Costa Mesa-based clothing maker Volcom Inc. reported a surprise second-quarter profit Thursday but offered a forecast for the current quarter that was below Wall Street expectations.
The company, which makes clothes inspired by skateboarding, surfing and music, reported a second-quarter operating profit of $504,000, down more than 90% from a year earlier.
The profit surprised Wall Street, which was expecting an operating loss of $218,000.
Volcom’s sales for the quarter also surpassed expectations, at $54.2 million, which was down 25% from a year earlier but better than the $49.7 million Wall Street was looking for.
Investor reaction was muted with Volcom’s shares off slightly in afterhours trading on a market value of $320 million.
The company, which is battling the worst retail downturn in recent memory, was cautious about the current quarter.
For the third quarter, Volcom said it projects a profit of $8.5 million to $9.2 million.
Analysts had been expecting a profit of $11 million.
Sales for the quarter are seen coming in at $82 million to $85 million, versus Wall Street’s forecast of $93 million.
Volcom continues to see business shrink with Anaheim-based Pacific Sunwear of California Inc., the largest seller of clothes inspired by California fashions.
Pacific Sunwear, which is struggling with its own downturn, is cutting back on selling Volcom clothes as it looks to carry fewer clothes overall and sells more clothes at a discount, according to Volcom.
