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): March 9, 2006

Quiksilver, Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-14229	33-0199426
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

15202 Graham Street, Huntington Beach, CA	92649
(Address of principal executive offices)	(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 March 9, 2006 announcing its financial results for quarter ended January 31, 2006. The press release is attached hereto as Exhibit 99.1.

     The information in this Form 8-K and Exhibit 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 March 9, 2006, 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: March 9, 2006	Quiksilver, Inc.
	(Registrant)
	By:	/s/Steven L. Brink
	Name:	Steven L. Brink
	Title:	Chief Financial Officer and Treasurer

INDEX TO EXHIBITS

Exhibit Number	Exhibit Title or Description
99.1	Press Release, dated March 9, 2006, issued by Quiksilver, Inc.

EX-99.1

EXHIBIT 99.1

Company Contact:	Steven L. Brink
	Chief Financial Officer
	Quiksilver, Inc.
	(714) 889-2200
Investor Relations:	Chad A. Jacobs, James Palczynski
	Integrated Corporate Relations
	(203) 682-8200

— Quiksilver, Inc. Reports 2006 First Quarter Financial Results —

– First Quarter 2006 Net Revenues Increase 58% to $541.1 million –
– First Quarter Fiscal 2006 Earnings Per Share Increase 25% to $0.15 –
– Excluding Stock Compensation Expense, EPS Was $0.18, In Line With Guidance –
– Company Reiterates Fiscal 2006 Guidance –

Huntington Beach, California, March 9, 2006 — Quiksilver, Inc. (NYSE:ZQK) today announced operating results for the first quarter ended January 31, 2006. Consolidated net revenues for the first quarter of fiscal 2006 increased 58% to $541.1 from $342.9 million in the first quarter of fiscal 2005. Consolidated net income for the first quarter of fiscal 2006 increased 31% to $18.6 million from $14.2 million the year before. Consolidated net income for the first quarter of fiscal 2006 includes $4.1 million in stock compensation expense required by current accounting standards. No stock compensation expense was recorded in the first quarter of fiscal 2005. First quarter fully diluted earnings per share was $0.15 versus $0.12 for the first quarter of fiscal 2005, as adjusted for the two-for-one stock split that took effect in May 2005. Earnings per share on a fully diluted basis, excluding stock compensation expense, was $0.18 for the first quarter of fiscal 2006, in line with the company’s previous guidance. The $0.03 difference between $0.18 per share excluding stock compensation expense and actual earnings per share of $0.15 per share is determined by dividing $4.1 million, which is the tax-effected stock compensation expense, by 127.2 million weighted average common shares outstanding, assuming dilution.

Net revenues from the company’s newly acquired Rossignol and Cleveland Golf businesses totaled $192 million during the first quarter ended January 31, 2006.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “This was an exciting quarter for our organization. Our core business, including Quiksilver, Roxy and DC shoes, was strong in both the US and Europe, and we were pleased that the Rossignol integration continues to track according to plan. We recently had the tremendous opportunity to be involved with the Olympic Games. We are also incredibly proud that Kelly Slater and Chelsea Georgeson won the men’s and women’s world titles for surfing on the World Championship Tours in 2005. This is Chelsea’s first and Kelly’s seventh, a new record. We believe that our company has the dominant position in the outdoor sports market, and we are looking forward to leveraging that position across the full spectrum of our product and marketing capabilities.”

Net revenues in the Americas increased 39% during the first quarter of fiscal 2006 to $220.7 million from $159.3 million in the first quarter of fiscal 2005. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 97% during the first quarter of fiscal 2006 to $261.2 million from $132.6 million in the first quarter of fiscal 2005. As measured in euros, European net revenues increased 118% for

Quiksilver, Inc. 2006 First Quarter Results
March 9, 2006
Page 2 of 6

those same periods. Asia/Pacific net revenues increased 16% to $58.3 million in the first quarter of fiscal 2006 from $50.5 million in the first quarter of fiscal 2005.

