Deckers Outdoor Q1 sales surge 24.3 percent

REPORT_ Deckers Outdoor Corporation, reporting its financial results for the first quarter ended June 30, 2014 said that company’s net

sales increased 24.3 percent to 211.5 million dollars compared to 170.1 million dollars for the same period last year. Gross margin was 41 percent compared to 41.1 percent for the same period last year. Diluted loss per share was 1.07 dollars compared to 0.85 dollars for the same period last year.

“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, adding, “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.”

Ugg brand net sales for the first quarter increased 22.8 percent. Teva brand net sales for the first quarter increased 25.7 percent, whereas Sanuk brand reported 19.6 percent rise. Combined net sales of the company's other brands increased 54.5 percent. The increase was primarily attributable to a 4.5 million dollars increase in sales for the Hoka One One brand compared to the same period last year.

Sales for the global retail store business, which are included in the brand sales numbers, increased 29.4 percent driven by 37 new stores opened after June 30, 2013, partially offset by a same store sales decrease of 2.8 percent for the thirteen weeks ended June 29, 2014 compared to the thirteen weeks ended June 30, 2013. Sales for the global E-Commerce business increased 43.7 percent driven by domestic and international sales for the Ugg, Teva and Sanuk brands, plus the domestic launch of the Hoka One One brand website and the addition of new international E-Commerce websites.

The company now expects fiscal year 2015 revenues to increase approximately 14 percent over the twelve month period ended March 31, 2014, from the previous guidance of 13 percent. The company expects fiscal year 2015 diluted earnings per shares to increase approximately 14.5 percent from the previous guidance of 13.5 percent. This guidance assumes a gross profit margin of approximately 49 percent and an operating margin of approximately 13 percent. The company now expects fiscal year 2015 Ugg brand revenues to increase approximately 12 percent compared the previous guidance of 11 percent. Teva brand revenues are expected to increase approximately 11 percentand Sanuk brand revenues, about 15 percent.

The company expects second quarter 2015 revenues to increase approximately 18 percent over the three month period ended September 30, 2013, and expects to report a second quarter fiscal year 2015 diluted earnings per share of approximately 0.98 dollars compared to a diluted earnings per share of 0.95 dollars reported for the three month period ended September 30, 2013.