UPDATE 2-Quiksilver meets Street with adjusted earnings

(Adds byline, quotes from conference call, background)

By Alexandria Sage

LOS ANGELES, Sept 6 (Reuters) - Surfing-inspired apparel maker Quiksilver Inc. (ZQK.N) on Thursday posted a net loss, versus a year-ago net profit, due to charges for acquiring the rest of Roger Cleveland Golf Company.

Earnings excluding the charges met Wall Street analysts' average estimate, and the company reiterated its 2007 earnings outlook. It also said it was extending its Quiksilver brand to include a line of women's clothing.

The third-quarter net loss was $7.9 million, or 6 cents per share, compared with a net profit of $5.3 million, or 4 cents per share, a year earlier.

The company earned 2 cents per share excluding charges for acquiring the remaining interest in Roger Cleveland Golf Company that it did not already own. That matched Wall Street's expectations, according to Reuters Estimates.

Quiksilver, whose brands include Quiksilver, Roxy, DC Shoes and Rossignol, posted a 17 percent sales rise in the quarter to $612.8 million, above analysts' average expectation of sales of $568.9 million, according to Reuters Estimates.

Sales in the company's apparel and footwear business rose 20 percent in the quarter, driven by Quiksilver, DC Shoes and new retail store growth, said President Bernard Mariette.

"DC's growth has been nothing short of outstanding," Mariette said, adding that the brand, acquired in 2004, was projected to generate sales of $300 million this fiscal year.

Rossignol, which was acquired in 2005, has been a drag on profits as Quiksilver has integrated the equipment brand into its operations. A warm winter this past year also caused poor reorders, heavy markdowns and fewer orders for this upcoming season.

Today, preseason orders at Rossignol are down 18 percent compared with a year ago, better than the 20 to 25 percent decline the company had been projecting, executives said.

Quiksilver reiterated a fiscal 2007 outlook for earnings of 53 cents. Analysts, on average, are expecting earnings of 52 cents excluding items.

Also on Thursday, the company said it was extending its Quiksilver apparel brand to include a women's line that will cater to ages 18-24. To date, the Quiksilver brand has been geared to teen boys and young men, while the Roxy brand has focused on teen and college-aged girls.

"This is a very meaningful opportunity to grow our presence in the women's market around the world," Chief Executive Officer Bob McKnight said in a conference call with analysts.

The new line will be sold in the company's own retail stores, department stores and surf shops.

Shares of Quiksilver rose 11 cents, or nearly 1 percent, to $12.96 in extended trade after closing at $12.85 on the New York Stock Exchange. (Reporting by Alexandria Sage)