Quik reported numbers for the quarter ending October 31, 2009 today and they were down, but not as far as analysts were expecting, apparently. Analysts figured Quik would be down $6.4 million according to a story in the Orange County Business Journal. Consolidated net revenues for the quarter were down 11% and for fiscal 2009 were down 13% to $1.98 billion.
Bob McKnight’s spin on the whole thing?
“Our fourth quarter was very challenging, as retailers bought conservatively for the holiday season and traffic in our own retail stores remained sluggish through October. In that context, we were pleased that our results were somewhat better than we expected. We also accomplished a number of important business objectives in the quarter. We reinforced our product leadership, maintained and even expanded our leading market share positions and staged a number of major events further connecting our brands with the broad group of consumers that either participate in or are inspired by action sports.”
Follow the jump for the entire press release.
Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
— 4thQuarter2009Pro-FormaIncomefromContinuingOperationsof$0.02pershare
— 4thQuarter2009LossfromContinuingOperationsof$0.12pershare
— Fiscal2009Pro-FormaIncomefromContinuingOperationsof$0.04pershare
— Fiscal2009LossfromContinuingOperationsof$0.58pershare
Huntington Beach, California, December 17, 2009–Quiksilver, Inc. (NYSE: ZQK) today announced operating results for the fourth quarter and full year ended October 31, 2009. Consolidated net revenues for the fourth quarter of fiscal 2009 decreased 11% to $538.7 million compared to $606.9 million in the fourth quarter of fiscal 2008. Fourth quarter pro-forma income from continuing operations was $3.2 million or $0.02 per share, and excludes $22.3 million in restructuring and retail store impairment charges, partially offset by a tax adjustment of $3.3 million. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables. Including these charges, the loss from continuing operations for the fourth quarter was $15.7 million or $0.12 per share, compared to a loss of $13.8 million or $0.11 per share in the same quarter a year ago. Net revenues and income from continuing operations for all periods exclude the results of the Rossignol wintersports and golf equipment businesses which are reported as discontinued operations.
Consolidated net revenues for the full year of fiscal 2009 decreased 13% to $1.98 billion compared to $2.26 billion in fiscal 2008. Full year pro-forma income from continuing operations for fiscal 2009, adjusted to exclude restructuring and impairment charges and tax credits, was $4.6 million or $0.04 per share. For the full year, the loss from continuing operations for fiscal 2009, including these charges and credits, was $73.2 million or $0.58 per share, compared to income of $65.5 million or $0.51 per share in fiscal 2008. A reconciliation of GAAP results to pro- forma results is provided in the accompanying tables.
Robert B. McKnight, Jr., Chairman of the Board, President and Chief Executive Officer of Quiksilver, Inc., commented, “Our fourth quarter was very challenging, as retailers bought conservatively for the holiday season and traffic in our own retail stores remained sluggish through October. In that context, we were pleased that our results were somewhat better than we expected. We also accomplished a number of important business objectives in the quarter. We reinforced our product leadership, maintained and even expanded our leading market share positions and staged a number of major events further connecting our brands with the broad group of consumers that either participate in or are inspired by action sports.”
Net revenues in the Americas segment decreased 22% during the fourth quarter of fiscal 2009 to $239.5 million from $306.9 million in the fourth quarter of fiscal 2008. In constant currency, European segment net revenues decreased 4% compared to the prior year. As reported in the financial statements, European segment net revenues decreased 2% during the fourth quarter of fiscal 2009 to $211.4 million from $216.3 million in the fourth quarter of fiscal 2008. In constant currency, Asia/Pacific segment net revenues decreased 4% compared to the prior year. As reported in the financial statements, Asia/Pacific segment net revenues increased 5% to $86.6 million in the fourth quarter of fiscal 2009 from $82.6 million in the fourth quarter of fiscal 2008. Please refer to the accompanying tables in order to better understand the impact of foreign currency on revenue trends in our Europe and Asia/Pacific segments.
Net revenues in the Americas for the full year of fiscal 2009 decreased 12% to $929.7 million. In constant currency, European segment net revenues decreased 7% compared to the prior year. As reported in the financial statements, European segment net revenues decreased 15% during the full year of fiscal 2009 to $792.6 million. In constant currency, Asia/Pacific segment net revenues increased 9% compared to the prior year. As reported in the financial statements, Asia/Pacific net revenues decreased 5% to $251.6 million in fiscal 2009.
Consolidated inventories decreased 14% to $267.7 million at October 31, 2009 from $312.1 million at October 31, 2008. Inventories decreased 22% in constant currency. Consolidated trade accounts receivable decreased 8% to $430.9 million at October 31, 2009 from $470.1 million at October 31, 2008. Trade accounts receivable decreased 16% in constant currency.
Addressing its outlook for continuing operations, the company stated that based on current trends, first quarter revenues are expected to be down approximately 7% compared to the same quarter a year ago and that it expects to incur a loss per share between $0.12 and $0.15 per share. The company indicated that longer term visibility into revenues and earnings remains limited due to global economic conditions.
The company had approximately $143 million of availability under its credit lines in addition to approximately $100 million of unrestricted cash at the end of the fourth quarter.
About Quiksilver:
Quiksilver, Inc. (NYSE:ZQK) is the world’s leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage.
The reputation of Quiksilver’s brands is based on different outdoor sports. The Company’s Quiksilver, Roxy, DC and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani.
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 and select department stores. Quiksilver’s corporate and Americas’ headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz, France, and its Asia/Pacific headquarters are in Torquay, Australia.
