Other Brands
Combined net sales of the Company's other brands were $5.6 million for both the second quarter of 2010 and 2009.
eCommerce
Sales for the eCommerce business, which are included in the brand sales numbers above, were $5.2 million for the second quarter of 2010 compared to $5.3 million for the same period last year.
Retail Stores
Sales for the retail store business, which are included in the brand sales numbers above, increased 63.1% to $10.0 million for the second quarter compared to $6.1 million for the same period last year, driven by five new stores and a same store sales increase of 19.2% for those stores that were open for the full three month periods ended June 30, 2009 and 2010.
Full-Year 2010 Outlook
• Based on better than expected second quarter results combined with higher projected sales for the UGG and Teva brands, the Company is raising its full-year outlook.
• The Company now expects its full-year revenue to increase approximately 14% over 2009 levels, compared to previous guidance of approximately 13%.
• The Company now expects its full-year diluted earnings per share to increase approximately 16% over the non-GAAP diluted EPS of $2.98 in 2009, compared to previous guidance of approximately 11%. This guidance assumes a gross profit margin of approximately 49% and SG&A as a percentage of sales of approximately 26%. The non-GAAP diluted EPS of $2.98 in 2009 has been adjusted to reflect the three-for-one stock split, in the form of a stock dividend, that took effect in July 2010, and excluded pre-tax non-cash impairment charges of $1.0 million, or $0.02 per diluted share, as discussed in the related earnings release.
• Fiscal 2010 guidance includes estimates of incremental expenses and a shift in sales of approximately $8.0 million, or approximately $0.13 per diluted share, associated with the transition to wholesale sales for the Teva brand in the Benelux region and France, and incremental expenses and a shift in sales from 2010 to 2011 associated with the upcoming transitions for the UGG and Simple brands in January 2011 to wholesale sales in the United Kingdom, the Benelux region and France. Fiscal 2010 guidance also assumes an effective tax rate of 36.5% compared to 36.2% in 2009 due to the impact on international income from the aforementioned incremental expenses and shift in profit.
Third and Fourth Quarter Outlook
• The Company currently expects third quarter 2010 revenue and diluted EPS to increase approximately 15% and 4%, respectively, over 2009 levels. This guidance assumes a gross profit margin of approximately 46% and SG&A as a percentage of sales of approximately 25%.
• The Company currently expects fourth quarter 2010 revenue and diluted EPS to increase approximately 8% and 8%, respectively, over 2009 levels. This guidance assumes a gross profit margin of approximately 52% and SG&A as a percentage of sales of approximately 21%.
Deckers Outdoor Corporation strives to be a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. Teva, Simple Shoes, UGG Australia, TSUBO, and Ahnu are registered trademarks of Deckers Outdoor Corporation.
Deckers Outdoor Corporation
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