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Takeaway: There’s no denying that trends for Quicksilver are meaningfully better on the margin. But you know…that’s all that matters.

Editor’s Note: This is a brief excerpt from a research report published by Retail on March, 7 2014 at 6:47 AM. To learn more about subscribing to the Retail Pro, click here.
We Remain Quicksilver Bulls | $ZQK - roxy3

This Wednesday we said that we expected this to be a transition quarter for Quicksilver (ZQK). And we were cool with that. Well, two days later, that’s essentially what we got.

When we saw the headline that revenue had dropped more than expected in its fiscal first quarter, we viewed it as a slight net negative (due in large part to expectations being all over the place). And in reality, on an absolute basis, losing $0.10 on $393 million in revenue is nothing to be proud of.

Then we crunched the numbers, and we shifted our view on the event to neutral to slightly positive. But when we listened to the conference call, we viewed it as decisively positive.

So, what’s the deal?

The market might not agree for a day or two. But that doesn’t concern us.

We think this story is on track to redefine the business model and do what ZQK has not done in over five years: Grow consistently.

We Remain Quicksilver Bulls | $ZQK - ZQK sigma2

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