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 9, 2004

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 Number)

15202 Graham Street, Huntington Beach, CA
(Address of principal executive offices) 92649
(Zip Code)

Registrant’s telephone number, including area code:
(714) 889-2200

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURES
INDEX TO EXHIBITS
EXHIBIT 99.1

Item 2.02 Results of Operations and Financial Condition

     The purpose of this Current Report on Form 8-K is to furnish the press release issued by Quiksilver, Inc. on September 9, 2004 announcing its financial results for the quarter ended July 31, 2004. The press release is attached hereto as Exhibit 99.1.

     The information in this Form 8-K and Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any such filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

               The following exhibits are being furnished herewith:

Exhibit No.	Exhibit Title or Description
99.1	Press Release dated September 9, 2004, issued by Quiksilver, Inc.

SIGNATURES

     Pursuant to the requirements of the Securities 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 9, 2004	Quiksilver, Inc. (Registrant)
	By:	/s/ Steven L. Brink
		Steven L. Brink
		Chief Financial Officer and Treasurer

INDEX TO EXHIBITS

Exhibit No.	Exhibit Title or Description
99.1	Press Release, dated September 9, 2004, issued by Quiksilver, Inc.

EX-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 RECORD 2004 THIRD QUARTER
OPERATING RESULTS

— Consolidated Revenues Increase 34% —
— Earnings Per Share increase 52% to $0.32 —

     HUNTINGTON BEACH, CALIFORNIA, SEPTEMBER 9, 2004 — Quiksilver, Inc. (NYSE:ZQK) today announced record operating results for the third quarter ended July 31, 2004.

     Consolidated revenues for the third quarter of fiscal 2004 increased 34% to $337.9 million as compared to fiscal 2003 third quarter consolidated revenues of $251.5 million. Consolidated net income for the third quarter of fiscal 2004 increased 64% to $19.5 million as compared to $11.9 million. Third quarter fully diluted earnings per share was $0.32 versus $0.21 for the third quarter of fiscal 2003.

     Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “We are very pleased with our accomplishments during the third quarter. This represents our 11th consecutive quarter of exceeding expectations and further highlights our excellent track record of generating strong and consistent financial results. Our business trends are solid, and we are encouraged about our prospects for the future.”

     Revenues in the Americas increased 37% during the third quarter of fiscal 2004 to $187.9 million as compared to fiscal 2003 third quarter revenues of $137.4 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 23% during the third quarter of fiscal 2004 to $115.4 million as compared to fiscal 2003 third quarter European revenues of $93.9 million. As measured in euros, European revenues increased 17% for those same periods. Asia/Pacific revenues increased 67% to $33.1 million in the third quarter of fiscal 2004 compared to $19.8 million in the third quarter of 2003. As measured in Australian dollars, Asia/Pacific revenues increased 56%.

- more -

2004 Third Quarter
September 9, 2004 — Page 2

     Mr. McKnight continued, “The feedback regarding our Spring lines at recent trade shows around the world, including MAGIC in the U.S. and ASR in Europe, was very positive and reflects our ongoing commitment to develop the best product in the market. We believe that our merchandise is trend right and underscores our status as the dominant lifestyle company for kids and young adults around the world.”

     The Company also confirmed its expectations for the fourth quarter fiscal ending October 31, 2004 that revenues will range between $315 million and $320 million, and diluted earnings per share will range between $0.36 and $0.37. For the full fiscal year, revenues are expected to range between $1.23 billion and $1.24 billion with diluted earnings per share ranging from $1.31 to $1.32.

     Consolidated inventories increased 8% to $171.6 million at July 31, 2004 from $159.5 million at July 31, 2003. Consolidated trade accounts receivable increased 25% to $271.4 million at July 31, 2004 from $217.9 million at July 31, 2003. Average days sales outstanding decreased by approximately four days compared to the third quarter of the prior year, while inventories grew 5% in constant dollars.

     “This first quarter with DC Shoes included in our results was truly exceptional. Congratulations to all of our people around the world not only for the quarterly results, but for the tremendous spirit in which we’ve integrated DC into our company,” Bernard Mariette, President of Quiksilver, Inc., commented. “We’re very impressed by the way that Ken Block, Damon Way and their DC team are already contributing to the development of Quiksilver footwear. We can see the synergies of working together happening faster than we could have expected.”

