(By Balaseshan) Quiksilver Inc. (NYSE:ZQK), an outdoor sports lifestyle company, reported an increase in quarterly earnings on lower provision for income taxes. Adjusted earnings came in ahead of Street's expectations.
Earnings for the third quarter were $12.61 million or $0.07 per share, up from $10.44 million or $0.06 per share last year. Pro forma earnings for the latest quarter were $16.44 million or $0.09 per share.
Revenues rose 2% to $512.4 million, while in constant currency revenue increased 8%.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.05 per share on revenue of $527.18 million for the third quarter.
Revenue from Americas grew 10% to $286.1 million, while Europe revenue fell 13% to $154.1 million. Revenue from Asia/Pacific increased 9% to $71.6 million, while corporate operations revenue declined to $604,000 from $1.23 million.
Third quarter same store sales in company-owned retail stores grew 4% on a global basis.
Gross margin decreased to 49.5% from 50.7%, principally driven by lower margins in Europe due to higher levels of discounting and unfavorable currency exchange rate comparisons.
ZQK closed Thursday's regular session up 0.99% at $3.06. The stock has been trading between $2.09 and $4.89 for the past 52 weeks.