Volcom Earnings: Current Liabilities are Dropping

Rising costs did not help Volcom, Inc. ( NASDAQ:VLCM ) in the first quarter as profit dropped from a year earlier. Volcom, Inc. is a designer, marketer and distributor of young men’s and young women’s clothing, footwear, accessories and related products under the Volcom brand name.

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Volcom Earnings Cheat Sheet for the First Quarter

Results: Net income for the footwear and apparel company fell to $4.6 million (19 cents/share) vs. $7.5 million (31 cents/share) a year earlier. A decline of 38.8% from the year earlier quarter.

Revenue: Rose 12.6% to $87.1 million YoY.

Actual vs. Wall St. Expectations: VLCM fell in line with the mean analyst estimate of 19 cents/share. Estimates ranged from 17 cents per share to 21 cents per share.

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 15%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 22.4% from the year earlier quarter.

From the fourth quarter of the last fiscal year, the company’s current liabilities fell to $28.8 million from $39.1 million.

Net income has dropped 21.2% year over year on average across the last five quarters. Performance was hurt by a 92.2% decline in the second quarter of the last fiscal year from the year earlier quarter.

Competitors to Watch: Quiksilver, Inc. ( NYSE:ZQK ), Perry Ellis Intl., Inc. ( NASDAQ:PERY ), NIKE, Inc. ( NYSE:NKE ), Liwe Espanola SA ( NASDAQ:LIWA ), Zumiez ( NASDAQ:ZUMZ ), and Guararapes Confeccoes SA (GUAR3)

Stock Performance: Shares of VLCM are up 0.08 percent to $24.40 in after hours trading.

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