Deckers Outdoor quarterly net sales rise 11.7 percent

REPORT_ Deckers Outdoor Corporation announced its financial results for

the three month transition period ended March 31, 2014. With net sales rise of 11.7 percent to 294.7 million dollars compared to 263.8 million dollars for the same period last year. Company recently changed its fiscal year from December 31 to March 31 and as a result, it has referred to the three month period ended March 31, 2014 as the transition period.

Gross margin for the period improved 210 basis points to 48.9 percent compared to 46.8 percent for the same period last year. Diluted loss per share was 0.08 dollars compared to earnings per share of 0.03 dollars for the same period last year. Ugg brand sales increased 15.8 percent, Teva brand sales decreased 9.2 percent, whereas Sanuk brand sales decreased 0.8 percent compared to the same period last year.

Retail sales increased 26.1 percent to 80.1 million dollars compared to 63.6 million dollars for the same period last year; same store sales increased 4 percent for the thirteen weeks ended March 30, 2014 compared to the thirteen weeks ended March 31, 2013. E-Commerce sales increased 45 percent and domestic sales increased 8.5 percent. International sales increased 18.9 percent.

“The strength of our business early in the new calendar year underscores the power of our brand portfolio and the successful execution of our consumer centric growth strategy,” commented Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors, adding, “We believe that our diversified spring product offerings from the Ugg, Teva, Sanuk and Hoka brands are resonating with a broader global audience. We are confident we are making the right investments in our brands and operating platform to drive sustainable sales and earnings growth over the long-term.”

The Goleta, California headquartered company also announced that Zohar Ziv will retire as Chief Operating Officer after over eight years with the company. In order to facilitate a smooth transition which is expected to be concluded by the end of the year, Ziv is expected to stay until his successor is named.

Based upon current visibility, the company expects fiscal year 2015 revenues to increase approximately 13 percent over the twelve month period ended March 31, 2014. The company expects fiscal year 2015 diluted earnings per share to increase approximately 13.5 percent over the twelve month period ended March 31, 2014. This guidance assumes a gross profit margin of approximately 49.4 percent and an operating margin of approximately 13 percent. The company expects fiscal year 2015 Ugg brand revenues to increase approximately 11 percent over the twelve month period ended March 31, 2014, Teva brand revenues to increase approximately 11 percent, and Sanuk brand revenues to increase approximately 15 percent over the twelve month period ended March 31, 2014. Combined fiscal year 2015 net sales of the company's other brands are expected to be approximately 82 million dollars compared to 48.6 million dollars for the twelve month period ended March 31, 2014.

The company currently expects first quarter 2015 revenues to increase approximately 12 percent over the three month period ended June 30, 2013 calendar year levels, and expects to report a first quarter fiscal year 2015 diluted loss per share of approximately 1.33 dollars compared to a diluted loss per share of 0.85 dollars reported for the three month period ended June 30, 2013.