8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):  September 10, 2003

QUIKSILVER, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	0-15131	33-0199426
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

15202 Graham Street, Huntington Beach, CA
(Address of Principal Executive Offices) 92649
(Zip Code)

Registrant’s Telephone Number, including Area Code:  (714) 889-2200

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

TABLE OF CONTENTS

	Item 7. FINANCIAL STATEMENTS AND EXHIBITS
	Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

Item 7. FINANCIAL STATEMENTS AND EXHIBITS

(a)	Not Applicable
(b)	Not Applicable
(c)	Exhibits

99.1 Press Release, dated September 10, 2003, issued by Quiksilver, Inc.

Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     The purpose of this Current Report on Form 8-K is to furnish, as required by Item 12 of Form 8-K, the Press Release issued by Quiksilver, Inc. on September 10, 2003. The Release is attached hereto as Exhibit 99.1.

SIGNATURES

     Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:  September 10, 2003	QUIKSILVER, INC.
	By:	/s/ Steven L. Brink
		Steven L. Brink Chief Financial Officer and Treasurer

2

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Press Release, dated September 10, 2003, issued by Quiksilver, Inc.

3 EX-99.1 3 a93011exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE	Company Contact:	Robert B. McKnight, Jr. Chairman & CEO Steven L. Brink Chief Financial Officer (714) 889-2200
	Investor Relations:	James Palczynski/Chad A. Jacobs Integrated Corporate Relations (203) 222-9013

QUIKSILVER, INC. REPORTS 2003 THIRD QUARTER OPERATING RESULTS

— Consolidated Revenues Increase 44% —
— Earnings Per Share increase 17% to $0.21 —
— Holiday Bookings Increase 11% —

     HUNTINGTON BEACH, CALIFORNIA, SEPTEMBER 10, 2003 — Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the third quarter ended July 31, 2003.

     Consolidated revenues for the third quarter of fiscal 2003 increased 44% to $251.5 million as compared to fiscal 2002 third quarter consolidated revenues of $175.0 million. Consolidated net income for the third quarter of fiscal 2003 was $11.9 million as compared to $8.8 million. Third quarter, fully diluted earnings per share was $0.21 versus $0.18 for the third quarter of fiscal 2002.

     Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, commented, “We were pleased with our results for the quarter which were primarily driven by a strong increase in sales and significant gross margin expansion. Our financial performance reflects the vitality of our brands and an ongoing commitment to develop the best product in the marketplace.”

     Revenues in the Americas increased 28% during the third quarter of fiscal 2003 to $137.4 million as compared to fiscal 2002 third quarter revenues of $107.3 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 41% during the third quarter of fiscal 2003 to $93.9 million as compared to fiscal 2002 third quarter European revenues of $66.6 million. As measured in euros, European revenues increased 16% for those same periods. Excluding the newly added Asia/Pacific division and in constant dollars, overall Holiday bookings increased 11% over the previous year.

-more-

2003 Third Quarter
September 10, 2003 – Page 2

     Mr. McKnight continued, “Holiday bookings were solid, up 11% on a consolidated basis. In the Americas, we were up 9%, and in Europe, we were up 14%. And the initial feedback on next year’s product is also good. We’ve just come off of a very encouraging round of trade shows, and the response from both our sales force and our customers has been excellent regarding our Spring lines.”

     Consolidated inventories increased 71% to $159.5 million at July 31, 2003 from $93.3 million at July 31, 2002. Consolidated trade accounts receivable increased 32% to $217.9 million at July 31, 2003 from $165.7 million at July 31, 2002. Inventories in the Americas and Europe grew 45% on a constant dollar basis with the new Asia/Pacific division accounting for the balance of the growth. Accounts receivable grew more slowly than sales as average days sales outstanding decreased about seven days.

     Bernard Mariette, President of Quiksilver Inc., commented, “I truly believe that our company has never been stronger in terms of design, merchandising, marketing and execution. Our solid performance is the result of continued market share gains, which reflects our ability to deliver fresh, trend-right products that are embraced by our core customers around the world. We move forward with positive momentum and remain focused on executing a strategy that will allow us to continue to deliver superior performance.”

     Mr. McKnight concluded, “Our ability to continue to post strong results despite the ongoing challenges in the retail environment is a testament to our diversified portfolio of leading lifestyle brands, disciplined execution of our key strategies and ongoing dedication to becoming the dominant lifestyle company for the global youth market. Our multi-brand, multi-channel, multi-country approach to our business sets us apart from our competition and offers us significant growth opportunities into the future.”

2003 Third Quarter
September 10, 2003 – Page 3

About Quiksilver:

     Quiksilver designs, produces and distributes clothing, accessories and related products for young-minded people and develops brands that represent a casual lifestyle-driven from a boardriding heritage. Quiksilver’s authenticity is evident in its innovative products, events and retail environments across the globe.

