On their quarterly conference call today at 1:30 PM PST, Quiksilver, Inc. announced results for the second quarter ended April 30, 2008. The call included Bob McKnight, Joe Scirocco, Marty Samuels, and Bruce Thomas.
Consolidated net revenues from continuing operations for the second quarter of fiscal 2008 increased 15% to $596.3 million, from $520.4 million in the second quarter of fiscal 2007. Consolidated income from continuing operations for the second quarter of fiscal 2008 was $38.7 million, or $0.30 per share, compared to $32.4 million, or $0.25 per share, for the second quarter of fiscal 2007.
As usual Bob McKnight opened and closed the comments, Joe spoke the most, and Joe and Marty answered most of the questions.
Here are some highlights from the call:
- McKnight is happy with second quarter financials.
- Rossignol has been moved to “discontinued ops”
- “Rossignol Impairment Charge Drives Net Loss of $(1.59) per share”
- The list of potential buyers for Rossignol has been narrowed. The sale is expected to go smoothly but for a little less than had been projected.
- Sponsored athletes continue to dominate. Kelly Slater has won three of four ASP Tour events. His best season start in his career. Sophia Milanovich is number one on the women’s tour. Snowboarder Austin Smith won rookie of the year at the 2007 Transworld Riders’ Poll awards. Five DC athletes have been featured on the covers of action sports magazines.
- Quiksilver currently carries $1 billion in dept. $93 million of that is on the Rossignol books some of Rossignol debt is on the Quik books, but that will be covered with the proceeds from the sale.
- Company stores have been hit by the “housing issues” because 50 percent of their stores are in California, Nevada, Arizona, and Florida.
- Online sales are up, “You don’t have to get in the car to visit our websites,” Marty Samuels said, sounding like he’s finally buying into the whole online thing.
- Thank, God for DC Shoes. It is the bright spot in Quik’s North American sales and continues to buck all the trends.
- DC has survived the PacSun loss by increasing orders in mall stores like Journeys and Zumiez as well as entering the department store channel with DC Apparel.
- Quik and Roxy were both slightly down in total sales.
- Quik is looking for 10 percent growth in sales in 2008. Low single digits in the US, mid-teen growth in Europe, and in the 15-20 percent range in Asia Pacific.
- EPS for the third quarter will be down 20 percent vs. 2007.
- Quik has survived most of the “sourcing pressure” because they are a “good customer” and the company is on track with projected supplier cost savings.
- Click here to listen to a replay of the call, or here for the press release.
- [Link: Quiksilverinc.com]
