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Deckers UGG brand sales up
08 Aug '08
5 min read
TSUBO:
The TSUBO brand was acquired in the second quarter and did not have a material amount of net sales for the quarter.
eCommerce:
Sales for the eCommerce business, which are included in the brand sales numbers above, increased 31.7% to $6.4 million for the second quarter compared to $4.9 million for the same period a year ago.
Retail Stores:
Sales for the retail store business, which are included in the brand sales numbers above, increased 143.2% to $3.1 million for the second quarter compared to $1.3 million for the same period a year ago.
Inventories:
At June 30, 2008, inventories increased to $112.8 million, versus $66.3 million a year ago. By brand, UGG increased $38.6 million to $90.6 million, Teva increased $2.9 million to $14.0 million and Simple increased $3.7 million to $6.9 million. The addition of the TSUBO brand in the second quarter added $1.1 million in inventory. It is also important to note that the majority of the UGG brand's business is pre-booked and the increase in UGG inventory is necessary to fulfill the volume of orders currently on the books.
Full-Year 2008 Outlook:
• Based upon the Company's second quarter results coupled with improved visibility into the second half of the year, the Company currently expects its full year revenue to increase approximately 43% over 2007, up from previous guidance of approximately 31%.
• The Company currently expects its full year diluted earnings per share, excluding the impact of the non-cash charge related to the write-down of the Teva trademarks discussed above, to increase approximately 34% over 2007, up from previous guidance of approximately 27%. This guidance assumes a gross profit margin of approximately 45% and SG&A as a percentage of sales of approximately 23%, both consistent with previous expectations.
• Fiscal 2008 guidance includes approximately $10.6 million of stock compensation expense.
Third and Fourth Quarter Outlook:
• The Company currently expects third quarter 2008 revenue and diluted earnings per share to increase approximately 34% and 12%, respectively, over 2007 levels. This guidance assumes a gross profit margin of approximately 44% and SG&A as a percentage of sales of approximately 23% due to additional distribution center costs, higher stock compensation, and costs for new retail stores that were not open in the third quarter of 2007.
• The Company currently expects fourth quarter 2008 revenue and diluted earnings per share to increase approximately 45% and 42%, respectively, over 2007 levels. This guidance assumes a gross profit margin of approximately 47% and SG&A as a percentage of sales of approximately 18%.
The TSUBO brand was acquired in the second quarter and did not have a material amount of net sales for the quarter.
eCommerce:
Sales for the eCommerce business, which are included in the brand sales numbers above, increased 31.7% to $6.4 million for the second quarter compared to $4.9 million for the same period a year ago.
Retail Stores:
Sales for the retail store business, which are included in the brand sales numbers above, increased 143.2% to $3.1 million for the second quarter compared to $1.3 million for the same period a year ago.
Inventories:
At June 30, 2008, inventories increased to $112.8 million, versus $66.3 million a year ago. By brand, UGG increased $38.6 million to $90.6 million, Teva increased $2.9 million to $14.0 million and Simple increased $3.7 million to $6.9 million. The addition of the TSUBO brand in the second quarter added $1.1 million in inventory. It is also important to note that the majority of the UGG brand's business is pre-booked and the increase in UGG inventory is necessary to fulfill the volume of orders currently on the books.
Full-Year 2008 Outlook:
• Based upon the Company's second quarter results coupled with improved visibility into the second half of the year, the Company currently expects its full year revenue to increase approximately 43% over 2007, up from previous guidance of approximately 31%.
• The Company currently expects its full year diluted earnings per share, excluding the impact of the non-cash charge related to the write-down of the Teva trademarks discussed above, to increase approximately 34% over 2007, up from previous guidance of approximately 27%. This guidance assumes a gross profit margin of approximately 45% and SG&A as a percentage of sales of approximately 23%, both consistent with previous expectations.
• Fiscal 2008 guidance includes approximately $10.6 million of stock compensation expense.
Third and Fourth Quarter Outlook:
• The Company currently expects third quarter 2008 revenue and diluted earnings per share to increase approximately 34% and 12%, respectively, over 2007 levels. This guidance assumes a gross profit margin of approximately 44% and SG&A as a percentage of sales of approximately 23% due to additional distribution center costs, higher stock compensation, and costs for new retail stores that were not open in the third quarter of 2007.
• The Company currently expects fourth quarter 2008 revenue and diluted earnings per share to increase approximately 45% and 42%, respectively, over 2007 levels. This guidance assumes a gross profit margin of approximately 47% and SG&A as a percentage of sales of approximately 18%.
Deckers Outdoor Corporation
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