Quiksilver shares soar on 3Q profit beat

Quiksilver shares soar as costs cuts lead to 3Q profit beat

Associated Press

Quiksilver Inc.'s shares jumped Friday after the surf- and skate-inspired clothing company reported a third-quarter profit that topped estimates.

THE SPARK: Quiksilver reported late Thursday that it earned $12.6 million, or 7 cents per share, for the quarter that ended July 31. That compares with $10.4 million, or 6 cents per share, in the same quarter last year.

After adjusting for restructuring charges and other special items, it earned 9 cents per share and beat the 5 cents per share that analysts polled by FactSet were expecting.

Revenue increased 2 percent to $512.4 million on gains across its brands and in all its global markets. That fell short of the $528 million that analysts anticipated.

THE BIG PICTURE: Quiksilver, which owns Roxy, DC and its namesake brand, has been working to improve the popularity of its brands and said increased marketing has paid off. It also has cut staff and other expenses to lower its costs.

While the company gained traction in all its markets, Quiksilver and its peers continue to face a tough economy. This is particularly true in Europe, where the company had to do more discounting and the weak euro took a toll.

SHARE ACTION: Quiksilver's shares jumped more than 20 percent to $3.68 by midday Friday. Its shares have traded between $2.09 and $4.89 in the past 52 weeks. Shares bottomed out in midsummer and have gradually been recovering since then.

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