Volcom Up on Results, Upbeat Sales Forecast

Costa Mesa-based clothing maker Volcom Inc.’s shares were up Friday, a day after the company reported better than expected quarterly results and offered a sales forecast that at the high end surpassed what Wall Street had been expecting.

Volcom’s stock was up about 9% in afternoon New York trading to a market value of about $580 million.
On Thursday, Volcom reported strong results for the three months through March, with a profit of $7.5 million, up 78% from a year earlier and topping the $4.6 million expected on average by analysts.

Sales came in at $77.4 million, up 13% and exceeding the $73.8 million expected by Wall Street.

“Our results for the quarter were stronger than we had anticipated,” Chief Executive Richard Woolcott said.
Volcom offered a slightly mixed outlook for the current with a higher sales forecast but a warning of a possible loss.

The company said it expects sales of $59 million to $62 million, which at the high end topped the $59.6 million analysts had been looking for.

Volcom forecast a loss of $484,000 to a profit of $484,000. Analysts had been looking for a profit of $484,000.
Investors shrugged off the prospect of a potential loss.

Volcom makes clothes inspired by surfing, skateboarding, snowboarding, art, music and film that are sold in mall stores, surf shops and boutiques.

Click HERE for full article.

Click HERE for more information on Volcom.