Surfwear maker Quiksilver Inc. saw a big jump in earnings and sales that topped forecasts for the quarter ended Oct. 28, thanks to Skis Rossignol, which it acquired in late 2005.
The Huntington Beach company’s net income for the quarter rose 94% from a year earlier to $65.3 million.
Sales rose 22% to $778.4 million, easily topping the average $747.5 million estimate of analysts and Quiksilver’s own projected $745 million to $750 million.
The company “has begun to fulfill our vision as the world’s leading outdoor sports company,” Chief Executive Bob McKnight said.
Quiksilver acquired France’s Skis Rossignol as a way to expand beyond the company’s mainstay clothes inspired by surfing and skateboarding.
The results are the first good news out of the deal after a series of warnings from Quiksilver sparked in part by integration and sales issues at Rossignol, which was losing money and market share before the buy.
Rossignol now is “firmly under our belt,” McKnight said, and “will enable us to drive strong, long-term rates of sales and income growth.”
Quiksilver also reiterated its outlook for the 12 months through next October.
The company said it expects profits of up to $118 million in the 12-month period. Analysts on average expect $117 million.
Sales could come in at $2.5 billion, the company said.
Quiksilver also named Heidi Ueberroth to its board of directors. Ueberroth is president of global efforts for the National Basketball Association.
Ueberroth is the daughter of Peter Ueberroth, head of the U.S. Olympic Committee.
