Cost Cutting Leads To Investor Optimism For Quiksilver
One day after Quiksilver Inc. reported its “first quarterly loss in 15 years, investors pushed the [company’s] stock price up 8%” to $14.33 on Friday, according to Leslie Earnest of the L.A. TIMES. Analysts said that investors are “encouraged because [Quiksilver] is cutting costs associated with its flagging Rossignol division ... and even entertaining the possibility of selling the ski-equipment maker that it bought two years ago.” Quiksilver CEO Robert McKnight Jr. said, "We are looking at every possible alternative concerning the hard goods. Everything is on the table." L.A.-based Wedbush Morgan Securities analyst Jeff Mintz said, “I think there's a possibility they'll get rid of the business that's been dragging them down.” Earnest noted the “drag from Rossignol has been pronounced this year because of a miserable snow season.” Also, Quiksilver's Cleveland Golf division “has been struggling while its core apparel and shoe brands, Quiksilver, Roxy and DC, have sold well” (L.A. TIMES, 6/9). At presstime, shares of Quiksilver were trading at $14.23, down 0.70% from Friday’s close (THE DAILY).
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