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): June 14, 2004

QUIKSILVER, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware (State or Other Jurisdiction of Incorporation)	0-15131 (Commission File Number)	33-0199426 (IRS Employer Identification No.)
15202 Graham Street, Huntington Beach, CA		92649
(Address of Principal Executive Offices)		(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

EXHIBIT 99.1

Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS

     (c) The following exhibits are being furnished herewith:

Exhibit No.	Description of Exhibit
99.1	Press Release, dated June 14, 2004, issued by Quiksilver, Inc.

Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The purposes of this Current Report on Form 8-K is to furnish the press release issued by Quiksilver, Inc. on June 14, 2004 announcing its financial results for the quarter ended April 30, 2004. The press release is attached hereto as Exhibit 99.1.

The information contained in Item 12 and the press releases are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference in any filing with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, whether made before or after the date hereof and irrespective of any general incorporation language in any filings, except as shall be expressly set forth by specific reference in such filing.

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: June 14, 2004	QUIKSILVER, INC.
	By:	/s/ Steven L. Brink
		Steven L. Brink
		Chief Financial Officer and Treasurer

2

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release, dated June 14, 2004, issued by Quiksilver, Inc.

3

EX-99.1

EXHIBIT 99.1

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

QUIKSILVER, INC. REPORTS 2004 SECOND QUARTER FINANCIAL RESULTS

— Consolidated Revenues Increase 23% —
— Earnings Per Share of $0.47 Exceeds Consensus Estimate of $0.46 —
— Raising Fiscal 2004 Sales and Earnings Per Share Guidance —

     HUNTINGTON BEACH, CALIFORNIA, JUNE 14, 2004 — Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the second quarter ended April 30, 2004.

     Consolidated revenues for the second quarter of fiscal 2004 increased 23% to $322.6 million as compared to fiscal 2003 second quarter consolidated revenues of $262.2 million. Consolidated net income for the second quarter of fiscal 2004 increased 23% to $27.8 million as compared to $22.6 million the year before. Second quarter fully diluted earnings per share was $0.47 versus $0.40 for the second quarter of fiscal 2003.

     Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “We are pleased to continue our strong track record, with the second quarter representing our 10th consecutive quarter of out-performance. The keys to our ongoing success continue to be our clear vision for our brands, an ability to translate our lifestyle position into compelling marketing, a commitment to building a responsive global operating platform, and most importantly, the ability to design and distribute product that resonates with our consumers.”

     Revenues in the Americas increased 16% during the second quarter of fiscal 2004 to $148.5 million as compared to fiscal 2003 second quarter revenues of $127.5 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 29% during the second quarter of fiscal 2004 to $140.3 million as compared to fiscal 2003 second quarter European revenues of $108.5 million. As measured in euros, European revenues

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2004 Second Quarter Results
June 14, 2004 – Page 2

increased 14% for those same periods. Asia/Pacific revenues increased 30% to $33.2 million in the second quarter of fiscal 2004 compared to $25.6 million in the second quarter of fiscal 2003. As measured in Australian dollars, Asia/Pacific revenues increased 3%.

Mr. McKnight continued, “We are incredibly pleased with our recent acquisition of DC Shoes. In addition to giving us a strong new brand capable of significant growth on a global scale, the infusion of talent and dedication into our management team and operations is of tremendous benefit to our culture and capabilities. We continue to regard DC Shoes as a significant catalyst for our business, and we are looking forward to demonstrating its potential to our shareholders.”

The Company also announced today that it has increased its guidance for the third and fourth fiscal quarters. Quiksilver now expects to generate third quarter revenues and diluted earnings per share of between $300 million and $305 million, and $0.28 to $0.29, respectively. For the fourth quarter, the company now believes that revenues and diluted earnings per share will range between $315 million and $320 million and between $0.36 and $0.37, respectively. Including this upward revision and the quarterly out-performance reported today, the Company now expects annual revenues for fiscal 2004 to range between $1.19 billion and $1.20 billion and for diluted earnings per share to range between $1.27 and $1.29.

Consolidated inventories increased 5% to $127.3 million at April 30, 2004 from $120.8 million at April 30, 2003. Consolidated trade accounts receivable growth was modest compared to the increase in sales, increasing 13% to $257.1 million at April 30, 2004 from $227.0 million at April 30, 2003. Average days sales outstanding decreased about six days. Inventories grew 2% in constant dollars.

Bernard Mariette, President of Quiksilver, Inc. commented, “The benefits of a unified strategic and operational structure for our Company are clear and compelling. We continue to make progress in globalizing our markets and management. In addition to creating opportunities for synergy and revealing incremental opportunities for growth, our efforts have also fostered a tremendous esprit de corps across our entire organization.”

