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 5, 2008

Quiksilver, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)	001-14229 (Commission File Number)	33-0199426 (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))

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 June 5, 2008 announcing its financial results for the quarter ended April 30, 2008. 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 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 June 5, 2008, issued by Quiksilver, Inc.

2

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: June 5, 2008	Quiksilver, Inc. (Registrant)
	By:	/s/ Charles S. Exon
		Charles S. Exon
		Chief Administrative Officer, Secretary and General Counsel

3

INDEX TO EXHIBITS

Exhibit No.	Exhibit Title or Description
99.1	Press Release, dated June 5, 2008, issued by Quiksilver, Inc.

 

4

EX-99.1

Exhibit 99.1

Company Contact:	Bruce Thomas
	Vice President, Investor Relations
	Quiksilver, Inc.
	+1 (714) 889-4425

— Quiksilver, Inc. Reports Fiscal 2008 Second Quarter Financial Results —
— Company Classifies Rossignol Group as Discontinued Operations —
— Rossignol Impairment Charge Drives Net Loss of $(1.59) per share —
— Net Revenues from Continuing Operations Increase 15% to $596 million —
— Income from Continuing Operations Increases 20% to $0.30 per share —

Huntington Beach, California, June 5, 2008—Quiksilver, Inc. (NYSE:ZQK) today announced results for the second quarter ended April 30, 2008. Consolidated net revenues from continuing operations for the second quarter of fiscal 2008 increased 15% to $596.3 million, from $520.4 million in the second quarter of fiscal 2007. Consolidated income from continuing operations for the second quarter of fiscal 2008 was $38.7 million, or $0.30 per share, compared to $32.4 million, or $0.25 per share, for the second quarter of fiscal 2007. Net revenues and income from continuing operations for all periods exclude the results of the Rossignol wintersports equipment and apparel business as well as the golf equipment business which are reported as discontinued operations. The company sold its golf equipment operations in December 2007 and has begun a process to sell its Rossignol wintersports equipment and apparel business.

The company classified its Rossignol wintersports equipment and apparel business as discontinued operations and took a non-cash pre-tax charge in the second quarter of $240.2 million. The non-cash charge is not expected to effect the company’s operations or financial covenants. The revision to the recorded value of the Rossignol Group was triggered by the sale process. The planned sale of the Rossignol Group is an objective which the company disclosed previously.

Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “We are pleased with the strong second quarter financial performance delivered by the Quiksilver team. As we separate the results of the Rossignol Group from those of our continuing core businesses, it becomes increasingly clear that our broadly diversified mix of brands, products, geographies and distribution channels positions us well in challenging economic climates, such as the one we all face today. As the boardsport lifestyle continues to expand around the world, our results demonstrate that the quality, style and authenticity of our brands have more influence than ever on the buying decisions of our customers.”

All segments have been adjusted to reflect the discontinued operations classification of the Rossignol wintersports equipment and apparel business. The Americas, Europe and Asia/Pacific segments include operations of the Quiksilver, Roxy, DC and other apparel brand businesses. Net revenues in the Americas segment increased 5% during the second quarter of fiscal 2008 to $247.6 million from $236.3 million in the second quarter of fiscal 2007. European segment net revenues increased 23% during the second quarter of fiscal 2008 to $284.5 million from $231.9 million in the second quarter of fiscal 2007. Approximately $36.0 million of Europe’s increase was attributable to the positive effect of foreign currency exchange rates. Asia/Pacific segment net revenues increased 23% to $62.5 million in the second quarter of fiscal 2008 from $51.0 million in the second quarter of fiscal 2007. Approximately $7.7 million of Asia/Pacific’s increase was attributable to the positive effect of foreign currency exchange rates.

