Deckers Posts Q3 Beat; Holiday Outlook Below Views

Deckers Outdoor Corp.

posted fiscal second-quarter results Thursday that beat analysts expectations with sales and earnings growth of more than 20 percent. But the company's holiday-quarter forecast failed to meet expectations and Deckers' lost more than 2 percent in after-hours trading recently, falling to $88.10 a share. Deckers, a Goleta, Calif-based footwear and apparel company whose brands include Ugg and Teva, said nonetheless that it's "well positioned for another successful holiday season." Deckers expects third-quarter earnings of $4.46 a share on revenue of $809 million, versus the Wall Street consensus of $4.75 a share, on revenue of $817.4 million. In the recent period, UGG brand net sales grew 23.8 percent to $417.1 million while Teva sales for the second quarter increased 14.9 percent to $20.7 million. Sanuk sales were up 3.2 percent to $19 million. Same-store sales declined 8.8 percent at the company's retail store business, although total store sales grew 20 percent to $63.2 million. E-commerce sales increased 45 percent to $21.6 million. The company posted net income of $40.7 million, or $1.17 a share, up from $34.2 million, or $0.95 cents a share a year earlier. Total sales rose to $480.3 million, from $386.7 million. Wall Street expected earnings of $1.03 a share, on sales of $457.8 million.