Mr. McKnight concluded, “Even as we achieve record results and reach important milestones in our financial and strategic development, we believe that we are still, in many

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2004 Second Quarter Results
June 14, 2004 – Page 3

categories and markets, just scratching the surface of our potential. Our brands continue to reach new levels of recognition and acceptance, our operational efficiency continues to improve, and our strategic position has never been stronger. Despite the challenging character of the global apparel market, we are prospering and expect to continue to do so as we move forward.”

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, footwear and related accessories for young men and young women under the Quiksilver, Roxy, DC Shoes, Raisins, and Radio Fiji labels. Quiksilver also manufactures apparel, footwear and related accessories 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, DC Shoes, Roxy and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops, skate shops and other 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.dcshoecousa.com and http://www.fidragolf.com

2004 Second Quarter Results
June 14, 2004 – Page 4

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended April 30,
	2004			2003
In thousands, except per share amounts
Revenues	$	322,579		$	262,210
Cost of goods sold		175,536			143,627
Gross profit		147,043			118,583
Selling, general and administrative expense		104,647			81,374
Operating income		42,396			37,209
Interest expense		1,476			2,107
Foreign currency (gain) loss		(1,180	)		264
Other expense		227			97
Income before provision for income taxes		41,873			34,741
Provision for income taxes		14,083			12,111
Net income	$	27,790		$	22,630
Net income per share	$	0.49		$	0.42
Net income per share, assuming dilution	$	0.47		$	0.40
Weighted average common shares outstanding		56,170			54,514
Weighted average common shares outstanding, assuming dilution		58,685			56,846

2004 Second Quarter Results
June 14, 2004 – Page 5

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Six Months Ended April 30,
	2004		2003
In thousands, except per share amounts
Revenues	$	578,721	$	454,290
Cost of goods sold		318,009		254,199
Gross profit		260,712		200,091
Selling, general and administrative expense		199,382		149,799
Operating income		61,330		50,292
Interest expense		3,065		4,223
Foreign currency loss		2,087		815
Other expense		509		264
Income before provision for income taxes		55,669		44,990
Provision for income taxes		18,705		15,792
Net income	$	36,964	$	29,198
Net income per share	$	0.66	$	0.55
Net income per share, assuming dilution	$	0.63	$	0.53
Weighted average common shares outstanding		55,893		53,196
Weighted average common shares outstanding, assuming dilution		58,317		55,558

2004 Second Quarter Results
June 14, 2004 – Page 6

CONSOLIDATED BALANCE SHEETS (Unaudited)

	April 30, 2004			October 31, 2003
Amounts in thousands
ASSETS
Current assets:
Cash and cash equivalents	$	42,335		$	27,866
Trade accounts receivable, less allowance for doubtful accounts of $9,669 (2004) and $8,700 (2003)		257,122			224,418
Other receivables		6,615			7,617
Inventories		127,318			146,440
Deferred income taxes		17,996			17,472
Prepaid expenses and other current assets		15,440			9,732
Total current assets		466,826			433,545
Fixed assets, net		104,238			99,299
Intangibles, net		66,834			65,577
Goodwill		103,739			98,833
Deferred income taxes		1,055			1,984
Other assets		11,103			8,732
Total assets	$	753,795		$	707,970
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit	$	19,182		$	20,951
Accounts payable		64,354			64,537
Accrued liabilities		38,289			41,759
Current portion of long-term debt		10,079			8,877
Income taxes payable		9,705			10,796
Total current liabilities		141,609			146,920
Long-term debt		109,048			114,542
Total liabilities		250,657			261,462
Stockholders’ equity:
Preferred stock		—			—
Common stock		582			570
Additional paid-in capital		168,744			155,310
Treasury stock		(6,778	)		(6,778	)
Retained earnings		314,518			277,554
Accumulated other comprehensive gain		26,072			19,852
Total stockholders’ equity		503,138			446,508
Total liabilities & stockholders’ equity	$	753,795		$	707,970

2004 Second Quarter Results
June 14, 2004 – Page 7

Information related to geographic segments is as follows:

	Three Months Ended April 30,
	2004			2003
Amounts in thousands
Revenues:
Americas	$	148,536		$	127,537
Europe		140,286			108,464
Asia/Pacific		33,205			25,557
Corporate Operations		552			652
	$	322,579		$	262,210
Gross Profit:
Americas	$	61,044		$	54,925
Europe		69,053			51,590
Asia/Pacific		16,229			11,416
Corporate Operations		717			652
	$	147,043		$	118,583
SG&A Expense:
Americas	$	42,115		$	37,298
Europe		42,795			30,409
Asia/Pacific		12,397			7,603
Corporate Operations		7,340			6,064
	$	104,647		$	81,374
Operating Income:
Americas	$	18,929		$	17,627
Europe		26,258			21,181
Asia/Pacific		3,832			3,813
Corporate Operations		(6,623	)		(5,412	)
	$	42,396		$	37,209