Volcom Q4 revenues grow 35.8% due to customer retention policy

15 Feb '06

3 min read

Designer, marketer of apparel Volcom Inc announced that for the fourth quarter ended December 31, 2005, total revenues increased 35.8 percent to $41.2 million, compared with $30.4 million in the fourth quarter of 2004.

Gross profit as a percentage of total revenues increased to 48.8 percent for the fourth quarter of 2005 from 47.8 percent in the fourth quarter of 2004.

Total revenues for the full year 2005 increased 41.3 percent to $160.0 million from $113.2 million in 2004.

Gross profit as a percentage of total revenues increased to 50.8 percent for 2005 from 48.6 percent in 2004.

"Volcom has become a premier international action sports brand, and their financial results for 2005 are testament to the strength of their company and their ability to remain connected to their core consumer base," said Richard Woolcott, Volcom's president and chief executive officer.

"They intend to continue this momentum by maintaining their focus on running the business and carefully executing their plan for growth in the US and abroad, while carrying on their commitment to staying true to the Volcom heritage."

Operating income for the fourth quarter of 2005 increased 45.7 percent to $9.3 million, compared with $6.4 million for the fourth quarter of 2004.

Operating margin increased to 22.5 percent for the fourth quarter of 2005 from 20.9 percent in the fourth quarter of 2004.

Considering the change in tax status described below, the company believes that evaluating operating income for quarter-over-quarter comparisons is more reflective of its performance than are net income comparisons.

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