Quiksilver Finishes Fiscal Year With Record Earnings

COSTA MESA — Quiksilver Inc., a designer and distributor of beach and casual wear, said Wednesday that its net income increased a record 86% for the year because of demand for its products and lower expenses.

It was the second consecutive year that the company has reported record earnings.

The company said net income increased to $7 million for the fiscal year ended Oct. 31 from $3.8 million for 1988. Sales rose 46%, to $70.7 million, from $48.3 million for the previous year.

Net income for the fourth quarter more than doubled, to $1.6 million from $670,000 for the quarter in 1988. Sales rose 39%, to $15.9 million from $11.4 million.

Wall Street responded favorably to the report; the company’s stock gained $1.375 in trading on the over-the-counter market Wednesday, closing at $19.

John C. Warner, Quiksilver chief executive officer, said the good performance was the result of “continued strong demand for the company’s product line, improved gross profit margins and lower . . . expenses.”

Quiksilver designs, distributes and arranges for the manufacture of beachwear, ski wear and other casual sportswear under the its own label. Its clothing is primarily for young men and boys.

About 2,000 department stores, surf shops and other specialty stores carry the Quiksilver line.

Earlier this year, Forbes magazine ranked Quiksilver among the nation’s 200 best small companies. The rankings were based on average returns on equity over the past five years.