Apr 23, 2009
Deckers Outdoor sees Q2 loss, shares fall
Apr 23, 2009
April 23 (Reuters) - Shoe company Deckers Outdoor Corp (DECK.O) posted better-than-expected first-quarter results, helped by strength in its UGG brand, but it forecast a second-quarter loss, sending its shares down more than 7 percent. The company, which sells its products under UGG, Teva and Simple brands, said it expects to report a loss of 10 cents to 15 cents a share in the second quarter, as first-quarter marketing expenses move into the second quarter.
UGG publicity campaign (Photo: www.uggaustralia.com)
The company, however, raised its 2009 profit outlook based on UGG's first-quarter performance, and said it expects revenue to rise about 10 percent for the second quarter.
Analysts were expecting the company to earn 26 cents a share, before items, on revenue of $103.9 million for the second quarter, according to Reuters Estimate.
For the first quarter, Deckers earned $12.3 million, or 93 cents a share, compared with $11.3 million, or 86 cents a share, a year earlier. Net sales rose 37.6 percent to $134.2 million.
Sales of UGG, the company's sheepskin footwear brand, surged about 67 percent to $91.4 million. For 2009, Deckers expects earnings per share to remain flat to slightly up over 2008 adjusted earnings of $7.27, compared with its prior view of flat to down slightly.
It now expects revenue to rise about 7 percent to 9 percent for the year compared with its previous forecast of a 6 percent to 9 percent increase.
Analysts were looking for earnings of $7.09 a share on revenue of $748.1 million for the year.
Shares of the Goleta, California-based company were trading at $59.01 after the bell. They closed at $63.80 Thursday on Nasdaq.
(Reporting by Poojya Trivedi in Bangalore; Editing by Deepak Kannan)
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