Quiksilver's Stock Rallies After Narrower-than-expected Loss

Shares of Quiksilver Inc. rallied 6.5% in after-hours trade Tuesday, as the outdoor sports apparel maker's narrower-than-expected fiscal first-quarter loss overshadowed a downbeat sales outlook. For the quarter ended Jan. 31, the net loss from continuing operations was $18 million, or 11 cents a share, compared with a loss of $22 million, or 13 cents a share, in same period a year ago. That beat the FactSet consensus loss estimate of 13 cents a share. Revenue declined to $340.9 million from $394.9 million, compared with the FactSet consensus of $339 million, as same-store sales from company-owned retail stores fell 3%. Gross margin fell to 49.7% from 50.8% as result of increased discounting, unfavorable currency movements and higher distribution costs. For the second quarter, the company expects revenue of $340 million, below that the FactSet consensus of $369 million, and gross margin of 48%. The stock has dropped 23% so far this year, while the S&P 500 has gained 0.7%.