Volcom Results in Line; Could Be Last With Pending BuyoutTuesday, May 3, 2011
Costa Mesa-based clothing maker Volcom Inc. reported a second-quarter profit in line with Wall Street expectations while revenue topped what analysts were looking for on average.
The results could be the last released by Volcom after word Monday that the company is being acquired for $608 million by France’s PPR SA, parent of Gucci, Puma and other brands.
The deal is expected to close in the third quarter.
With the pending deal, Volcom didn’t provide an outlook for the current quarter.
For the first quarter, Volcom reported a profit of $4.6 million, down 39% from a year earlier.
The reduced profit hit the mark on what analysts were looking for.
Revenue came in at $87.1 million, up 13% from a year earlier. The figure also topped the $85.7 million Wall Street expected.
Higher sales in the U.S. and Europe drove the gain.
Volcom makes clothes inspired by surfing, skateboarding, snowboarding, music and art.
The company is set to become part of PPR’s sports and lifestyle unit, dominated by Puma.
PPR, best known for luxury goods, is looking to build its sports and lifestyle unit into a “second pillar” after luxury goods for the company.