Shares of Huntington Beach-based Quiksilver Inc. were up nearly 10% in early afternoon New York trading a day after posting results that showed strong clothing sales.
For the three months ended Jan. 31, clothes sales rose 19% to $500 million.
Clothes sales were “amazingly strong given the environment, a testament to the strength of the portfolio,” Brad A. Stephens, a Morgan Keegan & Co. analyst, wrote in a note to investors, according to an Associated Press report.
Investors jumped on the encouraging clothes sales and looked past Quiksilver’s slumping ski and snowboard business.
Quiksilver has a market value of about $1.1 billion.
The winter sports business stems from Quiksilver’s 2005 buy of France’s Skis Rossignol SA, which has been a drag on the company.
For the recently ended quarter, Quiksilver lost $14.9 million, excluding results from the company’s golf gear business that was sold off last year. Analysts had expected a loss of $12.5 million.
The company said it was committed to “reduce or eliminate” its winter sports equipment business.
“At this point we’re thrilled the core apparel business is thriving and we’d be happy with the Rossi loss going away and the working capital freed-up,” analyst Stephens said.
