Quiksilver Profit Falls, Yet Tops Estimates; Stock Up - Update

(RTTNews) - Apparel and footwear maker Quiksilver Inc. (ZQK), Thursday reported a plunge in third-quarter profit, hurt mainly by lower sales in the U.S. and Asia Pacific regions, as well as restructuring charges. Excluding one-time costs, earnings for the quarter topped Wall Street estimates, but sales fell short of expectations.

Quiksilver indicated streamlining its global operations in a period marked by sales momentum in Europe and the Middle East and Africa region, and emerging markets. Positive momentum was also seen for online sales. The better-than-expected profit sent Quiksilver shares up 13.5 percent in after-hours trade on the New York Stock Exchange.

Huntington Beach, California-based Quiksilver reported third-quarter net earnings of $2 million or $0.01 per share, a decline from $12.6 million or $0.07 per share last year.

Results for the quarter included restructuring and other charges of about $11 million.

Excluding items, adjusted earnings for the quarter were $18 million, compared with $16.7 million a year ago. On a per share basis, earnings were flat with last year at $0.10.

On average, 9 analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter declined to $496 million from $512 million last year. Analysts expected revenues of $505 million for the quarter.

Americas revenue fell 6 percent from a year ago, and APAC was down 12 percent. EMEA sales were up 6 percent.

Gross margin for the quarter slid 10 basis points to 49.4 percent.

The company's stock closed Thursday at $5.20, up $0.12 or 2.36%, on a volume of 3.5 million shares. In after hours, the stock gained $0.70 or 13.46%.