VOLCOM OFF: Feeling pressure from a weaker consumer spending environment, Volcom Inc. lowered its fourth-quarter earnings outlook Wednesday. The company said it expects earnings of $67 million to $68 million, or 29 cents to 30 cents a diluted share, when it reports final results for the quarter ended Dec. 31. Previously, Volcom expected earnings between $70 million and $73 million, or 30 cents to 32 cents a diluted share. For the same period last year, the company reported earnings of $56.6 million, or 31 cents a diluted share. Volcom also lowered its expectations for fiscal 2007. The company said it now expects revenues between $266 million and $267 million, or $1.36 to $1.37 a diluted share, versus prior guidance of earnings between $270 million and $273 million, or $1.37 to $1.39 a diluted share. The company said the downgrade in expected results was attributable to low revenues in its domestic distribution channels and lower gross margins. Both factors were driven by the weaker-than-expected retail environment, the company said.
GOODY'S MONEY: Goody's Family Clothing Inc. received a $65 million investment from an entity affiliated with Prentice Capital Management LP, according to a statement from the company on Wednesday. Prentice was an existing sponsor of the company. At the same time the company announced that, as a result of the capital infusion, it has additional liquidity obtained by renegotiating a $235 million asset-based financing loan with The CIT Group Inc./Business Credit Inc., GMAC Commercial Finance, GB Merchant Partners and a consortium of other banks. Goody's said in a statement that the new lending agreements will give it enough capital to execute its business strategies moving forward. The company said it developed several business initiatives in 2007 that should lead to financial gains in 2008, including the launch of the Ashley Judd clothing line.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"