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Tiffany Montgomery
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More about Volcom's expanded distribution

By Tiffany Montgomery
February 22, 2008 6:39 AM

There was some information I missed in Volcom's conference call yesterday because of technical difficulties. The transcript is out this morning, so below are some more interesting details.


The company discussed its expanded distribution as it seeks to rely less on big retailers like PacSun. At the same time, CEO Richard Woolcott stressed the company's No. 1 initiative is to support specialty retailers and maintain strength at the core level as it opens new accounts such as Macy's, Dillard's and Sport Chalet.


New distribution

 

  • Currently, Volcom is in 106 Macy's West and Northwest stores with mens, boys and shoes. Volcom Girls opened at 80 Macy's stores at holiday.

 

  • Volcom boys is at 53 Dillard stores and the company is building the mens and girls business with them.
  • Volcom sees growth opportunity with this new distribution, including geographic expansion within the chains and selling more categories of Volcom goods within the stores.

 

  • Volcom opened 19 Sport Chalet doors in Southern California in the fourth quarter across all categories.

Volcom retail

 

  • Volcom opened three stores in 2007 to bring its total to 6 locations in the U.S.

 

  • The company will open four new stores in 2008 including in New York, Boulder and Waikiki. Volcom will also open a company-owned store in Europe.

 

  • New international locations include Tokyo and Thailand stores to be opened by a distributor; and licensees will open stores in Brazil, Indonesia and South Africa.

International

 

  • After two full quarters under Volcom's control, Volcom Europe has exceeded expectations.

 

  • The company plans to improve penetration in existing accounts by working with its distributor to add concept stores, racks and displays and increase marketing efforts.

 

  • Volcom believes the Europe business can be as large as the U.S. business.

 

  • The company may eventually bring Australia and Japan in-house.

 

  • The company is also investing in Asia and parts of South America.

Acquisitions

 

  • Volcom sees opportunity in certain areas of action sports that may not make sense for the Volcom brand but would make sense for the company as a whole.

 

  • With its recent Electric Visual acquisition, the company sees potential to expand into soft goods and accessories and that Electric can cross over into motocross and Nascar.

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