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Quiksilver, Inc. (NYSE:ZQK) today announced operating results for the third fiscal quarter ended July 31, 2012.
“During the quarter, we continued to make solid progress on our three long-term initiatives, which are strengthening our brands, expanding our business and driving operational efficiencies throughout the business,” said Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc.
“From a brand perspective, we launched integrated social media marketing campaigns, hosted the premier skate tour in the industry and had outstanding team-rider success in surfing,” continued McKnight. “From a growth standpoint, our business performed admirably. DC posted sales growth of 16% and e-commerce sales more than doubled. European sales grew modestly, which positions us well compared with our peers. In the area of operational efficiencies, we made tough decisions during the quarter regarding SG&A, including effecting staff eliminations in all our regions, as well as reductions in other operating expenses. Also, after implementing our new ERP system in the Americas in the second quarter, we kicked off our European ERP rollout in the third quarter, which will drive efficiencies by helping to integrate our operations and standardize our business processes globally. I applaud our team’s tenacity during this time of transformation and believe we are focusing on the right actions to strengthen our business and drive sustainable value.”
Fiscal Third Quarter Review:
All comparisons are between the third quarter of fiscal 2012 and the third quarter of fiscal 2011. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables.
Revenues grew 2% to $512.4 million compared with $503.3 million, and grew 8%, or $38 million, in constant currency.
Americas revenue increased 10% to $286.1 million from $260.2 million, and was up 12% in constant currency.
Europe revenue decreased 13% to $154.1 million from $176.4 million, and was up modestly in constant currency.
Asia Pacific revenue increased 9% to $71.6 million from $65.5 million, and was up 13% in constant currency.
Please refer to the accompanying tables to better understand the impact of foreign currency exchange rates on revenue trends.