Volcom Inc. reported increased third-quarter profits Thursday, but lowered its full-year guidance because of a wilting retail environment.
The Costa Mesa, Calif.-based board sports apparel firm posted a 12.1 percent gain to $16.3 million, or 67 cents a diluted share, from $14.5 million, or 59 cents a share, a year ago. The consensus estimate among analysts was for earnings per share of 64 cents.
Revenues in the quarter ended Sept. 30 grew 22.7 percent to $111.7 million, from $91 million in last year’s quarter.
The company said the weakening U.S. retail market and overall global economy caused it to lower its full-year guidance. For fiscal 2008, Volcom now expects EPS of $1.42 to $1.44 on consolidated revenues of $333 million to $335 million. In July, the firm estimated full-year EPS of $1.50 to $1.53 on consolidated revenues of $344 million to $347 million.
Richard Woolcott, chairman and chief executive officer, said, “Managing our business with discipline, commitment and focus is essential during these times of economic uncertainty, and we strongly believe that our current position as an industry leader and our healthy balance sheet will empower Volcom over the long term.”
For the first three quarters of fiscal 2008, Volcom profits grew 16.2 percent to $30.5 million, or $1.25 a share, compared with $26.2 million, or $1.08 a share, last year. Revenues for the nine months ended Sept. 30 climbed 32.6 percent to $264.7 million, from $199.5 million.