First-quarter profits at Volcom Inc. dropped by more than half, the company said Thursday.
The boardsports apparel maker beat Wall Street estimates, but tried to manage expectations for its current quarter.
In the three months ended March 31 profits at the Costa Mesa, Calif.-based firm declined 54.8 percent to $4.2 million, or 17 cents a diluted share, from $9.3 million, or 38 cents a share, a year ago.
Sales in the quarter fell 15.1 percent to $67.9 million from $80 million in the comparable period.
On average, analysts polled by Yahoo Finance had estimated earnings per share of 13 cents on revenues of $63.4 million.
Volcom’s sales in the United States, Canada and Japan fell 13.8 percent to $42.4 million in the quarter, matched by a 13.8 percent drop in European business to $21.7 million. Sales in its Electric eyewear unit fell 31.6 percent to $4.2 million.
On a conference call with investors Thursday, chairman and chief executive officer Richard Woolcott said that the first quarter was better than the company had expected, but that there might be something of a “revenue void” in the current quarter.
“Now that we are in Q2, we are experiencing the full effects of last year’s financial meltdown,” Woolcott said. “For Volcom, we are viewing [the second quarter] somewhat as a transition quarter where several elements come to play.”
He added that many retailers were at a standstill when it came to pre-booking summer orders last October and November at the height of the financial crisis and many are now booking this year’s back-to-school orders later in the summer. He said he thought the firm could make up the revenues in the second half of the year.
The company said it expects second quarter results to range between a 3-cent loss or break even on a per share basis on revenues between $47 million and $50 million.
Before the after-market announcement, shares of Volcom closed trading at $13.49, down 15 cents, or 1.1 percent.
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