Deckers Narrows Loss as Sales, Margins Improve

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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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