Kering reports Volcom & Electric attributes decline to industry hardship
Surfersvillage Global Surf News, 27 February, 2014 - Volcom's Parent company announced solid operating and financial performances Kering, the parent company of Volcom and Electric announced Friday that both brands have shown strong financial performances in the second half of 2013.
Volcom and Electric are part of Paris-based Kering, which also owns Puma, Gucci, Bottega Veneta and Saint Laurent among other brands.
Volcom and Electric had combined revenue of $336.75 million, based on current exchange rates, down 2.3% in constant currency. Volcom sales make up the bulk of that total.
Kering attributed the decline to a tough operating environment for the action sports industry along with changes among the two companies’ retail network. Operating income for the two brands totaled $11.68 million, down by double digits.
Despite the overall decline for the year for Volcom and Electric, sales improved in the second half of last year to rise 1.5% in constant currency.
Kering doesn’t break out individual sales information for Volcom and Electric, but said Volcom sales were off 1.4% in constant currency for the year. Sales for the brand did begin to rise in the second half.
Volcom product categories outside its core apparel, such as its new footwear line and accessories, accounted for 17% of the company’s 2013 sales and showed steady growth. Volcom also has 47 company-owned stores.
Electric focused on trimming back its apparel offerings in favor of accessories such as watches, sunglasses and snow goggles. Accessories rose to 82.6% of its sales last year.