Quiksilver Sees Mercury Rising Abroad

Quiksilver (NYSE: ZQK  ) saw revenues soar 14% to $503.3 million in the third quarter as more emerging and developing markets jump on board the surf brand.

CEO and President Robert McKnight said the retailer's merchandise and brands are "resonating with consumers around the world despite global economic pressures."

Net income attributable to the company was $10.4 million, or $0.06 per share, compared with $12.5 million, or $0.08 per share, during the same quarter a year ago.

The company's Quiksilver, Roxy, DC, Lib Tech, and Hawk brands sell surfing, skateboarding, and snowboarding gear and banks on a primarily young and athletic audience.

Other retailers riding the teen wave include Zumiez (Nasdaq: ZUMZ  ) and Pacific Sunwear (Nasdaq: PSUN  ) , both of which are predicting a slow third quarter in the face of a frail economy. Athletic company Zumiez reported a 14.9% jump in sales to $112.2 million in the second quarter, while California-inspired retailer Pacific Sunwear saw sales sink to $214.9 million from $218.3 million.

Despite Hurricane Irene's destructive ride up the Atlantic Ocean, the Quiksilver Pro New York surf competition in Long Beach, N.Y., is expected to take place this month as planned.

Quiksilver's revenues in the Americas increased 11% to $260.2 million. As measured in U.S. dollars, European revenues increased 16% to $176.4 million, and Asia/Pacific revenues increased 20% to $65.5 million.

California-style beach brands like Quiksilver, Pacific Sunwear, and Hollister by Abercrombie & Fitch (NYSE: ANF  ) tend to perform well in emerging markets because they're not always accessible and because of the appeal of emulating American teen fashion and lifestyle.

Quiksilver had two notable openings during the quarter, including a Boardriders Store in Ericeira, Portugal, that includes the country's largest skate park, and the DC Embassy showroom in Barcelona, Spain, that houses its growing product line of shoes and clothes for young men and juniors.

The brand caught a wave during its third quarter when surfing icon and Quiksilver spokesman Kelly Slater won the U.S. Open of Surfing in Huntington Beach, Calif.

If none of this gives you the itch to buy, it may still be worthwhile to keep an eye on Quiksilver, Zumiez, or Pacific Sunwear. You can add any of these stocks to your Foolish watchlist by clicking the "+" icons above. Don't have a watchlist yet? Set one up today for free.

Fool contributor Tierney Plumb holds no positions in any of the stocks mentioned. Motley Fool newsletter services have recommended buying shares of Zumiez. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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