Quiksilver Shares Surge; DC Expanding into JCPenneyFriday, June 8, 2012
Shares of Huntington Beach-based Quiksilver Inc. were up 10% in midday trading a day after the action sports company said it narrowed its April quarter loss.
Quiksilver sells clothes, shoes and accessories inspired by surfing, skateboarding and snowboarding under core brands Roxy, DC Shoes and Quiksilver.
Quiksilver reported a $5.1 million loss during the April quarter, narrowed from an $83.3 million loss a year earlier.
Analysts on average expected a profit of $1.5 million.
Quiksilver saw April quarter revenue of $492.2 million, up 3% from the year-earlier period. Revenue was up 5% excluding the effects of exchange rates.
Analysts on average expected revenue of $495.9 million.
DC Shoes Inc., of Huntington Beach, was the company’s top performer for the quarter.
DC, with roots in skateboarding, marked an 11% increase in quarterly revenue—or 13%, assuming constant currency—to $131 million. The surge was attributed to growth in DC’s men’s, women’s, kids and footwear segments.
Plano, Texas-based department store operator J.C. Penney Company Inc. said last month that DC Shoes, along with a number of other brands, would play a part in the next phase of its turnaround that will emphasize big-name brands. JCPenney has so far focused on everyday low prices in place of most sales.
DC is expected to enter JCPenney stores in time for the back-to-school shopping season. The expansion into the department store chain is part of Quiksilver’s five-year plan for the brand that includes growing its sales to $1 billion.
DC had revenue for its year ended in October of $545 million, up 15% from the year-ago period.