Quiksilver Reports 2001 First Quarter Operating Results


Consolidated Summer Bookings Increase 22%

Quiksilver, Inc. (NYSE:ZQK), announced operating results for the first quarter ended January 31, 2001.

Consolidated net sales for the first quarter of fiscal 2001 increased 21.9% to $121,833,000 as compared to fiscal 2000 first quarter consolidated net sales of $99,929,000. Consolidated net income for the first quarter of fiscal 2001 was $3,706,000 as compared to $4,079,000. First quarter fully-diluted earnings per share were $0.16 versus $0.18 for the first quarter of fiscal 2000.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “These results, which exceeded the company’s internal plan and analysts’ estimates, represent a strong start to fiscal 2001, and we are encouraged as this positive momentum continues into the second quarter. Our diversified distribution strategy enabled us to achieve solid top line growth in a challenging retail environment, while allowing us to pursue various growth opportunities.”

Domestic net sales during the first quarter of fiscal 2001 increased 25.4% to $78,575,000 as compared to fiscal 2000 first quarter domestic net sales of $62,650,000. As measured in French Francs, European net sales increased 32.0% for those same periods. As measured in U.S. dollars and reported in the financial statements, European net sales increased 16.0% during the first quarter of fiscal 2001 to $43,258,000 as compared to fiscal 2000 first quarter European net sales of $37,279,000.

Mr. McKnight further commented, “We firmly believe that product is the key to growing our business, and I am pleased to say that we have received excellent feedback on our Fall lines at the MAGIC and Action Sports Retailer trade shows. The reaction to our core Quiksilver and Roxy lines, as well as to our Hawk, Quiksilver Silver Edition, Leilani, Raisins, and Radio Fiji lines was very positive across the board. Our strong Spring and Summer bookings, which both increased 22%, bode well for a successful first half of the year.”

Consolidated inventories increased 25.8% to $113,281,000 at January 31, 2001 from $90,034,000 at October 31, 2000, while increasing 25.3% compared to January 31, 2000. Consolidated trade accounts receivable decreased 11.3% to $120,969,000 at January 31, 2001 from $136,394,000 at October 31, 2000, while increasing 27.7% compared to January 31, 2000. These year-over-year increases in inventories and accounts receivable are consistent with the sales increase and the remaining backlog for Spring and Summer.

McKnight concluded, “We move forward in 2001 with a powerful platform on which to grow into the future. And while many of our new growth ventures are in their infancy, we have a high degree of confidence that they can prove to be meaningful contributors to our top line and bottom line in the future. We are dedicated to capitalizing on the many opportunities that lie ahead, and committed to a strategy that will result in continued long-term growth and increased shareholder value.”

About Quiksilver:

Quiksilver designs, produces and distributes clothing, accessories and related products for active-minded people and develops brands that represent a casual lifestyle – driven from a boardriding heritage. Quiksilver’s authenticity is evident in its innovative products, events and retail environments across the globe.

Quiksilver’s primary focus is apparel for young men and young women under the Quiksilver, Quiksilver Roxy, Raisins, Radio Fiji and Hawk Clothing labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Teenie Wahine and Raisins Girls), men (QS Silver Edition and Fidra) and women (Leilani and Alex Goes), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops and specialty stores that provide an outstanding retail experience for their customers.