• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Deckers Outdoor trounces recession to deliver dazzling growth

27 Feb '09
7 min read

Division Summary:

UGG
UGG brand net sales for the fourth quarter increased 62.0% to $288.0 million compared to $177.7 million for the same period last year. The significant sales gain was driven by increased orders for fall and holiday product from domestic retailers, international distributors, and higher sell-through rates at company-owned retail locations and on its eCommerce website versus a year ago. For the full year, UGG brand sales increased 67.5% to a record $582.0 million versus $347.6 million in 2007.

Teva
Teva brand net sales were $12.4 million for the fourth quarter compared to $13.9 million for the same period last year, a decrease of 11.1%. The sales decline was primarily attributable to a lower level of pull-forwards on spring product compared with last year, partially offset by demand for new fall closed-toe product. For the full year, Teva brand sales decreased 1.6% to $86.5 million compared to $87.9 million in 2007.

Simple
Simple brand net sales for the fourth quarter were $2.3 million compared to $2.6 million for the same period last year, a decrease of 12.3%, primarily due to lower reorders from retailers. For the full year, Simple brand sales increased 27.4% to $17.2 million versus $13.5 million in the prior year.

TSUBO
TSUBO brand net sales were $0.9 million for the fourth quarter and $3.8 million for the full year. TSUBO was acquired by the Company in the second quarter of 2008.

eCommerce
Sales for the eCommerce business, which are included in the brand sales numbers above, increased 51.2% to $36.1 million for the fourth quarter compared to $23.9 million for the same period a year ago. For the full year, sales for the eCommerce business increased 51.2% to a record $68.8 million versus $45.5 million in 2007.

Retail Stores
Sales for the retail store business, which are included in the brand sales numbers above, increased 103.1% to $24.7 million for the fourth quarter compared to $12.1 million for the same period a year ago. For the full year, sales for the retail store business increased 109.2% to $38.5 million versus $18.4 million a year ago. For those stores that were open during the full year of 2007 and 2008, same store sales grew by 32.7%.

Full-Year 2009 Outlook:
• The Company introduced a full year revenue growth target of approximately 6% to 9% over 2008.
• The Company also introduced its full year diluted earnings per share target of approximately the same as to slightly down from the $7.27 non-GAAP diluted EPS in 2008, based on a gross margin being the same as to slightly up from 2008, SG&A expenses as a percentage of sales of approximately 25% to 26% and an effective tax rate of approximately 38%.
• Fiscal 2009 guidance includes additional marketing investments in the Simple and TSUBO divisions of approximately $10.0 million in an effort to increase consumer brand awareness and market share, and approximately $10.5 million of stock compensation expense.

First Quarter Outlook:
• The Company currently expects first quarter 2009 revenue to increase approximately 22% over 2008, and expects first quarter 2009 diluted earnings per share to be approximately 28% down from 2008.
• First quarter guidance includes additional marketing investments in the Simple and TSUBO divisions of $2 million, lower gross margins compared to 2008 due to higher levels of wholesale and international distributor sales as a percentage of total sales expected this year and higher levels of fixed overhead for new retail stores, warehouse operations, international infrastructure and general administrative costs.

Deckers Outdoor Corporation

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search