     Mr. McKnight concluded, “Our continued success is really a function of continuing to adhere to a few key disciplines: great product; careful brand management; a healthy philosophy regarding growth; and a strategic development plan designed to enhance each part of our business. Also fundamental to our consistency is the diversification of our company and the continuity of our management teams. We remain focused on further leveraging our leadership position in the industry and fully capitalizing on the many opportunities that lie ahead.”

2004 Third Quarter
September 9, 2004 — 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, 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, http://www.fidragolf.com, http://www.quiksilveredition.com and http://www.hawkclothing.com

2004 Third Quarter
September 9, 2004 — Page 4

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended July 31,
In thousands, except per share amounts	2004			2003
Revenues	$	337,930		$	251,498
Cost of goods sold		187,523			144,369
Gross profit		150,407			107,129
Selling, general and administrative expense		118,864			85,684
Operating income		31,543			21,445
Interest expense		1,498			2,232
Foreign currency (gain) loss		(28	)		801
Other expense		392			146
Income before provision for income taxes		29,681			18,266
Provision for income taxes		10,151			6,348
Net income	$	19,530		$	11,918
Net income per share	$	0.33		$	0.22
Net income per share, assuming dilution	$	0.32		$	0.21
Weighted average common shares outstanding		58,386			55,077
Weighted average common shares outstanding, assuming dilution		60,813			57,567

2004 Third Quarter
September 9, 2004 — Page 5

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Nine Months Ended July 31,
In thousands, except per share amounts	2004		2003
Revenues	$	916,651	$	705,788
Cost of goods sold		505,532		398,568
Gross profit		411,119		307,220
Selling, general and administrative expense		318,246		235,483
Operating income		92,873		71,737
Interest expense		4,563		6,455
Foreign currency loss		2,059		1,616
Other expense		901		410
Income before provision for income taxes		85,350		63,256
Provision for income taxes		28,856		22,140
Net income	$	56,494	$	41,116
Net income per share	$	1.00	$	0.76
Net income per share, assuming dilution	$	0.95	$	0.73
Weighted average common shares outstanding		56,730		53,827
Weighted average common shares outstanding, assuming dilution		59,168		56,244

2004 Third Quarter
September 9, 2004 — Page 6

CONSOLIDATED BALANCE SHEETS (Unaudited)

	July 31, 2004			October 31, 2003
Amounts in thousands
ASSETS
Current assets:
Cash and cash equivalents	$	45,389		$	27,866
Trade accounts receivable, less allowance for doubtful accounts of $11,248 (2004) and $8,700 (2003)		271,399			224,418
Other receivables		11,086			7,617
Inventories		171,639			146,440
Deferred income taxes		22,350			17,472
Prepaid expenses and other current assets		13,871			9,732
Total current assets		535,734			433,545
Fixed assets, net		111,690			99,299
Intangibles, net		114,962			65,577
Goodwill		131,328			98,833
Deferred income taxes		3,381			1,984
Other assets		11,793			8,732
Total assets	$	908,888		$	707,970
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit	$	5,190		$	20,951
Accounts payable		97,818			64,537
Accrued liabilities		54,069			41,759
Current portion of long-term debt		9,880			8,877
Income taxes payable		14,443			10,796
Total current liabilities		181,400			146,920
Long-term debt		176,716			114,542
Total liabilities		358,116			261,462
Stockholders’ equity:
Preferred stock		—			—
Common stock		599			570
Additional paid-in capital		197,335			155,310
Treasury stock		(6,778	)		(6,778	)
Retained earnings		334,048			277,554
Accumulated other comprehensive income		25,568			19,852
Total stockholders’ equity		550,772			446,508
Total liabilities & stockholders’ equity	$	908,888		$	707,970

2004 Third Quarter
September 9, 2004 — Page 7

Information related to geographic segments is as follows:

	Three Months Ended July 31,
Amounts in thousands	2004			2003
Revenues:
Americas	$	187,880		$	137,366
Europe		115,436			93,852
Asia/Pacific		33,108			19,775
Corporate Operations		1,506			505
	$	337,930		$	251,498
Gross Profit:
Americas	$	75,286		$	52,048
Europe		58,194			45,612
Asia/Pacific		16,254			8,964
Corporate Operations		673			505
	$	150,407		$	107,129
SG&A Expense:
Americas	$	52,676		$	38,354
Europe		44,898			33,863
Asia/Pacific		12,442			8,340
Corporate Operations		8,848			5,127
	$	118,864		$	85,684
Operating Income:
Americas	$	22,610		$	13,694
Europe		13,296			11,749
Asia/Pacific		3,812			624
Corporate Operations		(8,175	)		(4,622	)
	$	31,543		$	21,445