Volcom plans for spot in public fold

Andrew Edwards

Costa Mesa youth clothing maker Volcom Inc. has taken steps that

could make it possible for investors to buy a stake in teenage style.

Volcom filed papers with the Securities and Exchange Commission

last week to take the company public. The filing included a

prospectus stating the company’s intention to issue $86.25 million in

common stock.

A Volcom secretary said company co-founder and chief executive

Richard Woolcott and other Volcom executives could not comment on

their initial public offering.

Woolcott and Tucker Hall founded Volcom in 1991 to outfit surfers,

skaters and snowboarders, proclaiming “youth against establishment”

as the company’s credo. The pair funded their start with a $5,000

loan from Woolcott’s father, and in the early days, Volcom was

headquartered in Woolcott’s Newport Beach bedroom, according to

Volcom’s website.

Though Volcom clothing can be found at mainstream retailers, such

as Nordstrom and Pacific Sunwear, the company’s prospectus pointed

out to potential investors that Volcom sells through specialty

retailers, such as the Frog House in West Newport. Volcom promotes

its image by sponsoring professional surfers, skateboarders and

snowboarders and advertising in magazines targeted at board-sports

fans.

The company’s marketing strategy has succeeded in capturing

teenagers’ attention.

“You can’t go a day without seeing Volcom,” said Rob Enriquez of

Jack’s Surfboards on the Balboa Peninsula.

During Volcom’s first year in business, the company sold $2,600

worth of clothing. The company has since grown to include its own

music label and a division that produces surfing, skateboarding and

snowboarding films. In 2004, Volcom reported $24.6 million in net

income.

“I think [Volcom] has the potential to be the new deal,” said the

Closet owner Billy Stade, who sells the company’s gear at his stores

at Triangle Square, Fashion Island and Huntington Beach. “They’ve set

the tone for the surf industry for the last five years.”

* ANDREW EDWARDS covers business and the environment. He can be

reached at (714) 966-4624 or by e-mail at andrew.edwards

@latimes.com.