The newly acquired operations of the Rossignol Group, including Cleveland Golf, were responsible for $192 million of the $198.3 million increase in the revenues of Quiksilver during the three months ended Jan. 31.
No comparable year-earlier figures are available for Rossignol, but it seems that the group performed relatively well in a seasonally strong period for in the ski sector, which corresponds to the 1st quarter of Quiksilver’s financial year.
Quiksilver’s total revenues grew by 58 percent to $541,142,000 during the period, up 58 percent from the same period a year ago. Softness in the Asia/Pacific and foreign exchange losses held down revenues in the core businesses of the group, but there were also pockets of strength such as DC Shoes in the USA and Roxy in Europe.
Group net income rose by 31 percent to $18,603,000, but it would have increased more without extraordinary charges of $4.1 million. The gross margin rose to 45.9 percent from 44.6 percent in the year-ago period. Operating margins increased from 6.8 to 6.9 percent.
The addition of the Rossignol business had a dramatic impact on the group’s European operating earnings, which nearly tripled to $43.3 million from $15.0 million on a 97 percent sales increase to $261.2 million. In terms of euros, European revenues actually rose by 118 percent, representing almost half of the total turnover.
Instead, operating income fell by 54 percent to $4.0 million in the Americas, where sales rose by 39 percent to $220.7 million. In the Asia/Pacific region, operating income declined by 60 percent to $3.0 million on 16 percent higher sales of $58.3 million.
The integration of Rossignol continues as planned. Quiksilver has not changed its guidance for this year’s overall financial results, but indicates that some of the sales increases expected in the 2nd quarter will probably take place in the 3rd and 4th one.
Meanwhile, Stéphane Weinhold has been appointed to run Tayax, a new company set up for the development of Rossignol’s apparel. Weinhold, a former executive of Quiksilver Europe who worked most recently at Rip Curl, reports to Gérard Pichot, a Rossignol veteran who has been placed in charge of all the softgoods activities following the departure of Andrea Mainardi.
