Quiksilver Surges After ResultsFriday, June 3, 2011
Shares of Huntington Beach-based Quiksilver Inc. jumped Friday, a day after the clothing maker reported better-than-expected results for the recently ended quarter.
Quiksilver’s shares were up 18% in afternoon New York trading to a market value of about $835 million.
The company makes clothes and accessories inspired by surfing, skateboarding and snowboarding.
On Thursday, Quiksilver beat analyst expectations for the three months through April with a $17.3 million profit, up about 10% from a year earlier.
Analysts on average expected a profit of $13.5 million.
Quiksilver also exceeded revenue forecasts.
The company reported revenue of $478 million for the three months through April, up 2% from a year earlier.
Analysts had expected revenue of $471.7 million.
Quiksilver revenue in its Americas division led gains for the recently ended quarter with a 5% increase from a year earlier to $210.7 million.
Revenue for the company’s European division fell 1% from a year earlier to $206.9 million. Sales in Quiksilver’s Asia/Pacific division also fell 1% to $58.1 million.
Since the start of the year Quiksilver has renewed its focus on marketing for its three strongest brands Quiksilver, Roxy and DC Shoes.
U.S. stores open at least a year saw double digit growth for the three months through April, which was the second consecutive quarter of double digit same-store sales growth for Quiksilver.
“The initiatives we've set into motion are gaining traction and we remain on track to successfully transition to stronger growth in the future,” said Quiksilver Chief Executive Bob McKnight.
The company didn't provide revenue guidance for the three months through July.
Quiksilver said earlier this year it expects revenue to be slightly above the $1.8 billion it reported last year for the 12 months through October.
The company also said in its full year guidance that it expects adjusted earnings before interest, taxes, depreciation and amortization to be roughly in line with the $204.4 million reported in 2010.