Costa Mesa-based Volcom Inc. offered no surprises with fourth-quarter and 2007 earnings, but did offer some mixed guidance for the current quarter.
The maker of edgy surf, skate and snow clothing posted fourth-quarter revenue of $69.1 million, up 22.1% from a year earlier. Profit declined 6.6% to $7.1 million.
On average, Wall Street was looking for earnings of $7.2 million. Sales beat forecasts.
The company posted 2007 sales of $268.6 million, up 30.9% from a year ago. Net income rose 16% to $33.3 million.
Volcom, which is buying San Clemente’s Electric Visual Evolution LLC for $25.3 million, lowered its outlook back in January, leaving little room for any surprises.
The clothing maker, which is weathering a retail slowdown, said it expects a first-quarter profit of $4.8 million to $5.1 million. Sales are forecasted to come in at $69 million to $70 million.
The net income forecast is below analysts’ expectations–on average Wall Street is expecting profits of $6.5 million and sales of $67.8 million.
The company said a decline in sales from Anaheim-based Pacific Sunwear of California Inc.–some 40% perhaps–is set to impact first-quarter earnings.
For 2008, Volcom said it expects sales of $339 million to $344 million. Profit should come in at $36.4 million to $37.1 million.
On average, Wall Street is eyeing net income of $36.7 million and sales of $326 million.
The company said its European operation, which now is fully up and running, will also contribute to 2008 earnings. It also said a positive winter season, both in the U.S. and Europe, is helping with sales.
Shares of Volcom were up 2.8% in afterhours trading on a market value of about $430 million.
