Jul 30, 2009
Volcom posts surprise profit; sees weak third quarter
Jul 30, 2009
July 30 (Reuters) - Surfing-inspired apparel maker Volcom Inc (VLCM.O) posted a surprise quarterly profit, helped by tighter cost controls, but it forecast third-quarter profit below Wall Street estimates due to persistent weakness in consumer spending.
Volcom menswear summer 2009
The Costa Mesa, California-based company said it expects to earn 35 cents to 38 cents a share for the third quarter. Analysts were looking for 46 cents, according to Reuters Estimates.
Second-quarter net income fell to $872,000, or 4 cents a share, from $4.8 million, or 20 cents a share, a year ago.
Revenue for the company, which sells clothes for action sports like skateboarding, surfing and snowboarding, dropped 25 percent to $54.2 million.
Analysts on average expected a loss of 2 cents a share, on revenue of $49.7 million.
Mall-based retailers from department stores to specialty chains like Zumiez Inc (ZUMZ.O) and Pacific Sunwear of California Inc (PSUN.O) that carry Volcom's clothing have been hurt by a sluggish sales climate, as consumers remain frugal and buy fewer items.
Shares of Volcom closed at $13.21 Thursday 30 July on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Deepak Kannan)
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