Quiksilver Shares Fall On Weak 3Q Profit

NEW YORK (AP) — Shares of Quiksilver Inc. dropped 18 percent on Friday, a day after the clothing and sporting goods maker said its fiscal third-quarter profit fell by more than half on weak sales.

Late Thursday, the Huntington Beach, Calif.-based retailer said quarterly profit fell 53 percent as sales fell 11 percent. In a statement, CEO Robert McKnight Jr. said the company was changing its cost structure amid a "very challenging" retail environment.

In a client note on Friday, Baird analyst Mitch Kummetz said Quiksilver "seems to be getting the financial side of its business in order," though he said its financial situation is "far from ideal."

However, he said Quiksilver continues to struggle with its operations.

"Much of this can be attributed to the environment as a whole, but the environment isn't entirely to blame for weakness in Roxy and some recent softness in DC Shoes," Kummetz said. Roxy and DC Shoes are two Quiksilver brands.

He kept his "Neutral" rating on the stock and cut his price target by $1 to $3.

Shares fell 52 cents, or 18.2 percent, to $2.34 in afternoon trading. The stock has traded between 80 cents and $8.49 over the past year.