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What: Shares of clothing maker Quiksilver (NYS: ZQK) were flying off the shelves today, gaining as much as 22% on a strong earnings report.
So what: The surf-inspired apparel company delivered an adjusted profit of $0.09 a share, well ahead of analyst estimates of $0.05 per share. Perhaps equally telling, though, was that revenue grew just 2% to $512.4 million, short of the Street's expectations of $528 million.
Now what: Despite today's huge bounce, this is still an ailing brand. Shares of Quiksilver, which also owns the Roxy and DC brands, have fallen from as high as $16 in 2005 to less than $4 today, and turnarounds tend to be difficult in the fickle fashion industry. The company has been investing more money in marketing and has lowered expenses by cutting back on staff, but I'd like to see more growth in the top line before I get on board.
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The article Why Quiksilver Shares Bounced originally appeared on Fool.com.
Fool contributorJeremy Bowmanholds no positions in the companies in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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