The big news for Quiksilver is that Kohl’s has agreed to be the sole retailer of the Hang Ten brand (which you might remember from the 80s). Quiksilver will be designing the new brand aimed at a younger audience and will launch in the spring of 2009 in over 240 stores.
Quiksilver has a growth rate of 13% over the next year. Q1 and Q2 were both profitable for the company, earning $.16 cents and $.29 cents per share respectively. This new contract bodes well for the company and you could see this stock double over the next 18 months as a result. Summer is always good for the company as it makes a lot of surf/skate/snowboard gear and clothing and most recently had sold off the floundering Rossignol brand it had purchased last year.
I like the new direction of the company and I’m long on the stock.
I own shares of ZQK.
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