Inventories totaled $406.5 million at January 31, 2006, which includes $159.1 million from the newly acquired Rossignol and Cleveland Golf businesses. Inventories related to the company’s other businesses grew 5% to $247.5 million at January 31, 2006 from $236.8 million at January 31, 2005. Accounts receivable totaled $533.5 million at January 31, 2006, which includes $241.8 million from the newly acquired Rossignol and Cleveland Golf businesses. Accounts receivable related to the company’s other businesses increased 16% to $291.7 million at January 31, 2006 from $252.1 million at January 31, 2005.

Bernard Mariette, President of Quiksilver, Inc., commented, “We were pleased with our first quarter results, highlighted by significant gains in both sales and earnings per share and continued margin expansion. During the quarter we executed well, achieved our financial plan and further extended our reach around the world. Importantly, the integration program of Rossignol is progressing on all fronts, and we are broadening our initiatives to enhance our gross profitability and improve our competitive position.”

Mr. Mariette continued, “We would like to congratulate all of our athletes who participated in the 2006 Winter Olympic Games in Torino. Rossignol has a legacy of involvement with the Winter Olympics and, along with the riders for the Quiksilver brands, we sponsored 165 athletes from 26 countries who won 36 medals at the games. Their passion, dedication and commitment to excellence inspires us all. We believe that a big part of the appeal of our brands is their association with athletes and the lifestyle and global culture of outdoor sports. We will continue to push ourselves as we build our business, streamline Rossignol’s operations, develop new products, and leverage our respective expertise.”

The company reiterated its fiscal 2006 annual revenue guidance of $2.25 to $2.27 billion and its fiscal 2006 annual diluted earnings per share guidance of $0.87 to $0.88, before stock compensation expense.

The company further noted that it was adjusting its quarterly guidance to primarily reflect improved visibility on the timing of revenues and expenses for its newly acquired Rossignol and Cleveland Golf businesses. In addition, this new guidance incorporates the effects of a challenging environment in the Asia/Pacific region. The company believes that its second quarter sales will now range between $525 to $530 million, a 2% reduction from prior guidance. The company expects second quarter diluted earnings per share of approximately $0.06, before stock compensation expense, versus its prior guidance of $0.17 per share. Offsetting this reduction, the company believes that the third quarter and fourth quarter are likely to show stronger revenues and diluted earnings per share than previously forecasted. The company increased its third quarter revenue guidance by 1% to between $485 and $490 million. It expects third quarter diluted earnings per share of approximately $0.07, before stock compensation expense, versus its prior guidance of $0.03 per share. In the fourth quarter, the company now expects to generate revenues in the range of $710 to $715 million, 1% higher than previous guidance. It expects fourth quarter diluted earnings per share in the range of approximately $0.56 to $0.57, before stock compensation expense, versus its prior guidance of $0.49 to $0.50 per share. Stock compensation expense is expected to amount to $0.03 per share in each of the second and third quarters and $0.02 per share in the fourth quarter of fiscal 2006.

Quiksilver, Inc. 2006 First Quarter Results
March 9, 2006
Page 3 of 6

Mr. McKnight concluded, “Passion for sport and the support and sponsorship of athletes are key components of who we are and what we do. We intend to take our love for the outdoors, and the lifestyles associated with a whole range of outdoor sports, and create a message and a vehicle for consumers to share in that spirit. In doing so, we believe that we will heighten our growth prospects and add increased value to our customers, business partners and shareholders around the world.”

About Quiksilver:

Quiksilver, Inc. (NYSE:ZQK) is the world’s leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, wintersports and golf equipment, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage, while its wintersports and golf brands symbolize a long standing commitment to technical expertise and competitive success on the mountains and on the links.

The reputation of Quiksilver’s brands is based on different outdoor sports. The Company’s Quiksilver, Roxy, DC Shoes and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani. The Rossignol, Dynastar, Lange, Look and Kerma brands are leaders in the alpine ski market, and the Company makes snowboarding equipment under its Rossignol, Dynastar, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. The Company’s golf business includes Cleveland Golf, as well as Never Compromise putters and Fidra apparel. Gotcha is the Company’s surf-based European brand addressing street fashion.

The Company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, ski shops, skateboard shops, snowboard shops, its proprietary Boardriders Club shops, other specialty stores and select department stores. Quiksilver’s corporate and Americas’ headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz and Voiron, France, and its Asia/Pacific headquarters are in Torquay, Australia.

