Deckers Narrows Loss as Sales, Margins Improve

UGGGoleta, CA—Higher sales and improved margins helped Deckers Outdoor Corp. narrow its first quarter loss.

For the quarter ended March 31, the parent of UGG posted a net loss of $2.69 million, or 8 cents a share, compared with net income of $1.01 million, or 3 cents a share in the prior-year period. That was better than the 15 cents a share loss analysts had expected.

Net sales rose 12% to $294.72 million ahead of analysts’ consensus estimate of $281.77 million in sales.

Gross margin improved 210 basis points from the year-ago period to 48.9%. Selling, general and administrative expenses rose 20% from $144.67 million a year ago.

By brand, UGG reported a 16% increase to $197.6 million. Teva had a 9% sales decline, and Sanuk brand had a 0.8% decline to $30.7 million.

The company’s domestic sales rose 9% to $198.3 million, while international sales grew 19% to $96.4 million.

Looking ahead to the quarter ending June 30, Deckers Outdoor expects to report loss of about $1.33 a share, but projects revenues to increase about 12%.

Analysts expect the company to report loss of $1.05 a share on 9.5% growth in revenues. to $186.17 million.

For its full fiscal year Deckers Outdoor forecast earnings per share to increase about 13.5% and projects revenues to increase about 13%.

Analysts forecast the company to earn $4.02 a share for the year on revenues of $1.57 billion.

Deckers Outdoor said it has decided to transfer the listing of its common stock to the New York Stock Exchange from the NASDAQ.

 

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