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 2 of 10

Consolidated inventories increased 11% to $304.1 million at April 30, 2008 from $274.6 million at April 30, 2007. Changes in foreign currency exchange rates accounted for approximately $18.3 million of the increase in inventories compared to April 30, 2007. Consolidated trade accounts receivable increased 12% to $473.0 million at April 30, 2008 from $421.3 million at April 30, 2007. Changes in foreign currency exchange rates accounted for approximately $23.0 million of the increase in accounts receivable compared to April 30, 2007.

The company indicated that visibility into revenues and earnings remains limited for the remainder of the fiscal year. For continuing operations, the company indicated it expects to generate annual revenue growth for the full fiscal year of approximately 10% and expects to generate EPS that is slightly below the result generated in fiscal year 2007 of $0.90 per share.

Note:

Attachments to this press release include unaudited consolidated quarterly statements of income for the quarter and year-to-date period ended April 30, 2008 and each quarter for the year ended October 31, 2007, reflecting the Rossignol and golf equipment businesses as discontinued operations. Additionally, segment information has been provided for each quarter of fiscal 2007 adjusted for discontinued operations. Rossignol, Dynastar, Lange, Look and Kerma branded products are all included in the Rossignol Group, which has been classified as discontinued operations. The Cleveland and Fidra golf brands were previously included in discontinued operations.

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 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.

The reputation of Quiksilver’s brands is based on different outdoor sports. The Company’s Quiksilver, Roxy, DC 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 Company continues to make snowboarding equipment under its DC, Roxy, Lib Technologies, Gnu and Bent Metal labels.

The Company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company-owned retail stores, 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, France, and its Asia/Pacific headquarters are in Torquay, Australia.

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 3 of 10

Forward looking statements:

This press release contains forward-looking statements including but not limited to statements regarding the Company’s 2008 annual revenue guidance, 2008 annual diluted earnings per share guidance and other future 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 sections titled “Risk Factors” and “Forward-Looking Statements” in Quiksilver’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

* * * * *

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.

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 4 of 10

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended April 30,
In thousands, except per share amounts	2008			2007
Revenues, net	$	596,280		$	520,359
Cost of goods sold		295,938			270,977
Gross profit		300,342			249,382
Selling, general and administrative expense		230,800			194,826
Asset impairment		350			—
Operating income		69,192			54,556
Interest expense		12,996			11,671
Foreign currency loss		1,384			1,066
Minority interest and other income		(471	)		(74	)
Income before provision for income taxes		55,283			41,893
Provision for income taxes		16,558			9,474
Income from continuing operations	$	38,725		$	32,419
Loss from discontinued operations		(244,949	)		(37,219	)
Net loss	$	(206,224	)	$	(4,800	)
Income per share from continuing operations	$	0.31		$	0.26
Loss per share from discontinued operations	$	(1.95	)	$	(0.30	)
Net loss per share	$	(1.64	)	$	(0.04	)
Income per share from continuing operations, assuming dilution	$	0.30		$	0.25
Loss per share from discontinued operations, assuming dilution	$	(1.88	)	$	(0.29	)
Net loss per share, assuming dilution	$	(1.59	)	$	(0.04	)
Weighted average common shares outstanding		125,741			123,596
Weighted average common shares outstanding, assuming dilution		130,052			128,771

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 5 of 10

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Six Months Ended April 30,
In thousands, except per share amounts	2008			2007
Revenues, net	$	1,092,861		$	931,213
Cost of goods sold		548,995			486,751
Gross profit		543,866			444,462
Selling, general and administrative expense		452,210			371,364
Asset impairment		350			—
Operating income		91,306			73,098
Interest expense		24,044			23,539
Foreign currency loss		768			1,422
Minority interest and other income		(397	)		(41	)
Income before provision for income taxes		66,891			48,178
Provision for income taxes		20,596			11,087
Income from continuing operations	$	46,295		$	37,091
Loss from discontinued operations		(274,459	)		(39,416	)
Net loss	$	(228,164	)	$	(2,325	)
Income per share from continuing operations	$	0.37		$	0.30
Loss per share from discontinued operations	$	(2.19	)	$	(0.32	)
Net loss per share	$	(1.82	)	$	(0.02	)
Income per share from continuing operations, assuming dilution	$	0.36		$	0.29
Loss per share from discontinued operations, assuming dilution	$	(2.12	)	$	(0.31	)
Net loss per share, assuming dilution	$	(1.76	)	$	(0.02	)
Weighted average common shares outstanding		125,133			123,323
Weighted average common shares outstanding, assuming dilution		129,606			128,851

