Volcom Inc. said first-quarter net income rose 78.5 percent, helping the action sports apparel and footwear vendor skate past Wall Street’s projections.
The Costa Mesa, Calif.-based firm posted profits of $7.5 million, or 31 cents a diluted share, for the period ended March 31, compared with income of $4.2 million, or 17 cents a share, in the year-ago quarter. Net revenues improved 13.3 percent to $77.4 million, from $68.3 million, a year earlier. Analysts polled by Yahoo anticipated earnings of 19 cents a share on revenue of $73.8 million.
Total revenue in the company’s U.S. segment, including sales from Canada, Japan, other international territories outside of Europe and branded retail stores, improved 13.7 percent to $48.2 million versus year-ago sales of $42.4 million. Revenues in Europe gained 8.8 percent, expanding to $23.6 million, compared with $21.7 million. Sales from Electric, the firm’s eyewear division, totaled $5.6 million, a 33.3 percent increase over last year’s sales of $4.2 million. Gross margin improved to 54.2 percent of sales versus 50.3 percent a year earlier.
On the company call, Richard Woolcott, Volcom’s chairman and chief executive officer, touted strong sales in key categories such as denim, boardshorts and outerwear, but admitted the junior business has been “challenged.”
“The bulk of our juniors business is still facing hurdles,” he said, adding that, coming out of the recession, the company is in “build-back mode.”
Within the next five years, he said the company’s goal is to achieve $500 million in revenue. Last year, Volcom posted sales of $280.6 million.
For the second quarter, the vendor expects per share amounts to range from a loss of 2 cents to a profit of 2 cents on net revenues of between $59 million and $62 million. Analysts are looking for earnings per share of 2 cents on sales of $59.6 million.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast