June 8 (Bloomberg) -- Quiksilver Inc., the maker of clothing for skateboarders and surfers, climbed the most in almost six months after avoiding a wipeout in its European sales.
Quiksilver, based in Huntington Beach, California, rose 12 percent to $2.74 at the close in New York trading, the biggest gain since Dec. 16. Volume of 2.39 million shares was almost double the three-month average.
Quiksilver is “quite proud” that its European unit posted second-quarter revenue growth in constant currency while rivals reported declines, Chief Financial Officer Richard Shields said yesterday on a conference call with analysts. The shares, which reached $4.74 in February, had declined as economic turmoil mounted in Europe, Andrew Burns, an analyst with D.A. Davidson & Co., said in an e-mail.
“The report wasn’t as bad as some had feared so it’s a bit of a relief rally,” said Burns, who is based in Lake Oswego, Oregon, and rates Quiksilver a buy. He projects the stock will reach $5 within 18 months.
Quiksilver yesterday reported a second-quarter loss, adjusted for some items, of 2 cents a share on revenue of $492.2 million. Analysts had estimated a 1 cent profit on sales of $495.9 million.
Pacific Sunwear of California Inc., an Anaheim, California-based retailer that specializes in surfwear, climbed 4.4 percent to $1.66.
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