Forward looking statements:

This press release contains forward-looking statements including but not limited to statements regarding the company’s financial forecast, earnings guidance and the success of the Rossignol integration activities. 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
www.quiksilver.com, www.roxy.com, www.dcshoecousa.com, www.quiksilveredition.com, www.hawkclothing.com,
www.rossignol.com, www.dynastar.com,
www.clevelandgolf.com, and www.fidragolf.com.

Quiksilver, Inc. 2006 First Quarter Results
March 9, 2006
Page 4 of 6

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended January 31,
In thousands, except per share amounts	2006			2005
Revenues, net	$	541,142		$	342,860
Cost of goods sold		292,581			189,954
Gross profit		248,561			152,906
Selling, general and administrative expense		211,305			129,483
Operating income		37,256			23,423
Interest expense		12,591			1,789
Foreign currency (gain) loss		(497	)		463
Minority interest and other (income) expense		(1,226	)		206
Income before provision for income taxes		26,388			20,965
Provision for income taxes		7,785			6,751
Net income	$	18,603		$	14,214
Net income per share	$	0.15		$	0.12
Net income per share, assuming dilution	$	0.15		$	0.12
Weighted average common shares outstanding		121,434			117,592
Weighted average common shares outstanding, assuming dilution		127,240			123,154

Quiksilver, Inc. 2006 First Quarter Results
March 9, 2006
Page 5 of 6

CONSOLIDATED BALANCE SHEETS (Unaudited)

	January 31,			October 31,
In thousands	2006			2005
ASSETS
Current assets:
Cash and cash equivalents	$	109,365		$	75,598
Trade accounts receivable, less allowance for doubtful accounts of $16,543 (2006) and $10,727 (2005)		533,468			599,486
Other receivables		18,314			27,414
Inventories		406,542			386,396
Deferred income taxes		41,768			41,646
Prepaid expenses and other current assets		28,362			21,819
Total current assets		1,137,819			1,152,359
Fixed assets, net		239,632			241,979
Intangibles, net		248,308			247,702
Goodwill		456,200			449,377
Other assets		45,009			43,955
Assets held for sale		23,280			23,229
Total assets	$	2,150,248		$	2,158,601
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit	$	247,459		$	220,113
Accounts payable		222,697			212,407
Accrued liabilities		164,346			182,973
Current portion of long-term debt		16,299			50,833
Income taxes payable		17,632			27,176
Total current liabilities		668,433			693,502
Long-term debt		635,289			640,348
Deferred income taxes		77,331			81,628
Total liabilities		1,381,053			1,415,478
Minority interest		9,015			10,241
Stockholders’ equity:
Preferred stock					¯
Common stock		1,245			1,241
Additional paid-in capital		251,590			242,284
Treasury stock		(6,778	)		(6,778	)
Retained earnings		484,646			466,043
Accumulated other comprehensive income		29,477			30,092
Total stockholders’ equity		760,180			732,882
Total liabilities & stockholders’ equity	$	2,150,248		$	2,158,601

Quiksilver, Inc. 2006 First Quarter Results
March 9, 2006
Page 6 of 6

Information related to geographic segments is as follows:

	Three Months Ended January 31,
In thousands	2006			2005
Revenues, net:
Americas	$	220,718		$	159,274
Europe		261,152			132,590
Asia/Pacific		58,342			50,450
Corporate operations		930			546
	$	541,142		$	342,860
Gross Profit:
Americas	$	87,782		$	62,424
Europe		134,708			65,628
Asia/Pacific		25,812			24,282
Corporate operations		259			572
	$	248,561		$	152,906
SG&A Expense:
Americas	$	83,819		$	53,733
Europe		91,455			50,651
Asia/Pacific		22,844			16,927
Corporate operations		13,187			8,172
	$	211,305		$	129,483
Operating Income:
Americas	$	3,963		$	8,691
Europe		43,253			14,977
Asia/Pacific		2,968			7,355
Corporate operations		(12,928	)		(7,600	)
	$	37,256		$	23,423