WASHINGTON (dpa-AFX) - Outdoor sports lifestyle company Quiksilver Inc. (ZQK), said Thursday it slipped to a loss in its second quarter, hurt by hefty impairment charges and valuation allowances related to the Asia Pacific region. Nevertheless, excluding items, adjusted earnings for the quarter topped Street estimates, as did revenues. Following the news, Quiksilver shares gained over 11.4 percent in extended trade.
Quiksilver, which designs and sells an array of branded apparel, footwear, and accessories, incurred a loss of $83.3 million or $0.51 per share in the second quarter, compared to a net profit of $9.4 million or $0.06 per share last year.
Results for the quarter include asset impairment charge of $74.6 million, and valuation allowances provided against tax assets totaling $26 million.
Excluding items that impacted both quarters, adjusted earnings from continuing operations increased to $17.2 million from $15.7 million last year. On a per share basis, adjusted earnings dropped to $0.09 from $0.11, reflecting higher share count for the quarter.
On average, 11 analysts polled by Thomson Reuters expected earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Chief Executive Officer Robert B. McKnight, Jr. said, '...Our Americas and European businesses delivered strong performances, although our business in Asia Pacific was affected by the natural disasters occurring in several of our markets. While global markets remain uneven, we are seeing some really encouraging signs for the future.
Revenues grew 2 percent to $478 million from the prior year. Wall Street analysts expected revenues of $471.74 million for the quarter.
By region, revenues from Americas increased 5 percent to $210.7 million, while Europe edged down 1 percent to $206.9 million. Asia/Pacific fell 1 percent to $58.1 million.
ZQK closed Thursday's regular trade at $4.59, up $0.14 or 3.15%, on a volume of 2 million shares on the NYSE. In after hours, the stock gained $0.50 or 11.42%.
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