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 6 of 10

CONSOLIDATED BALANCE SHEETS (Unaudited)

	April 30,			April 30,
In thousands	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	91,334		$	64,455
Trade accounts receivable, less allowance for doubtful accounts of $24,226 (2008) and $18,849 (2007)		473,032			421,280
Other receivables		32,931			22,241
Inventories		304,059			274,580
Deferred income taxes		102,735			38,532
Prepaid expenses and other current assets		29,204			26,186
Current assets held for sale		290,236			454,769
Total current assets		1,323,531			1,302,043
Fixed assets, net		256,395			189,626
Intangibles, net		144,013			131,195
Goodwill		416,337			378,769
Other assets		45,056			27,067
Deferred taxes-long term		13,711			—
Non-current assets held for sale		—			452,240
Total assets	$	2,199,043		$	2,480,940
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit	$	245,877		$	97,450
Accounts payable		191,106			144,876
Accrued liabilities		116,892			83,150
Current portion of long-term debt		35,740			25,517
Income taxes payable		14,833			2,906
Liabilities related to assets held for sale		212,303			332,165
Total current liabilities		816,751			686,064
Long-term debt		656,607			618,461
Deferred taxes and other long-term liabilities		33,783			29,291
Non-current liabilities of assets held for sale		6,953			196,568
Total liabilities		1,514,094			1,530,384
Minority interest		—			10,072
Stockholders’ equity:
Preferred stock		—			—
Common stock		1,295			1,274
Additional paid-in capital		319,350			290,627
Treasury stock		(6,778	)		(6,778	)
Retained earnings		188,520			556,734
Accumulated other comprehensive income		182,562			98,627
Total stockholders’ equity		684,949			940,484
Total liabilities & stockholders’ equity	$	2,199,043		$	2,480,940

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 7 of 10

Information related to operating segments is as follows:

	Three Months Ended April 30,
In thousands	2008			2007
Revenues, net:
Americas	$	247,615		$	236,264
Europe		284,500			231,919
Asia/Pacific		62,484			50,974
Corporate operations		1,681			1,202
	$	596,280		$	520,359
Gross Profit:
Americas	$	105,779		$	97,828
Europe		161,730			125,190
Asia/Pacific		31,690			25,316
Corporate operations		1,143			1,048
	$	300,342		$	249,382
SG&A Expense:
Americas	$	89,697		$	76,712
Europe		98,058			77,358
Asia/Pacific		32,167			25,382
Corporate operations		10,878			15,374
	$	230,800		$	194,826
Asset Impairment:
Americas	$	350		$	—
Europe		—			—
Asia/Pacific		—			—
Corporate operations		—			—
	$	350		$	—
Operating Income:
Americas	$	15,732		$	21,116
Europe		63,672			47,832
Asia/Pacific		(477	)		(66	)
Corporate operations		(9,735	)		(14,326	)
	$	69,192		$	54,556

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 8 of 10

	Six Months Ended April 30,
In thousands	2008			2007
Revenues, net:
Americas	$	482,550		$	434,074
Europe		484,783			393,076
Asia/Pacific		122,860			102,087
Corporate operations		2,668			1,976
	$	1,092,861		$	931,213
Gross Profit:
Americas	$	207,535		$	182,136
Europe		271,427			211,440
Asia/Pacific		63,425			49,328
Corporate operations		1,479			1,558
	$	543,866		$	444,462
SG&A Expense:
Americas	$	184,307		$	151,207
Europe		186,137			143,974
Asia/Pacific		60,081			49,020
Corporate operations		21,685			27,163
	$	452,210		$	371,364
Asset Impairment:
Americas	$	350		$	—
Europe		—			—
Asia/Pacific		—			—
Corporate operations		—			—
	$	350		$	—
Operating Income:
Americas	$	22,878		$	30,929
Europe		85,290			67,466
Asia/Pacific		3,344			308
Corporate operations		(20,206	)		(25,605	)
	$	91,306		$	73,098

