Despite Troubled Economy, Quiksilver Surfs Past Estimates

	Surfing's Popularity Means Good Times For Quicksilver

Business "is going so well" for CA-based surfwear manufacturer Quiksilver that the company yesterday beat Q3 earnings estimates by $0.03 per share, according to Tiffany Montgomery of the ORANGE COUNTY REGISTER. Montgomery: "Net income and sales are up, inventories are lean, European sales are booming and orders for holiday lines are strong. Quiksilver has also gotten a boost from the shift in popularity from skateboarding to surfing brands." Quiksilver Chair & CEO Robert McKnight Jr., on the earnings: "We are exceptionally pleased." Wedbush Morgan Securities analyst Mitch Kummetz, on Quiksilver: "These guys are definitely in their sweet spot right now." Net income for Q3 ending July 31 rose 11% to $8.8M, compared with the same period last year, and sales increased 12% to $173.9M. Sales in the U.S. rose 5.7% to $107.3M while European sales increased 24% to $66.6M. Orders for upcoming holiday lines rose 18%. Quiksilver Exec VP Marty Samuels said that to "keep momentum, the company will increase advertising in national magazines, and on MTV and local cable channels" (O.C. REGISTER, 9/13). At presstime, shares of Quiksilver were trading at $24.10, even from yesterday's close.