Interviews
News Flash
UGG brand perks up globally
24 Apr '09
5 min read
Other Brands
Combined net sales of the Company's other brands, TSUBO and Ahnu, were $2.9 million for the first quarter of 2009. The Company acquired TSUBO in the second quarter of 2008 and Ahnu in the first quarter of 2009.
eCommerce
Sales for the eCommerce business, which are included in the brand sales numbers above, increased 3.5% to $16.2 million for the first quarter compared to $15.6 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 161.9% to $13.9 million for the first quarter compared to $5.3 million for the same period a year ago. For those stores that were open during the full three months ended March 31, 2008 and 2009, same store sales grew by 29.3%.
Gross Profit Margin
The Company's gross profit margin for the first quarter was 43.9% compared to 47.3% for the first quarter of last year. Gross profit margin decreased primarily due to the wholesale business growing at a higher rate than the eCommerce business for the first quarter of 2009 as well as higher levels of closeout sales than in the first quarter of 2008. First quarter 2008 margins were also positively impacted by a reduction in the estimate for sales returns.
Full-Year 2009 Outlook
• Based upon the UGG brand's better than expected first quarter results partially offset by lower projected sales forecasts for Teva, Simple, and TSUBO, the Company is adjusting its full year revenue outlook. The Company now expects its full year revenue to increase approximately 7% to 9% over 2008, compared to previous guidance of approximately 6% to 9%.
• The Company now expects its full year diluted earnings per share to be flat to up slightly over the $7.27 non-GAAP diluted EPS in 2008, which excluded pre-tax impairment charges of $35.8 million as discussed in our related earnings release, compared to previous guidance of flat to down slightly. This guidance assumes a gross profit margin of approximately 45% and SG&A as a percentage of sales of approximately 25%.
Second Quarter Outlook
• The Company currently expects second quarter 2009 revenue to increase approximately 10% over 2008 levels.
• The Company currently expects to report a diluted loss per share of approximately ($0.15) to ($0.10) for the second quarter 2009. This guidance assumes a gross profit margin of approximately 39% and SG&A as a percentage of sales of approximately 43% due to the shift of approximately $2 million in expenses, consisting primarily of marketing costs, into the second quarter from the first quarter. A significant amount of the Company's operating expenses are fixed and spread evenly on an absolute dollar basis throughout each quarter, resulting in the greatest impact on earnings in the lowest volume sales quarter, which has historically been the second quarter.
Combined net sales of the Company's other brands, TSUBO and Ahnu, were $2.9 million for the first quarter of 2009. The Company acquired TSUBO in the second quarter of 2008 and Ahnu in the first quarter of 2009.
eCommerce
Sales for the eCommerce business, which are included in the brand sales numbers above, increased 3.5% to $16.2 million for the first quarter compared to $15.6 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 161.9% to $13.9 million for the first quarter compared to $5.3 million for the same period a year ago. For those stores that were open during the full three months ended March 31, 2008 and 2009, same store sales grew by 29.3%.
Gross Profit Margin
The Company's gross profit margin for the first quarter was 43.9% compared to 47.3% for the first quarter of last year. Gross profit margin decreased primarily due to the wholesale business growing at a higher rate than the eCommerce business for the first quarter of 2009 as well as higher levels of closeout sales than in the first quarter of 2008. First quarter 2008 margins were also positively impacted by a reduction in the estimate for sales returns.
Full-Year 2009 Outlook
• Based upon the UGG brand's better than expected first quarter results partially offset by lower projected sales forecasts for Teva, Simple, and TSUBO, the Company is adjusting its full year revenue outlook. The Company now expects its full year revenue to increase approximately 7% to 9% over 2008, compared to previous guidance of approximately 6% to 9%.
• The Company now expects its full year diluted earnings per share to be flat to up slightly over the $7.27 non-GAAP diluted EPS in 2008, which excluded pre-tax impairment charges of $35.8 million as discussed in our related earnings release, compared to previous guidance of flat to down slightly. This guidance assumes a gross profit margin of approximately 45% and SG&A as a percentage of sales of approximately 25%.
Second Quarter Outlook
• The Company currently expects second quarter 2009 revenue to increase approximately 10% over 2008 levels.
• The Company currently expects to report a diluted loss per share of approximately ($0.15) to ($0.10) for the second quarter 2009. This guidance assumes a gross profit margin of approximately 39% and SG&A as a percentage of sales of approximately 43% due to the shift of approximately $2 million in expenses, consisting primarily of marketing costs, into the second quarter from the first quarter. A significant amount of the Company's operating expenses are fixed and spread evenly on an absolute dollar basis throughout each quarter, resulting in the greatest impact on earnings in the lowest volume sales quarter, which has historically been the second quarter.
Deckers Outdoor Corporation
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