US: Volcom lowers guidance despite 43% Q3 profit leap
Youth culture brand Volcom has announced a boost to its third quarter revenue and income, but cut annual revenue guidance ahead of a challenging final quarter.
Volcom said that total revenues increased 49% to $91.0m during Q3, as net income for the quarter totalled $14.5m, up 43% from $10.2m in the same period last year.
For the 2007 fourth quarter, the company currently expects revenues to be approximately $70m to $73m, reflecting general caution by retailers due to the overall economic environment and slower than projected sales of outerwear as a result of a challenging 2006 snow season. Further to this, Volcom has changed its 2007 revenue guidance to $270-$273m, an increase of 31% to 33% compared with original guidance of 34% to 36% growth.
"Our results for the quarter and year-to-date continue to demonstrate the strength of the Volcom brand and the success of our growth initiatives," said Richard Woolcott, Volcom's president and chief executive officer. "We intend to continue to grow the Volcom brand through an emphasis on our core retailers, team riders, worldwide events and film and music initiatives, which all serve to reinforce our commitment to the boardsport community."
Woolcott noted that Volcom's Q3 revenue growth included approximately $26m attributable to the company's European operations.
Clothing maker Volcom Inc has posted a 6.6% fall in fourth quarter profit after off-price sales were greater than expected due to a soft retail environment....
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