Operating income for the third quarter of 2007 was $23.0 million, compared with $15.6 million for the third quarter of 2006, a 48% increase. Operating margin was 25.3% for the third quarter of 2007, compared with 25.5% in the third quarter of 2006.
2007 Fourth Quarter and Full Year Outlook: For the 2007 fourth quarter, the company currently expects revenues to be approximately $70 million to $73 million and fully diluted earnings per share to be $0.30 to $0.32.
This outlook reflects the company's current visibility into its business with its largest customer, general caution by retailers due to the overall economic environment, slower than projected sales of outerwear as a result of a challenging 2006 snow season, and the slowing of the overall vulcanized slip-on category, which impacted sales of this portion of the company's new footwear business.
Given the company's outlook for the 2007 fourth quarter, Volcom is changing its 2007 revenue guidance to $270 to $273 million, an increase of 31% to 33% compared with 2006, from its original guidance of 34% to 36% growth. This translates to diluted earnings per share guidance for 2007 to a range of $1.37 to $1.39, reflecting growth of 16% to 18%, from $1.47 to $1.50.
marketing@alchempro.com
