Shares of Huntington Beach-based Quiksilver Inc. rose more than 8% Friday, a day after the surfwear maker reported results that analysts interpreted as good news.
Quiksilver said Thursday its profit for the quarter ended April 30 fell on costs from its buy last year of France’s Skis Rossignol and some weakness in Asia.
The company’s operating profit was $18.7 million in the quarter, down from $54.1 million a year earlier. Sales rose 23% to $516.9 million, compared to a year ago. The results were in line with expectations.
Even with the lower profits, analysts said they were encouraged by Quiksilver’s progress on cutting costs at Rossignol.
“Most of the integration work for this year is done,” Prudential Equity Group said in a client note. “Clearly management has taken significant costs out of the business.”
Quiksilver also reaffirmed its financial targets for the year, which analysts took as a good sign.
