Quiksilver Says Earnings Will Be Off

Clothing maker Quiksilver Inc. posted fourth-quarter earnings that met analysts’ expectations Wednesday, but the Huntington Beach company said next year’s earnings will probably be lower than anticipated because of unfavorable foreign currency rates.

The company said it expects to earn $1.50 to $1.56 a share in 2001. Analysts had expected the company to earn $1.69, according to a survey by First Call/Thompson Financial.

For the fourth quarter, the company earned $9.8 million, or 42 cents a share, up 24% from $7.9 million, or 34 cents a share, in the comparable period last year. Sales rose 21.8% to $151.6 million.

International sales account for about one-third of Quiksilver’s overall sales.

Measured in French francs, European sales jumped 70.7% for the quarter. As measured in U.S. dollars, and reported in financial statements, however, European sales rose 41% to almost $54.7 million.

“In spite of the challenging currency environment during the fourth quarter, which is clearly beyond our control, our business is strong,” Chief Executive Robert B. McKnight Jr. said in a statement.

For the year, Quiksilver’s earnings rose 19.5% to $31.8 million, or $1.37 a share, from $26.6 million, or $1.14 a share, in 1999. Analysts had predicted annual earnings of $1.38 a share for 2000.

As a result of the currency translation, Quiksilver’s earnings for the year were about 10% lower than they would have been had the French currency remained constant to the U.S. dollar, McKnight said.

Sales rose 16.2% to $515.7 million.

Quiksilver’s stock closed Wednesday at $22, down 13 cents a share, on the New York Stock Exchange. The earnings report was released after U.S. markets closed.