Volcom Revenues Up 13% In Q1

Hey, look: Volcom made boat loads of money in Q1. In fact, total consolidated revenues were $77.4 million with $42 million of that passing through as gross profit. Hot damn. It appears there’s a future in marking up China products. Q1 was so good that even CEO Wooly was surprised.

“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,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “Combined with great product, focused marketing and solid distribution, we believe we are well positioned to capitalize on the many opportunities before us and pave the way for continued growth and success.”

Here is our favorite stat: “At March 31, 2010 the company had cash, cash equivalents and short-term investments totaling $109 million, and no long-term debt.” Read it again: no long-term debt.

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Volcom Reports Financial Results for 2010 First Quarter

For the 2010 first quarter, total consolidated revenues were $77.4 million, compared with $68.3 million in the first quarter of 2009. Total revenues in the company’s U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the company’s branded retail stores, were $48.2 million, compared with $42.4 million in the prior-year period. Total revenues in the company’s Europe segment were $23.6 million, compared with $21.7 million in the same period in 2009. Total revenues in the company’s Electric segment were $5.6 million, compared with $4.2 million in 2009.

“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,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “Combined with great product, focused marketing and solid distribution, we believe we are well positioned to capitalize on the many opportunities before us and pave the way for continued growth and success.”

Consolidated gross profit for the 2010 first quarter was $42.0 million, equal to 54.2% of total revenues, compared with $34.4 million, equal to 50.3% of total revenues, in the first quarter of 2009.

Selling, general and administrative expenses on a consolidated basis were $31.0 million in the 2010 first quarter versus $28.0 million in the comparable period in 2009.

Net income for the 2010 first quarter was $7.5 million, equal to $0.31 per diluted share, compared with $4.2 million, or $0.17 per diluted share, in the first quarter of 2009

At March 31, 2010 the company had cash, cash equivalents and short-term investments totaling $109 million, and no long-term debt.

2010 Second Quarter Financial Outlook

For the 2010 second quarter, the company currently expects total consolidated revenues of approximately $59 million to $62 million and per share amounts to range from a loss of $0.02 to earnings of $0.02.

Conference Call Information

The company will host a conference call today at approximately 4:30 p.m. ET to discuss its financial results and outlook in further detail. The conference call will be available to interested parties through a live audio Internet broadcast at www.volcom.com. A telephone playback of the conference call also will be available through 11:59 p.m. ET, Thursday, May 6. Listeners should call (877) 941-6009 (domestic) or (480) 629-9770 (international) and use reservation number 4282599.

About Volcom, Inc.

Volcom is an innovative designer, marketer and distributor of premium quality young mens and womens clothing, accessories and related products. The Volcom brand, symbolized by The Stone, is athlete-driven, creative and forward thinking. Volcom has consistently followed its motto of “youth against establishment,” and the brand is inspired by the energy of youth culture. Volcom branded products are sold throughout the United States and internationally. Volcom’s news announcements and SEC filings are available through the company’s website at www.volcom.com.