May 2, 2010
Volcom first quarter results top estimates
May 2, 2010
April 29 (Reuters) - Volcom Inc's (VLCM.O) first-quarter results blew past its own and market estimates on strong margins, and forecast second-quarter sales largely above expectations, sending its shares up 6 percent after market.
The surfing-inspired apparel maker, which sells to mall-based retailers and specialty chains like Zumiez Inc (ZUMZ.O) and Pacific Sunwear of California Inc (PSUN.O), however, said it expects to post a loss 2 cents per share to a profit of 2 cents per share for the current quarter.
It also expects second-quarter revenue of $59 million to $62 million, while analysts were looking at revenue of $59.6 million.
Analysts on average were expecting a profit if 2 cents per share for the second quarter, according to Thomson Reuters I/B/E/S.
During the first quarter, gross margins grew 390 basis points to 54.2 percent.
"Our results for the quarter were stronger than we had anticipated, representing a solid start to the year and continued strength for both the Volcom and Electric brands," Chief Executive Richard Woolcott said in a statement.
For the first quarter, net income was $7.5 million, or 31 cents a share. Analysts on average had expected a profit of 19 cents a share.
Revenue came in at $77.4 million, topping estimates of $73.76 million.
Volcom shares rose 6 percent to $23.00 after the bell Thursday 29 April. They closed at $21.67 on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Gopakumar Warrier)
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