Reassuring words from Quiksilver Inc. sent shares of the Huntington Beach-based surfwear maker up nearly 12% at the close of trading Wednesday.
The comments, conveyed by analyst Dorothy Lakner of CIBC World Markets, sparked the rally, according to the Associated Press.
Lakner said she came away from a meeting with Quiksilver executives in Las Vegas that reinforced views about the company’s core business and the integration of a big acquisition.
Wall Street has been worried about Quiksilver’s $300 million buy last year of France’s Skis Rossignol SA, which has been losing money and market share.
The company has been working to streamline and consolidate Rossignol’s operations.
“The meeting reinforced our view that the core business is humming and the Rossignol integration is proceeding on plan,” Lakner told AP.
The analyst attended Quiksilver’s presentation at the Magic apparel trade show in Las Vegas, one of the industry’s big yearly shows.
Quiksilver’s shares have lagged since the Rossignol buy. They’re off about 13% in the past six months. The company counts a market value of $1.8 billion.
