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.
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