall. We're also expanding the program into Australian football leagues. These collaborations allow Quiksilver to reach new customers, new accounts and new channels of distribution while delivering authentic products that are designed using already existing resources.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,122.20 -405.83 -2.46%
S&P 500 1,927.84 -44.34 -2.25%
NASDAQ 4,683.2210 -93.2870 -1.95%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs