Shorebreak Hotel as a venue for industry events. Cinematographer Louie Schwartzberg's "Moving Art Retreat" in June at Turtle Bay Resort. Details on Industry Insight.
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