     Quiksilver’s primary focus is apparel for young men and young women under the Quiksilver, Roxy, Raisins, and Radio Fiji labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Roxy Girl, Teenie Wahine and Raisins Girls), men (Quiksilveredition and Fidra) and women (Leilani swimwear), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu, Supernatural Mfg. and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops and specialty stores that provide an authentic retail experience for our customers.

Safe Harbor Language

This Press Release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver’s SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled “Forward Looking Statements” in Quiksilver’s Annual Report on Form 10-K.

* * * * *

NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at http://www.quiksilver.com, http://www.roxy.com, http://www.fidragolf.com, and http://www.quiksilveredition.com

2003 Third Quarter
September 10, 2003 – Page 4

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

		Three Months Ended July 31,
In thousands, except per share amounts		2003		2002
Revenues		$	251,498	$	175,044
Cost of goods sold			144,369		104,691
	Gross profit		107,129		70,353
Selling, general and administrative expense			85,684		53,835
Operating income			21,445		16,518
Interest expense			2,232		2,039
Foreign currency loss			801		234
Other expense			146		108
Income before provision for income taxes			18,266		14,137
Provision for income taxes			6,348		5,292
Net income		$	11,918	$	8,845
Net income per share		$	0.22	$	0.19
Net income per share, assuming dilution		$	0.21	$	0.18
Weighted average common shares outstanding			55,077		47,054
Weighted average common shares outstanding, assuming dilution			57,567		49,364

2003 Third Quarter
September 10, 2003 – Page 5

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

		Nine Months Ended July 31,
		2003		2002
Revenues		$	705,788	$	509,426
Cost of goods sold			398,568		308,554
	Gross profit		307,220		200,872
Selling, general and administrative expense			235,483		152,587
Operating income			71,737		48,285
Interest expense			6,455		6,754
Foreign currency loss			1,616		596
Other expense			410		323
Income before provision for income taxes			63,256		40,612
Provision for income taxes			22,140		15,218
Net income		$	41,116	$	25,394
Net income per share		$	0.76	$	0.54
Net income per share, assuming dilution		$	0.73	$	0.52
Weighted average common shares outstanding			53,827		46,692
Weighted average common shares outstanding, assuming dilution			56,244		48,696

2003 Third Quarter
September 10, 2003 – Page 6

CONSOLIDATED BALANCE SHEETS (Unaudited)

			July 31, 2003			October 31, 2002
Amounts in thousands
ASSETS
Current assets:
	Cash and cash equivalents		$	49,363		$	2,597
	Trade accounts receivable, less allowance for doubtful accounts of $8,758 (2003) and $6,667 (2002)			217,924			168,237
	Other receivables			9,425			7,415
	Inventories			159,493			95,872
	Prepaid expenses and other current assets			29,224			20,708
		Total current assets		465,429			294,829
Property and equipment, net				93,108			73,182
Intangibles, net				65,770			51,134
Goodwill				98,917			26,978
Other assets				7,700			4,466
Total assets			$	730,924		$	450,589
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
	Lines of credit		$	112,476		$	32,498
	Accounts payable			89,798			47,279
	Accrued liabilities			39,518			40,137
	Current portion of long-term debt			7,999			10,680
	Income taxes payable			10,678			3,717
		Total current liabilities		260,469			134,311
Long-term debt				50,429			43,405
Deferred income taxes				1,610			—
		Total liabilities		312,508			177,716
Stockholders’ equity:
	Preferred stock			—			—
	Common stock			568			247
	Additional paid-in capital			152,770			66,769
	Treasury stock			(6,778	)		(6,778	)
	Retained earnings			260,154			219,038
	Accumulated other comprehensive income(loss)			11,702			(6,403	)
		Total stockholders’ equity		418,416			272,873
Total liabilities & stockholders’ equity			$	730,924		$	450,589

2003 Third Quarter
September 10, 2003 – Page 7

Information related to geographic segments is as follows:

		Three Months Ended July 31,
Amounts in thousands		2003			2002
Revenues:
	Americas	$	137,366		$	107,316
	Europe		93,852			66,646
	Asia/Pacific		19,775			—
	Corporate Operations		505			1,082
		$	251,498		$	175,044
Gross Profit:
	Americas	$	52,048		$	39,698
	Europe		45,612			29,573
	Asia/Pacific		8,964			—
	Corporate Operations		505			1,082
		$	107,129		$	70,353
SG&A Expense:
	Americas	$	38,354		$	29,390
	Europe		33,863			21,939
	Asia/Pacific		8,340			—
	Corporate Operations		5,127			2,506
		$	85,684		$	53,835
Operating Income:
	Americas	$	13,694		$	10,308
	Europe		11,749			7,634
	Asia/Pacific		624			—
	Corporate Operations		(4,622	)		(1,424	)
		$	21,445		$	16,518

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EX-99.1

Exhibit 99.1