Steep sales declines lowered Volcom Inc.’s second-quarter earnings but did not result in the loss Wall Street had predicted.
For the three months ended June 30, profits at the Costa Mesa, Calif.-based surf brand fell 82 percent to $872,000, or 4 cents a diluted share, from $4.9 million, or 20 cents a share, in the 2008 period.
Revenues in the quarter fell 25.2 percent to $54.2 million from $72.5 million in the comparable period.
On average, analysts polled by Yahoo Finance had expected a loss per share of 1 cent on revenues of $49.7 million.
Chairman and chief executive officer Richard Woolcott said the company has had to face both retailers and consumers who have become more conservative in their buying habits.
“We are now exactly a month into the third quarter and, as expected, it’s still tough out there,” Woolcott said on a call with investors. “Like the rest of the retail industry, we are ready for economic conditions to improve and are indeed bumping along at what we believe is the bottom.”
The company also looked to manage its third-quarter outlook. Volcom said it expects earnings per share in the current period to be between 35 cents and 38 cents on revenue between $82 million and $85 million. Before the announcement analysts had estimated third-quarter EPS of 46 cents on $93.1 million in sales, on average.
For the first six months of fiscal 2009, Volcom’s net income shed 64.1 percent to $5.1 million, or 21 cents a share, versus 14.2 million, or 58 cents a share, a year ago.
Sales in the first half dropped 19.9 percent to $122.5 million from $153 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