Quiksilver Shares Decline Sharply

Quiksilver Inc.’s shares fell 16% after the world’s largest maker of surf apparel warned that its earnings for the fiscal fourth quarter will fall below previous estimates.

After sinking to a 52-week low of $14.24 earlier in the session, the stock closed at $15.90, down $3.12, on the New York Stock Exchange.

Earnings in the quarter ending Oct. 31 are expected to be 30 cents to 32 cents a share on sales of $175 million to $185 million, the Huntington Beach-based company said late Thursday. Analysts had estimated earnings of 48 cents a share, according to a poll by Thomson Financial/First Call.

Retailers, struggling in the sluggish U.S. economy, are ordering merchandise closer to the time they need it, Wells Fargo Van Kasper analyst Jennifer Black said.

“They overestimated what demand would be,” said Black, who has a “strong buy” rating on the stock but doesn’t own any shares. “But they’ll be back up on their board again soon.”