Deckers Beats, Warns of High Cost
21.05.12
Deckers Outdoor Corporation ( DECK ) recently delivered a record fourth-quarter 2011 results on the back of strong demand for the product lines under the UGG brand during holiday season. The Teva brand and the recent acquisition of the Sanuk also were significant contributors. However, Deckers’ warned that rise in sheepskin prices and other costs would hurt the bottom lines of the first quarter and full year 2012.
The fourth quarter earnings of $3.18 per share beat the Zacks Consensus Estimate of $3.13, and surged 40.1% from $2.27 earned in the prior-year quarter.
Deckers said that total net sales jumped 40.4% to $603.9 million from the prior-year quarter, and came ahead of the Zacks Consensus Estimate of $563 million, reflecting sustained focus on new product introductions, store augmentation, along with geographic expansion.
Deckers witnessed increased demand for the UGG brand principally in the domestic wholesale market buoyed by new assortments and styles as well large collections of men’s and women’s products. The company also has a presence in Asia, with Japan and China leading the way and providing avenues for UGG brand.
Source: Zacks.com