Goldman Sachs Comments on Quiksilver's (ZQK) Q2

Quiksilver (NYSE: ZQK) stock declines post-market Monday after reporting Q2 results below consensus estimates. Analyst Taposh Bari of Goldman Sachs commented with initial reaction to Quiksilver's earnings.

"Results point to a sharp divergence between ZQK's DTC and wholesale channels. DTC continues to perform well with retail SSS +1% and e-commerce up +23%. Wholesale, particularly in developed markets (US, Western Europe), is facing secular challenges presented by quicker turning/sharper priced vertical retailers (i.e., fast fashion). These challenges are compounded by the fact that poor near-term sell-through is deterring Fall 2014 sell-in (of new merchandise with support of increased marketing spending)," said Bari.

"While the path to recovery appears delayed, we believe ZQK has the proper tools and strategy in place to stem the aforementioned cyclical and secular challenges in wholesale while continuing to mix the business in favor of healthier DTC and emerging market channels," added the analyst.

For an analyst ratings summary and ratings history on Quiksilver click here. For more ratings news on Quiksilver click here.

Shares of Quiksilver closed at $5.79 yesterday.

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