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Volcom Q2 revenues shoot up 25%

27
Jul '07

Volcom Inc announced that for the second quarter ended June 30, 2007, total revenues increased 25% to $57.7 million, compared with $46.1 million in the second quarter of 2006.

“We continue to see strong demand for the Volcom brand across all channels of distribution,” said Richard Woolcott, Volcom's president and chief executive officer. “Our other key focus has been our European operations that are now up and running. We believe we are on track for a solid year.”

Gross profit as a percentage of total revenues for the second quarter of 2007 was 48.2%, compared with 49.8% in the second quarter of 2006, primarily reflecting initial shipments to Europe that contained low margin sample product.

Selling, General and Administrative expenses for the quarter were $18.9 million versus $13.2 million in the comparable period last year as the company continued its investment in building its European infrastructure to take direct control of the brand in the region in the second half of the year.

Operating income for the second quarter of 2007 was $8.8 million, compared with $9.7 million for the second quarter of 2006. Operating margin was 15.3% for the second quarter of 2007, compared with 21.0% in the second quarter of 2006.

As previously reported, the company incurred pretax losses related to its recently established European operations of approximately $2.4 million in the second quarter, equal to approximately $0.06 per diluted share.

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