Volcom achieves solid revenue growth in 2007

22 Feb '08

3 min read

Operating income for 2007 increased 16.1% to $50.6 million, compared with $43.6 million for 2006. Operating margin was 18.8% for 2007, compared with 21.2% in 2006.

Net income for the fourth quarter of 2007 decreased to $7.1 million, or $0.29 per diluted share, compared with $7.6 million, or $0.31 per diluted share for the fourth quarter of 2006. Net income for the full year 2007 increased 16% to $33.3 million, or $1.37 per diluted share. This compares with $28.7 million, or $1.18 per diluted share in 2006.

2008 Financial Outlook:
Given the company's current visibility into its business in 2008 amid the present soft retail environment, Volcom expects total consolidated revenue of between $339 million to $344 million.

This estimate includes the financial contribution from the acquisition of Electric Visual Evolution in January, as well as a full year's contribution from the company's European operation, which was up and running at full capacity in the third quarter of 2007. Earnings per diluted share are expected to be in the range of $1.50 to $1.53. As previously reported, it is anticipated that Electric will be earnings neutral to Volcom in 2008.

For the 2008 first quarter, the company anticipates total consolidated revenues of approximately $69 million to $70 million, representing an increase of approximately 36% to 38%. Fully diluted earnings per share are expected to be in the range of $0.20 to $0.21.

Volcom Inc

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