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UGG brand perks up globally
24 Apr '09
5 min read
Deckers Outdoor Corporation announced financial results for the first quarter ended March 31, 2009.
First Quarter Highlights:
• Net sales increased 37.6% to $134.2 million versus $97.5 million last year.
• Diluted EPS increased 8.1% to $0.93 compared to $0.86 a year ago.
• Domestic sales increased 29.6% to $102.0 million versus $78.7 million last year.
• International sales increased 71.0% to $32.2 million compared $18.8 million a year ago.
• UGG brand sales increased 66.9% to $91.4 million versus $54.8 million last year.
Angel Martinez, President, Chief Executive Officer and Chairman of the Board of Directors, stated: “We are pleased by our recent performance and proud of our ability to deliver excellent operating results in this challenging economic environment. Our first quarter sales and earnings exceeded plan, driven by higher than expected domestic and international demand for UGG products as the brand's spring collection of boots, sandals, and casual footwear sold through very well at retail.
Sales of Teva products experienced a slight shortfall versus a year ago as a result of the general retail environment combined with the bankruptcy of some accounts. Importantly, we effectively controlled our inventories and expenses and we continue to monitor the financial health of our customers. We believe that the Teva brand is well positioned as we head into the summer selling season. Similarly, a higher level of cancellations and lower reorders during the first quarter negatively impacted our Simple brand's business.”
“Again, we are pleased with our start to 2009,” continued Mr. Martinez. “Our UGG brand's momentum continues to grow and we are now more optimistic about the brand's prospects evidenced by our improved outlook for the full year. Furthermore, our entire organization has done an excellent job managing the business during these difficult recessionary conditions, which allowed us to grow inventories to meet our sales while improving our cash, cash equivalents and short-term investments position by nearly $47 million to $230 million compared to a year ago.”
Division Summary
UGG
UGG brand net sales for the first quarter increased 66.9% to $91.4 million compared to $54.8 million for the same period last year. The significant sales increase was attributable to strong domestic demand for the expanded spring line coupled with increased shipments of spring product to international distributors.
Teva
Teva brand net sales decreased 5.7% to $35.6 million for the first quarter compared to $37.7 million for the same period last year. The decline in sales was the result of lower pre-booked orders scheduled for delivery in the first quarter compared with the year ago period and to a lesser extent the bankruptcies of three wholesale accounts.
Simple
Simple brand net sales for the first quarter decreased 13.0% to $4.4 million compared to $5.1 million for the same period last year. Simple sales were negatively impacted by a higher than normal rate of order cancellations due to the general retail environment combined with lower reorders and the loss of international sales, partly as a result of the termination of the brand's distributor in Japan.
First Quarter Highlights:
• Net sales increased 37.6% to $134.2 million versus $97.5 million last year.
• Diluted EPS increased 8.1% to $0.93 compared to $0.86 a year ago.
• Domestic sales increased 29.6% to $102.0 million versus $78.7 million last year.
• International sales increased 71.0% to $32.2 million compared $18.8 million a year ago.
• UGG brand sales increased 66.9% to $91.4 million versus $54.8 million last year.
Angel Martinez, President, Chief Executive Officer and Chairman of the Board of Directors, stated: “We are pleased by our recent performance and proud of our ability to deliver excellent operating results in this challenging economic environment. Our first quarter sales and earnings exceeded plan, driven by higher than expected domestic and international demand for UGG products as the brand's spring collection of boots, sandals, and casual footwear sold through very well at retail.
Sales of Teva products experienced a slight shortfall versus a year ago as a result of the general retail environment combined with the bankruptcy of some accounts. Importantly, we effectively controlled our inventories and expenses and we continue to monitor the financial health of our customers. We believe that the Teva brand is well positioned as we head into the summer selling season. Similarly, a higher level of cancellations and lower reorders during the first quarter negatively impacted our Simple brand's business.”
“Again, we are pleased with our start to 2009,” continued Mr. Martinez. “Our UGG brand's momentum continues to grow and we are now more optimistic about the brand's prospects evidenced by our improved outlook for the full year. Furthermore, our entire organization has done an excellent job managing the business during these difficult recessionary conditions, which allowed us to grow inventories to meet our sales while improving our cash, cash equivalents and short-term investments position by nearly $47 million to $230 million compared to a year ago.”
Division Summary
UGG
UGG brand net sales for the first quarter increased 66.9% to $91.4 million compared to $54.8 million for the same period last year. The significant sales increase was attributable to strong domestic demand for the expanded spring line coupled with increased shipments of spring product to international distributors.
Teva
Teva brand net sales decreased 5.7% to $35.6 million for the first quarter compared to $37.7 million for the same period last year. The decline in sales was the result of lower pre-booked orders scheduled for delivery in the first quarter compared with the year ago period and to a lesser extent the bankruptcies of three wholesale accounts.
Simple
Simple brand net sales for the first quarter decreased 13.0% to $4.4 million compared to $5.1 million for the same period last year. Simple sales were negatively impacted by a higher than normal rate of order cancellations due to the general retail environment combined with lower reorders and the loss of international sales, partly as a result of the termination of the brand's distributor in Japan.
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