Shares of Huntington Beach-based Quiksilver Inc. rose nearly 8% on Wednesday after an analyst said the company’s strategy will help results.
The maker of surf, skate and snow clothes is set to report quarterly earnings on Thursday.
Lazard Capital Markets analyst Todd Slater wrote in a note Wednesday that the company’s strategy to focus on clothes rather than snow gear and golf clubs should help profits.
On Tuesday, Quiksilver completed its sale of Roger Cleveland Golf Co. to Japanese sporting goods retailer SRI Sports Ltd. for $132.5 million.
Selling Roger Cleveland Golf is part of Quiksilver’s strategy to get out of sports equipment.
“This sale represents the first in a series of positive moves, we believe, that will expand earnings, reduce debt and eliminate an overhang,” Slater wrote.
Slater said he expects the company’s core clothing brands,Quiksilver, Roxy and DC,to be strong in the recently ended quarter.
But he cautioned that results of French ski maker Rossignol could hurt earnings. Quiksilver acquired Rossignol in 2005.
The company is looking to sell off Rossignol and keep the name for clothes.
Shares closed up 7.9% with a market value of $1.4 billion.
