Volcom, Inc. fist quarter revenues were $68.3 million, a 15.3% decline from $80.6 million in the first quarter of 2008. Total revenues in the company’s U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the company’s branded retail stores, were $42.4 million, a 13.8% decrease from $49.2 million in the prior year period.

Management said that Volcom’s specialty and department store partners are being “squeezed by the economy,”  but they are helping retailers by selectively extending terms and working to better merchandise products.

Total revenues in the company’s Europe segment were down 13.9% $21.7 million. Total revenues in the Electric segment were down 32.3% to $4.2 million.

Gross margins fell 210 basis points to 50.3% of total revenues. Consolidated net income for Q1 was $4.2 million, or 17 cents per diluted share.

Management said that they are viewing the second quarter ahead as a “transition quarter” because many retailers were basically at a standstill when summer orders were being pre-booked in the October/November 2008 timeframe and decided to pass on booking summer altogether. Additionally, Volcom management noticed more orders being booked later in the season when compared to past years. These factors combine to create a revenue void in Q2. However, management believes Q2 marks the company’s low point for the year. 

Volcom currently expects total consolidated revenues for the second quarter of approximately $47 million to $50 million, and earnings are expected in the range of break even to a loss of approximately 3 cents per share.