Gross margin was 49.5% of net revenues compared with 50.7% in the prior year period, primarily driven by lower gross margins in Europe due to higher levels of discounting and unfavorable currency exchange rate comparisons.
SG&A increased to $225.8 million compared with $221.2 million, up 10 basis points as a percentage of sales, primarily driven by $3.9 million of costs associated with staff eliminations and restructuring.
Pro-forma Adjusted EBITDA was $51.2 million compared with $52.7 million, with the decline largely driven by the contraction in gross margin mentioned above.
Net income was $12.6 million, or $0.07 per diluted share, compared with net income of $10.4 million, or $0.06 per diluted share.Pro-forma income, which excludes $3.8 million of net after-tax restructuring charges and asset impairments, was $16.4 million, or $0.09 per diluted share, compared with pro-forma income of $10.4 million, or $0.06 per diluted share. Fiscal 2012 Q3 Revenue Highlights: Revenues increased (in constant currency) across all three brands, all three regions, and all three distribution channels compared with the third quarter of fiscal 2011. Strong revenue growth continued in the company’s emerging markets, including Brazil, Russia and Indonesia. Brands (constant currency):
- Quiksilver was up 3.5% to $193.5 million;
- Roxy increased 4.6% to $131.8 million; and,
- DC was up 15.5% to $168.2 million.
- Wholesale business was up 4.5% to $370.0 million;
- Retail was up 6.8% to $119.3 million. Third quarter same store sales in company-owned retail stores grew 4.0% on a global basis; and,
- E-commerce was up 180.2% to $23.2 million.