Shares of Costa Mesa-based clothing company Volcom Inc. opened up nearly 30% Thursday, a day after it reported big gains in first-quarter sales and profits and upped its outllook for the rest of the year.
The company also lowered its second-quarter outlook. But investors focused instead on Volcom’s upped projections for all of 2008.
Volcom has a market value of about $600 million.
For the recently ended quarter, Volcom’s sales rose 58.5% from a year earlier to $80.6 million, handily beating Wall Street’s expected $69 million.
Net income for the quarter rose 69% to $9.3 million. Wall Street had been expecting $4.8 million.
“It has been an exciting start to the year with our first quarter exceeding our expectations in nearly all aspects of our business,” said Richard Woolcott, Volcom’s chief executive.
Volcom makes clothes inspired by surfing, skateboarding, snowboarding and music.
For the current quarter, the company projects sales of $69 million to $70 million, versus the $71 million analysts had been expecting.
Profit could come in at $3.7 million to $4 million. Wall Street had been expecting $5.8 million.
Part of the lower outlook was driven by a shift in shipments to the first quarter instead of the second, the company said.
But the company upped its guidance for the rest of year.
For 2008, it said it now sees sales of $343 million to $347 million, up from an earlier forecast of $339 million to $344 million.
Profit for the year could come in at $36 million to $37 million, up from $35 million to $35.6 million.
Analysts had expected a profit of $35 million on sales of $339.4 million.
