Volcom at Good Entry Point

Headquartered in Costa Mesa, California, Volcom Inc. (VLCM) is an apparel company focused on designing, marketing and the distribution of premium quality clothing, accessories and related products for youth.

Volcom has an impressive sales growth record. Continued distribution channel expansion, both domestically and internationally, along with a strong new product effort should support Volcom’s sales growth rate after the current economic weakness abates.

After successfully bringing the European franchise in-house, management is similarly taking control of its distribution in Japan. Also, the company is diversifying the sales-base to include more retailers. Despite overall softness in the retail environment impacting Volcom’s sales, the Buy rating is maintained due to stock’s low and attractive valuation.

Read the full analyst report on VLCM