Deckers Outdoor Tops Q4 Expectations

reported stronger-than-expected results for the fiscal fourth quarter on Thursday. The Goleta, California-based company posted quarterly net income of $1.4 million, or $0.04 per share, versus a year-ago loss of $0.08 per share. Its revenue climbed 15.6 percent year-over-year to $340.6 million from $294.7 million. However, analysts were expecting earnings of $0.00 per share on revenue of $321.24 million. The average estimate among 17 Estimize users was for earnings of $0.03 per share and revenue of $322.88 million. UGG® brand net sales for the quarter rose 9.7 percent year-over-year to $216.8 million, while Teva® brand net sales rose 13.4 percent to $53.1 million. Sanuk® brand net sales jumped 27.9 percent to $39.2 million. Wholesale and distributor sales for the fourth quarter climbed 16.6 percent to $205.1 million, versus $176.0 million in the year-ago quarter. Direct-to-Consumer sales gained 14.1 percent to $135.5 million from $118.7 million. Domestic sales for the fourth quarter jumped 9.8 percent to $217.7 million, while international sales climbed 27.5 percent to $122.9 million in the latest quarter. Gross margin for the latest quarter narrowed to 44.7 percent from 48.9 percent. During the fourth quarter, Deckers repurchased around 1.3 million shares of its common stock for a total of $93.9 million. At March 31, 2015, Deckers had $225.1 million in cash and cash equivalents, versus $245.0 million at March 31, 2014. At March 31, 2015, inventories climbed 12.9 percent to $238.9 million, compared to $211.5 million at March 31, 2014. "We ended fiscal 2015 with solid momentum highlighted by approximately 16% revenue growth in the fourth quarter despite unfavorable foreign exchange rate headwinds," commented Angel Martinez, Chief Executive Officer and Chair of the Board of Directors. "The work we've done to continue to excite our consumers with compelling new products and to continue to connect with them on a more frequent and personalized basis through our advanced Omni-Channel capabilities is fueling increased demand across our brand portfolio. These actions are helping us to further diversify our business and create new opportunities for growth" For the full fiscal 2016, Deckers projects earnings of $5.60 per share on a constant currency basis, and revenue of $2.01 billion. Deckers expects a Q1 loss of $1.52 per share, versus analysts' estimates for a loss of $1.17 per share. It projects constant currency revenue to rise slightly from the year-ago period. Deckers shares fell 2.39 percent to $69.50 in the after-hours trading session.