Long/short equity

Quiksilver, Inc: From Promise To Delivery

Choppy 2Q2013: Quiksilver (NYSE:ZQK) faced headwinds in 2Q2013, including continued weakness in the Eurozone, a delayed tax refund cycle in the U.S., plummeting retail trends in the U.S. due to difficult weather conditions, and, internally, the weakness in the DC brand of ZQK. These elements are expected to rub-off on the company's top-line; however, gross margin and selling, general, and administrative expenses are not likely to be adversely impacted.

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The initial stages of turnarounds are usually messy; however, that does not impact the long-term plan of value creation. This quarter appears to have marked the unofficial transition of the ZQK turnaround from promise to delivery. SAP implementation has been carried out successfully. SG&A expenses (as...

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