Shares of surfwear maker Quiksilver Inc. rose 7% Friday after the company posted big sales and profit gains in the first quarter and raised its expectations for 2005.
The Huntington Beach-based surfwear maker said late Thursday that its operating income in the quarter ended Jan. 31 rose 24% to $23.4 million, versus a year earlier. Sales in the period jumped 34% to $342.9 million.
Pacific Growth Equities upgraded Quiksilver shares to “overweight” from “equalweight.” The apparel maker’s shares were up 7% to $35 in midday trading Friday.
Quiksilver said it now expects to post net income of at least $95 million this year, up 3% from a prior estimate. Sales are expected to be $1.5 billion this year.
The company reported that sales in its Americas region rose 29% in the quarter, with European revenue rising 25%, aided in part by a weak U.S. dollar. Without the effect of a falling dollar, Quiksilver’s European sales were up 16%.
The company also got a sales boost last year from its DC Shoes unit, which Quiksilver bought for $87 million early last year.
