World Footwear

Companies

Deckers results reveal widening first quarter losses

Jul 28, 2014 United States
Deckers results reveal widening first quarter losses
Despite two digits growth on net sales, the company reported a deterioration of its net income, which now stands at a loss of 37.1 million US dollars

"We are pleased with the start of our new fiscal year," commented Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors.  "Our strong top-line performance was fueled by consumer demand for our compelling spring collections from the UGG, Teva, Sanuk and HOKA brands combined with higher initial wholesale shipments of UGG brand fall styles.  Sales trends were once again strongest in our Direct-to-Consumer division and we believe that our Omni-Channel initiatives aimed at elevating the consumer experience, strengthening customer connections and improving service levels continue to yield positive results.  As we head towards our busiest selling season, we believe we are well positioned from a merchandise, marketing and inventory standpoint to capitalize on the opportunities we are creating throughout each of our distribution channels and geographic regions."

First quarter sales increased 24.3% over the same period a year ago to a record 211.5 million US dollars driven by double digit growth across the major brands.

Net sales for the main brand on the company’s portfolio, UGG, increased 22.8% to 123.3 million dollars compared to 100.4 million US dollars for the same period last year. According to the company’s press release, “the increase in sales was driven by sales gains across all primary channels, including higher global wholesale and international distributor sales, the sales contribution from new worldwide retail store openings and an increase in global eCommerce sales, partially offset by a decrease in same store sales.”

Teva and Sanuk net sales presented two digits growth rates, with increments of 25.7% and 19.6%, respectively, reaching now 39.3 million US dollars and 36.0 million. Combined net sales of the company's other brands were up by 54.5% to 12.9 million US dollars for the first quarter compared to 8.4 million US dollars for the same period last year.

Deckers expects second quarter revenues to increase approximately 18% over the three month period ended 30th September 2013, while forecasting to report a second quarter fiscal year diluted earnings per share of approximately 0.98 US dollars compared to a diluted earnings per share of 0.95 US dollars reported for the three month period ended 30th September 2013.

As previously announced, the company recently changed its fiscal year end to 31st March from 31st December; as such the financial results reported here refer to the company's first fiscal quarter (period ended 30th June).

Deckers Outdoor Corporation is a global leader in designing, marketing and distributing innovative footwear, apparel and accessories developed for both everyday casual lifestyle use and high performance activities.  The Company's portfolio of brands includes UGG, Teva, Sanuk, TSUBO, Ahnu, MOZO, and HOKA ONE ONE. Deckers Outdoor products are sold in more than 50 countries and territories through select department and specialty stores, 126 Company-owned and operated retail stores, and select online stores, including Company-owned websites.

For more information about Deckers please visit the company's website.

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