Quiksilver Q2 profit falls despite 21% rise in net revenues
09 Jun '06
4 min read
Robert McKnight, Jr., Chairman of the Board and CEO of Quiksilver Inc, said, "We were pleased to meet our profitability targets for the quarter and we remain confident in our ability to do so for the remainder of the year. Our core business is strong, despite some short-term challenges in the Asia-Pacific region. Even with this softness, our diversified business model enabled us to achieve our overall objectives. Additionally, we are excited that our Rossignol business performed above expectations in the second quarter and that the integration is proceeding smoothly."
Net revenues in the Americas increased 26 percent during the second quarter of fiscal 2006 to $250.0 million from $199.2 million in the second quarter of fiscal 2005. As measured in US dollars and reported in the financial statements, European net revenues increased 23 percent during the second quarter of fiscal 2006 to $217.1 million from $176.3 million in the second quarter of fiscal 2005. As measured in euros, European net revenues increased 33 percent for those same periods.
Asia/Pacific net revenues decreased 4 percent to $48.2 million in the second quarter of fiscal 2006 from $50.3 million in the second quarter of fiscal 2005. As measured in Australian dollars, Asia/Pacific net revenues increased 2 percent for those same periods.
Bernard Mariette, President of Quiksilver Inc, said, "During the quarter we developed a clear focus on priorities, executed well, completed a large portion of our restructuring and integration for Rossignol, and positioned the company to achieve both its short term and long-term objectives. The combination of our powerful brands, our world-class team, and our comprehensive strategic vision for the business will enable us to continue to create a wide variety of compelling growth opportunities, including the creation of a full line of lifestyle apparel products under the Rossignol brand to be launched in 2007."
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