Deckers Outdoor Corp posts record results in Q2
Deckers Outdoor Corporation announced financial results for the second quarter ended June 30, 2010.
Second Quarter Highlights
• Net sales increased 33.7% to $137.1 million versus $102.5 million last year.
• Gross margin improved 450 basis points to 44.3% versus 39.8% a year ago.
• Diluted EPS increased 155.6% to $0.23 compared to non-GAAP diluted EPS of $0.09 a year ago, which excluded a pre-tax non-cash impairment of $1.0 million on intangible assets, or $0.02 per diluted share. The Company completed a three-for-one stock split, in the form of a stock dividend paid on July 2, 2010. All share and per share data in this release and accompanying tables have been adjusted to reflect the impact of such split for all periods presented.
• UGG brand sales increased 34.6% to $100.2 million versus $74.4 million last year.
• Teva brand sales increased 38.4% to $31.2 million compared to $22.6 million last year.
• International sales increased 54.8% to $71.8 million versus $46.4 million a year ago.
• Retail sales increased 63.1% to $10.0 million compared to $6.1 million last year; same store sales rose 19.2%.
Angel Martinez, President, Chief Executive Officer and Chairman of the Board of Directors, stated: "Our business continued to perform very well during the second quarter with sales, margins and earnings all coming in above plan. We were particularly pleased with the pace of sales for the UGG brand overseas.
“After a solid spring season, we began shipping the fall line to distributors and we are confident that our diversified product offering is gaining important traction in international markets. At the same time, the strong momentum Teva experienced to start the year carried forward into the second quarter, especially in our domestic wholesale channel as the brand continues to benefit from a more complete collection of open and closed toe footwear and improved shelf space.
“The performance of our retail stores was also very encouraging with the growing year round demand for the UGG brand driving higher sell-through rates. We are excited with exceeding our financial objectives for the first six months of the year, and as we pass the half-way mark of 2010, we are confident we can continue to drive earnings growth as our sales base increases."
UGG brand net sales for the second quarter increased 34.6% to $100.2 million compared to $74.4 million for the same period last year. The sales gain was primarily attributable to an increase in global shipments of fall product versus the same period a year ago, combined with solid sales of the spring line at company owned retail stores.
Teva brand net sales increased 38.4% to $31.2 million for the second quarter compared to $22.6 million for the same period last year. The increase in sales was driven by higher reorders of the expanded spring line of open and closed toe footwear in the second quarter compared with the year ago period, as well as from the Company assuming control of direct distribution in the Benelux region.