For the three months ended Jan. 31, the Huntington Beach, Calif.-based activewear and sportswear company reported net income shot up 112.8 percent to $6.6 million, or 24 cents a diluted share. By comparison, last year the company recorded profits of $3.1 million, or 13 cents. Earnings per share eclipsed the Wall Street estimate by 5 cents.
Total revenues caught some major air, soaring 30.7 percent to $192.1 million from $147 million a year ago. On a conference call with analysts, chief executive officer Robert McKnight Jr. said the company now expects full-fiscal-year revenues of $875 million to $890 million, putting it on the edge of becoming a billion-dollar company on the strength of its international expansion.
"As we approach the $1 billion sales mark, our philosophy remains the same," said McKnight in a statement. "What has changed is that we are now doing these things in a global context. Today, we have an incredibly broad base of sales, both from a global perspective and with regard to our portfolio of brands. We also have a well-developed infrastructure to support future growth. Our goal is to continue to leverage our leadership position in the market."
Industry observers are likewise very bullish about the company’s future.
"We believe that the company is fashion right and should continue to capitalize on the popularity of surf-inspired fashion," wrote Wells Fargo Securities analyst Jennifer Black in a research note. "We continue to see Quiksilver outperforming its peers in the department store channel. Channel checks indicate that the brand’s momentum in the specialty channel is not waning. Quiksilver is positioning itself to generate long-term growth by means of carefully expanding a variety of key brands and territories. In our opinion, Quiksilver has barely skimmed the surface of the international markets."
The quarterly numbers arrived after the markets closed on Thursday, and on Friday, investors reacted by bidding up the firm’s shares $1.51, or 5.8 percent, to close at $27.77 in New York Stock Exchange trading. While Quiksilver’s ticker symbol, ZQK, puts them last, alphabetically, in many portfolios, the firm’s performance has ranked close to the top. The stock has grown 39.9 percent from $19.85 over the past 12 months. That compares with the Standard & Poor’s 500, which has lost 28.4 percent, to 828.89 from 1,157.54, over the same period.