Huntington Beach-based Quiksilver Inc., the largest maker of clothes inspired by surfing, reported a quarterly profit that beat expectations and upheld its outlook for the 12 months through October.
Quiksilver reported an adjusted profit of $32 million for the three months through July 31, beating the $27 million Wall Street analysts had expected.
The figure excludes the company’s money-losing ski business, Rossignol, which is in the process of being sold off.
Results were helped by stronger sales in Europe and at the company’s own stores, where it keeps a higher percentage of profits on clothes sold.
“We had a pretty decent quarter, given how tough the retail environment is around the world,” Chief Executive Robert McKnight said in a conference call.
Sales for the quarter were up 7% to $565 million.
Quiksilver kept its outlook for the 12 months through October. The company forecasts a yearly profit of about $117 million.
Analysts on average expect $111.5 million.
The quarterly results and yearly outlook helped push up Quiksilver’s shares in afterhours trading by about 8% on a market value of $900 million.
Late last month, Quiksilver said it has struck a deal to sell its Rossignol unit for $147 million to a former chief executive of the struggling French ski maker.
Led by former Rossignol chief executive Bruno Cercley, Chartreuse & Mont Blanc plans to buy the business in a deal that’s 75% cash and 25% debt.
Chartreuse & Mont Blanc is majority owned by Australia’s Macquarie Group Ltd. and includes minority investor Jarden Corp., a Rye, N.Y., maker of outdoor products.
The deal is expected to close in the fall.
Quiksilver bought Rossignol for $560 million in 2005.
