First-quarter profits at Volcom Inc. dropped by more than half.
The board-sports apparel maker beat Wall Street estimates, but tried to manage expectations for the 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 the 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 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 many retailers were at a standstill when it came to prebooking 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 breakeven on a per share basis on revenues between $47 million and $50 million.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)