ICR Xchange Summary: Volcom

adamsullivan

January 14 2009
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Today, the annual ICR Xchange conference was held in Dana Point, California, at the luxurious St. Regis Monarch Beach Resort. Transworld Business was on-site and sat in to a few of the summaries that were pertinent to our industry. Companies provided some information on how 2008 went, and their focuses and predictions for 2009. Here’s a list of the highlights:

There’s not a lot changing for Volcom in 2009. CFO Doug Collier took the podium, explaining that CEO Richard Woolcot had attended the Zumiez 100k party the night before.

· Volcom will have a continued focus on the core, with their “Stone Age” and “V-Co. Logical” lines.

· It was probably the only presentation to tout their “Permanent connection to customers” with a slide dedicated to various Volcom stone tattoos.

· According to the slide from their presentation, Volcom’s revenue has been on a steady climb, up 33% from 07 to 08.

2002: $57.1 million

2003: $76.3 million

2004: $113.2 million

2005: $160 million

2006: $205.3 million

2007: $199.5 million

2008: 264.7 million

· For the first 9 months of 2008, this is the revenue by operating segment breakdown:

U.S.: 69% ($182 million)

Europe: 23% ($62 million)

Electric: 8% ($20 million)

And for the same time period, here is the consolidated revenue breakdown:

Mens: $126 million (up 33% from 2007)

Girls: $64 million (up 9% from 2007)

Snow: $23 million (up 11% from 2007)

Electric: $20 million

Boys: $16 million (up 25% from 2007)

Swim: $6 million (up 113% from 2007)

Foot: $5 million (down 2% from 2007)

Other: $2 million

· Volcom’s net income for YTD 2008 is $30.5 million, up more than $4 million from last year

· Moving forward, the story here is to stay the course in the States, and to grow the brand in Europe. The new HQ in Anglet is up and running, and the strategy is to capitalize on the brand awareness they currently have. Volcom will also be setting up a UK office and London Volcom store. Collier says that decisions on distributors will be made on a country-by-country basis.

· Another key area of focus is the Pacific Rim, specifically in Japan and Australia. They’ve acquired the Japanese distributor, and will be working closer with the Australian licensee.

You can listen to Webcasts of the presentations HERE.