Why Quiksilver Shares Sped Higher

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What: Shares of apparel maker Quiksilver (NYS: ZQK) are speeding higher by as much as 13% after the company reported second-quarter earnings and narrowed its net loss from a year ago.

So what: Revenue inched higher by 3% to $492.2 million, which resulted in a net loss of $5.1 million, or $0.03 per share. Those results were actually shy of Street estimates, and the company said that higher costs and regional uncertainties, particularly in Europe, held back its results.


Now what: CEO Robert McKnight, Jr. said the company was "turning the page" on a challenging first half of the year where gross margins were low, but expects the second half of the year to improve. The back-to-school season typically bodes well for its DC brand, and Quiksilver expects to reduce inventory levels. Comparable-store sales grew 6% worldwide, and online sales continued to grow.

Interested in more info on Quiksilver? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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