Deckers Boast 44% Increase in Q4 Profit

Denim at UGG

Denim at UGG

Goleta, CA—Deckers Outdoor Corp. boasted a 44% jump in its fourth quarter profit last week as sales rose and gross margin improved.

For the quarter ended Dec. 31, the parent to UGG, Teva and Sanuk etc. posted a profit of $140.9 million, or $4.04 a share, up from $98.1 million, or $2.77 a share, a year earlier. That was ahead of analysts’ average estimate for $3.80 a share.

Net sales rose 19% $736 million, as U.S. sales grew 14% and international sales jumped 32%.

UGG Sales Up 18%

By brand, UGG brand sales net sales increased 18.1% to $690.9 million. “The increase in sales was driven by sales gains across all primary channels, including the sales contribution from new retail store openings and an increase in same store sales, an increase in global e-commerce sales, and higher domestic and international wholesale sales.” For full year 2013, UGG net sales increased 9.7% to $1.299 billion.

Meanwhile, Teva reported a 13.6% increase to $15.5 million. Sanuk’s sales increased 45.2% to $22.2 million.

Gross margin widened to 51.1% from 46.3%.

Angel Martinez touted a strong final quarter of fiscal 2013, saying results were bolstered by sales of full-priced items throughout each of the company’s distribution channels and geographic regions.

“Our strong fourth quarter performance capped off a year of solid strategic progress,” said Angel Martinez, president/ceo. “We believe that the concerted investments we are making in our brands, distribution platforms and infrastructure are leading to improved financial and operating results as we expand our direct-to-consumer footprint and elevate our omni-channel resources. Our sales and earnings growth were driven by strong full price selling throughout each of our distribution channels and geographic regions. The power of the UGG brand was on full display during the recent holiday season as consumers responded very positively to our most complete product line ever.”

Sales for the global retail store business, which are included in the brand sales numbers above, increased 31.4% to $178.0 million, driven by 40 new stores and comp store sales increase of 6.1%.

Looking ahead, the company expects full year earnings to rise about 8% on about 10% sales growth. Analysts expect a 12% increase in earnings on an 8.7% top line growth.

For the first quarter, Deckers expects to post a loss of about 16 cents a share on a 6% increase in revenue. Analysts project a 9 cents a share profit on a 12% sales increase.

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com