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 9 of 10

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (Unaudited)

	Three Months Ended									Year Ended
In thousands, except	January 31,		April 30,			July 31,		October 31,		October 31,
per share amounts	2007		2007			2007		2007		2007
Revenues, net	$	410,854	$	520,359		$	528,591	$	587,268	$	2,047,072
Cost of goods sold		215,774		270,977			276,512		298,764		1,062,027
Gross profit		195,080		249,382			252,079		288,504		985,045
Selling, general and administrative expense		176,538		194,826			194,323		216,576		782,263
Operating income		18,542		54,556			57,756		71,928		202,782
Interest expense		11,868		11,671			11,881		11,151		46,571
Foreign currency loss		356		1,066			310		3,125		4,857
Minority interest and other expense		33		(74	)		80		82		121
Income before provision for income taxes		6,285		41,893			45,485		57,570		151,233
Provision for income taxes		1,613		9,474			9,783		13,636		34,506
Net income from continuing operations	$	4,672	$	32,419		$	35,702	$	43,934	$	116,727
Income per share from continuing operations	$	0.04	$	0.26		$	0.29	$	0.35	$	0.94
Income per share from continuing operations, assuming dilution	$	0.04	$	0.25		$	0.28	$	0.34	$	0.90
Weighted average common shares outstanding		123,049		123,596			124,013		124,492		123,770
Weighted average common shares outstanding, assuming dilution		129,234		128,771			129,163		130,127		129,706

Quiksilver, Inc. 2008 Second Quarter Results
June 5, 2008
Page 10 of 10

Quarterly information related to 2007 operating segments, adjusted below to reflect the Rossignol Group and golf equipment operations as discontinued, is as follows:

	Quarter Ended												Year Ended
	January 31,			April 30,			July 31,			October 31,			October 31,
In thousands	2007			2007			2007			2007			2007
Revenues, net:
Americas	$	197,810		$	236,264		$	281,891		$	279,836		$	995,801
Europe		161,157			231,919			185,616			224,703			803,395
Asia/Pacific		51,113			50,974			59,897			81,080			243,064
Corporate operations		774			1,202			1,187			1,649			4,812
	$	410,854		$	520,359		$	528,591		$	587,268		$	2,047,072
Gross Profit:
Americas	$	84,308		$	97,828		$	117,951		$	117,934		$	418,021
Europe		86,250			125,190			103,770			127,713			442,923
Asia/Pacific		24,012			25,316			29,263			41,820			120,411
Corporate operations		510			1,048			1,095			1,037			3,690
	$	195,080		$	249,382		$	252,079		$	288,504		$	985,045
SG&A Expense:
Americas	$	74,495		$	76,712		$	78,340		$	82,210		$	311,757
Europe		66,616			77,358			76,437			96,456			316,867
Asia/Pacific		23,638			25,382			24,327			27,575			100,922
Corporate operations		11,789			15,374			15,219			10,335			52,717
	$	176,538		$	194,826		$	194,323		$	216,576		$	782,263
Operating Income:
Americas	$	9,813		$	21,116		$	39,611		$	35,724		$	106,264
Europe		19,634			47,832			27,333			31,257			126,056
Asia/Pacific		374			(66	)		4,936			14,245			19,489
Corporate operations		(11,279	)		(14,326	)		(14,124	)		(9,298	)		(49,027	)
	$	18,542		$	54,556		$	57,756		$	71,928		$	202,782