Costa Mesa-based apparel designer Volcom Inc. reported strong fourth-quarter results but warned that spending on stores and a European expansion stands to impact profits for the current quarter.
For the fourth quarter, Volcom said sales grew 36% to $41.2 million. Operating income for the quarter rose 46% to $9.3 million.
Volcom said it’s spending money on a European and retail expansion, which could lower first-quarter profits below what Wall Street had expected.
The company said it could earn about $3 million in the current quarter, down from expectations of about $4.5 million.
Volcom’s shares were off more than 10% in afterhours trading.
Sales for the first quarter could be up about 26% from a year earlier to $40 million.
Volcom has been a Wall Street darling since going public in June. The company’s shares are up about 50% from their debut. Volcom counted a recent market value of $970 million.
