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The plan is to continue to invest in marketing initiatives, infrastructure and in creating the strongest product possible so the company will be well-positioned when the economy picks up.
If the economy gets worse in the next month or two, Volcom will adjust spending plans but "the No. 1 goal is to ride through the slow down and keep the ship healthy," said CEO Richard Woolcott, right.
Some interesting tidbits:
Fourth quarter: Revenue rose 22 percent to $69.1 million. Net income decreased 7 percent to $7.1 million
Full year 2007: Revenues rose 31 percent to $269 million. Net income rose 16 percent to $33.3 million
New initiatives for 2007 included launching girls swim, Creedlers, kids, the European operation and acquiring Electric Visual.
Total revenue - up 8 percent to $58.9 million
Mens - up 17 percent to $32.1 million
Girls - down 11 percent to $16.5 million, largely because of the changes at PacSun.
Boys/Kids - up 63 percent to $5.3 million
Snow - down 33 percent to $1.4 million. For the year, snow was below plan but up year-over-year 8 percent to $16.2 million.
Footwear - $1.1 million, down from $1.7 million the same period last year due to the move away from closed toe, vulcanized shoes.
Girls swim - $1 million
Revenue from Canada and Japan (included in U.S. revenues) - up 10 percent to $11.3 million
Revenue from five largest customers - down 6 percent to $25 million
Revenue from PacSun - down 15 percent to $14.4 million
Revenue from other accounts - up 23 percent to $33.2 million.
This is the first year Volcom has run the European operation itself so there are no year-over-year comparison figures.
Product revenue: $10.2 million
Mens - $6.1 million
Girls - $2.2 million
Boys - $1.8 million
U.S. gross profits as a percentage of sales were hurt in the fourth quarter by $6 million in product that Volcom sold to offprice channels at its cost or close to cost.
Gross profit: 43.4 percent, down from 47.2 percent from the same period last year.
Total Q1 revenue: up 36 to 38 percent to $69 million to $70 million.
Q1 earnings per share - 20 to 21 cents
FY 2008 revenue - $339 million to $344 million
2008 earnings per share estimate - $1.50 to $1.53