Volcom Inc announced that total revenues for the fourth quarter ended December 31, 2007 increased 22.1% to $69.1 million, compared with $56.6 million in the fourth quarter of 2006. Total revenues for the full year of 2007 increased 30.9% to $268.6 million from $205.3 million in 2006. These reported results are in line with the company's revenue and earnings preview issued on January 16, 2008.
“Last year was an important year for Volcom,” said Richard Woolcott, Volcom's president and chief executive officer. “We achieved solid revenue growth of approximately 31%, driven by great product, diversified distribution and the successful launch of our new European operation. We kicked off 2008 with the acquisition of Electric Visual, one of the hottest eyewear brands in action sports, and we are executing our plan for diversification and growth in 2008 and beyond.”
In the 2007 fourth quarter, gross profit as a percentage of total revenues was 43.4%, compared with 47.2% in the fourth quarter of 2006, primarily reflecting greater than expected off-price sales due to a soft retail environment during the quarter. For the year, gross profit as a percentage of total revenues was 48.4%, compared with 49.7% in 2006.
Operating income for the fourth quarter of 2007 decreased 8.3% to $10.7 million, compared with $11.7 million for the fourth quarter of 2006. Operating margin for the fourth quarter of 2007 was 15.5%, compared with 20.6% in the fourth quarter of 2006.