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.
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