Outdoor financials: Quiksilver posts Q3 profit, plus Hibbett Sports, Jarden, Eddie Bauer

Quiksilver posted a Q3 profit, Hibbett Sports shares tumbled after the departure of its COO, Jarden issued a new long-term earnings outlook, and Eddie Bauer asked note holders for an extension.
Author:
Updated:
Original:

Quiksilver posts Q3 profit

Quiksilver (NYSE: ZQK) said its third-quarter profit performance was hurt by increased costs and a weak economic environment.

The company reported that net income rose to $2.9 million, or $0.02 per share, for the quarter. This compares with a loss of $7.9 million, or $0.06 per share, in the same quarter a year ago.

Quiksilver's net income from continuing operations dropped 7.4 percent to $33.1 million, or $0.25 per share, from $35.7 million, or $0.28 per share, last year.

Revenue from continuing operations increased 7 percent to $564.9 million for the quarter.

Quiksilver said profit margins were fattened by a higher percentage of sales in Europe and at company-owned retail stores. Results were also helped by a tax benefit.

Cost of goods sold rose 1.3 percent, while selling, general and administrative expenses leaped 19 percent year over year.

Robert McKnight Jr., CEO and president of Quiksilver, said the performance was "in-line with our expectations, and we are relatively pleased to deliver results in this range given the negative trends we've all witnessed during the quarter in the retail environment."

The company recently announced that it had received a binding offer to purchase Rossignol and expects to close the transaction in the fall.

Quiksilver stood by its fiscal-year earnings view of "slightly below" $0.90 per share, including $0.03 from the tax benefit in the third quarter.

Hibbett Sports shares tumble after COO departure

Hibbett Sports (Nasdaq: HIBB) shares fell as much as 11 percent on Sept. 4, a day after the company's chief operating officer, Nissan Joseph, left the company over "philosophical differences" following a seven-month stay.

Shares tumbled $2.46, or 9.8 percent, to close at $22.69. They fell to a low of $22.32 earlier in the session.

Raymond James analyst Dan Wewer downgraded the retailer to "market perform" from "outperform," telling clients he was disappointed with the departure of Nissan Joseph. The news of the departure is surprising, as the investment community believed Joseph was off to a successful start at Hibbett, Wewer wrote in a note to clients.

"The company's performance began to improve soon after his arrival. Investors prefer to see management continuity in well-run retailers. This announcement will raise concerns regarding the management succession plan for Hibbett," the analyst wrote. "We have reason to believe that CEO Mickey Newsome was uncomfortable with the pace of new initiatives that Joseph wanted to implement."

Joseph desired to speed up the rate of reinvestment in the company, while Newsome is reluctant to pursue investments that do not result in immediate returns, the analyst added.

SunTrust Robinson Humphrey analyst David Magee wrote in a client note that he expected some volatility to follow Joseph's sudden departure. He said he was impressed by Joseph, though he may have been pushing too quickly for change. But he expects the company to improve in the long term.

Oppenheimer analyst Vivian Ma added in a note to investors, "While this does leave HIBB without an important executive going into the holiday season, we do not believe this is a major disaster for the company."

Jarden issues new long-term earnings outlook

Jarden Corp. (NYSE: JAH) issued a new long-term earnings goal, saying it now expects to earn $5 per share by 2011.

The company had set a goal in 2005 to earn $3 per share within three to five years, or between 2008 and 2011. That goal should now be achieved in 2008, Jarden said.

Both the earnings outlooks exclude some restructuring and other charges, according to the company.

Jarden is the parent company of Coleman, Campingaz, K2 Sports, Volkl, Marker, Ride, Atlas, Marmot and ExOfficio

Eddie Bauer asks note holders for extension

Eddie Bauer Holdings said (Nasdaq: EBHI) it is asking holders of its 5.25 percent Convertible Senior Notes due 2014 for an extension from Jan. 4, 2009, to Jan. 1, 2012, of the current limitation contained in its certificate of incorporation on direct or indirect ownership of its common stock or other equity securities.

The purpose of the consent is to amend the indenture to allow the company to extend the 4.75 percent limitation on ownership or accumulation of its securities contained in the company's certificate of incorporation to Jan. 1, 2012, while providing an exception from such limitation for conversion of the notes into common stock.

