Volcom Inc., an edgy maker of clothes for surfers, skaters and wannabes alike, has filed for a public offering that could raise $86 million.
The Costa Mesa-based company is set to join a select group of publicly traded surfwear makers, including industry leader Quiksilver Inc. of Huntington Beach and Irvine’s Billabong USA, whose parent Billabong International Ltd. is publicly traded in its native Australia.
Most other surfwear makers are small and privately owned or have been sucked up in a wave of recent acquisitions by big apparel makers such as Nike Inc., Warnaco Group Inc. and VF Corp.
Volcom is looking to cash in on its heady growth. Last year, the company had sales of $113 million, which were up 49% from 2003. And Volcom is profitable, with net income of $24.6 million last year, up 72% from the year before.
The company’s been profitable since at least 2000, according to its filing with the Securities and Exchange Commission.
Volcom plans to use the proceeds of its offering to pay down debt and for marketing, expansion in Europe and other general purposes.
The move is a milestone for Volcom cofounder Richard Woolcott, who started the company along with Tucker Hall in 1991. Since then, Volcom, known for its edgy image, has grown into the middle tier of surfwear companies,itself an accomplishment in an industry known for hot brands that generate a buzz but little else.
Volcom’s initial offering filing doesn’t detail the company’s ownership. Hall is listed as an owner of 5% or more. Woolcott and his father, Ren & #233; Woolcott, also own sizable stakes, though percentages weren’t given.
Ren & #233; Woolcott also is chairman and president of Clarendon House Advisors Ltd., a privately held investment firm.
A former Quiksilver-sponsored surfer, Richard Woolcott, known as “Wooly,” has led Volcom since its start more than a decade ago. Before that, he worked in marketing at Quiksilver.
