Apparel firm Volcom’s stock plunges after profit warning

Volcom Inc. shares fell sharply in after-hours trading Monday after the company forecast that profit would be lower than expected in the fourth quarter and the year.

The Costa Mesa firm, which makes a popular line of surf and skate wear, said it was cautious about coming months because of the overall economic outlook, slower-than-projected sales of outerwear and slowing sales of slip-on footwear.

For the third quarter, however, Volcom posted strong results, helped by European sales.

Net income rose 43% to $14.5 million, or 59 cents a share, from $10.2 million, or 42 cents, a year earlier. Revenue was up 49% to $91 million.

Analysts had expected earnings of 56 cents on revenue of $90.9 million, according to Reuters Estimates.

The company said fourth-quarter earnings were expected to range from 30 cents to 32 cents on revenue of $70 million to $73 million.

Wall Street has expected fourth-quarter earnings of 47 cents a share.

Volcom noted that Pacific Sunwear of California Inc., its No. 1 customer, was cutting back on orders.

The company’s shares fell $9.01 to $32.82 in extended trading after closing up nearly 7% at $41.83 on Nasdaq.