The company has retained MacKenzie Partners to serve as information and tabulation agent for the consent solicitation.

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Outdoor financials: Sale of division dings VF's Q4 profit, plus Eddie Bauer, Sport Chalet, K2, Timberland, Quiksilver, Oakley, LaCrosse, Wolverine, Jarden

Sale of division dings VF's Q4 profitVF Corp. (NYSE: VFC), parent of various outdoor brands including The North Face, posted a 15-percent drop in fourth-quarter profit due to costs related to the January sale of its intimate apparel business. Net income declined to $108.6 ...read more

Outdoor financials: Deckers swings to profit in Q2a, plus Kellwood, Dick's Sporting Goods, Rocky, LaCrosse, Jarden, Eddie Bauer, West Marine, Hibbett Sports

Deckers swings to profit in Q2 With a shift in marketing expenses and a sales boost from its Uggs brand, Deckers Outdoor (Nasdaq: DECK) said it returned to a profit in the second quarter. The company is parent of Ugg, Teva, Simple and Ahnu. Quarterly profit totaled $2.9 million, ...read more

Outdoor financials: Phoenix Footwear reports Q4 loss, plus Jarden, Eddie Bauer, Quiksilver

Phoenix Footwear reports Q4 lossPhoenix Footwear Group (Amex: PXG) swung to a loss in the fourth quarter as revenue declined. The company said it defaulted on financial covenants. Quarterly loss totaled $23.4 million, or $2.95 per share, from a profit of $71,000, or a penny per ...read more

Outdoor financials: Jarden board approves shareholder rights plan, plus Dick's Sporting Goods, Quiksilver, Hibbett Sports

Jarden board approves shareholder rights plan The board of directors of Jarden Corp. (NYSE: JAH) has approved the adoption of a stockholder rights plan designed to protect shareholders in the event of a takeover attempt. The plan grants a dividend of one stock right for each ...read more

Outdoor financials: Royal Robbins posts 28.6 percent sales increase for Phoenix parent, plus Johnson Outdoors, Gander Mountain, Dick's, Hibbett, Jarden, Eddie Bauer, Wellman

Royal Robbins posts 28.6 percent sales increase for Phoenix parentNet sales for the Phoenix Footwear Group (Amex: PXG) increased 6.4 percent, boosted by a 28.6 percent increase in Royal Robbins net sales. Total sales were $36.5 million versus $34.3 million for the third quarter ...read more

Outdoor financials: Sun Capital takes Kellwood bid to shareholders, plus Quiksilver, Under Armour, Dick's Sporting Goods, Jarden, Cabela's, Hibbett Sports, Crocs

Sun Capital takes Kellwood bid to shareholders Investment firm Sun Capital Securities Group said it is now taking its $542.3 million cash bid offer for Kellwood (NYSE: KWD) straight to the company's shareholders. Kellwood has already rejected Sun Capital's overtures twice in ...read more

Outdoor financials: Eddie Bauer's Q3 loss grows

Eddie Bauer's Q3 loss grows Eddie Bauer Holdings (Nasdaq: EBHI) reported a third-quarter loss, primarily driven by a $19.2 million non-cash change. Net loss for the quarter ended Sept. 27 was $18.6 million, or a loss of $0.61 per share, compared to a loss of $16.4 million, or a ...read more

Outdoor financials: Jarden Q1 profit triples on outdoor sales, plus Eddie Bauer, Liberty Media

Jarden Q1 profit triples on outdoor sales Jarden Corp. (NYSE: JAH) said its first-quarter profit more than tripled, helped by the acquisition of two outdoor sporting goods companies. Jarden is the parent of Coleman, Campingaz, K2, Marmot and Volkl, among others. For the quarter ...read more

Outdoor financials: Jarden posts increased Q3 profit, plus Cabela's, Under Armour, VF, Hanesbrands, GSI

Jarden posts increased Q3 profit Jarden (NYSE: JAH) reported a better-than-expected profit for the third quarter, as it maintained costs. It is parent of Coleman, Marmot and K2, among others. For the three months ended Sept. 30, net income rose to $73.7 million from $63.8 ...read more