Volcom Announces Q4, Year-End Results; Cuts 28 Jobs

ADMIN

• February 19 2009
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Volcom announced it’s fourth quarter and end of year 2008 results today, and reported that it has cut 28 positions (or 8%) from its in-house workforce and reduced salaries throughout the company as part of its cost reduction measures.

In a conference call immediately following the announcement, Volcom CEO Richard Woolcott and CFO Doug Collier both stated that although the cost cutting measures have been tough for the company, Volcom believes that such reductions in expenses will help maintain profitability within the company in the future. Collier and Woolcott also mentioned that Volcom would be prepared to make additional cuts in the future as neccessary, but that no additional cuts are planned right now.

“If we do make another round of cuts it will be determined on the read we get,” Woolcott said. “I’d say we’d have to get a better read before we make another move like that, and we should be getting that read in the next 2 to 3 months… Right now we are comfortable and are moving ahead with plans.”

Total consolidated revenues were up for Q4, totaling $69.6 million versus $69.1 million in 2007, according to the report. Year-end results show that total consolidated revenue for 2008 was up by 25% compared to 2007, increasing to $334.3 million from $268.6 million in 2007.

In a breakdown of the U.S. segment, Collier pointed out that total revenue for the fourth quarter was down, but Volcom’s boys and snow outerwear categories experienced an increase. Denim, boardshorts and outerwear also had strong sales increases in 2008, according to Woolcott.

A telephone playback of Volcom’s conference call also will be available through 11:59 p.m. ET, Thursday February 26. Listeners should call (800) 642-1687 (domestic) or (706) 645-9291 (international) and use reservation number 83908166.

The official press release can be read HERE.