Deckers shares jump as firm raises full-year outlook on higher Q1 sales
Deckers’ Ugg store on Madison Avenue in New York. (courtesy photo)
Shares of Deckers Outdoor Corp. hopped 5.6 percent in after-hours trading on July 24 as the footwear firm reported better-than-expected sales and raised its outlook for the full year.
The firm’s loss widened to $37.1 million, or $1.07 per share, compared to a loss of $29.3 million in the same period a year earlier. Analysts had been expecting a loss of $1.28 per share, according to estimates compiled by Yahoo Finance.
Goleta-based Deckers’ first-quarter sales climbed 24.3 percent to $211.5 million. All of the company’s major brands, including Ugg, Teva, Hoka and Sanuk, posted revenue increases. The retail channel that saw the largest increase was e-commerce, with online revenue rising 43.7 percent to $15.4 million.
Analysts had been expecting total revenue of $192 million in the quarter.
Overall, Deckers’ direct-to-consumer sales increased 10 percent over a year earlier. The company has embarked on a worldwide push to build out its own branded stores so it can sell directly to customers. Sales from its company stores jumped 29.4 percent to $42 million, driven by 37 shop openings over the last year, Deckers said.
“We are pleased with the start of our new fiscal year,” Deckers CEO, Chairman and President Angel Martinez said in a statement. “Our strong top-line performance was fueled by consumer demand for our compelling spring collections from the Ugg, Teva, Sanuk and Hoka brands, combined with higher initial wholesale shipments of Ugg brand fall styles.”
Ugg remains by far Deckers’ largest revenue generator, with sales of the brand clocking in at $123.3 million in the quarter, up 22.8 percent compared to a year earlier.
The company’s international sales increased 32.1 percent to $79.2 million, versus $132.3 million in domestic sales, a 20.1 percent increase over a year earlier.
Deckers raised its guidance for the 2015 fiscal year and the second quarter. The firm said it now expects its 2015 revenue to be about 14 percent higher compared to the previous year, indicating sales of just under $2 billion. It had previously said it expects the year’s revenue to be 13 percent higher.
Deckers also said it expects its earnings per share to jump 14.5 percent compared to the previous year, indicating profits of about $4.79 per share. Previously, the firm had predicted a 13.5 percent earnings rise.
Revenue is expected to increase 12 percent at Ugg, 11 percent at Teva and 15 percent at Sanuk compared to last year.
Deckers said it expects second-quarter revenues to jump 18 percent as earnings per share increase to 98 cents, compared to 95 cents in the same period a year earlier.
Deckers shares traded up 5.6 percent to $90 in after-hours trading on July 24.
