"The selling environment in most of Europe for footwear and apparel was similar to the U.S., with many retailers citing weak traffic and a lack of newness during the holiday season. Despite this environment, we consistently heard from key accounts that the UGG brand was one of the standout exceptions, and that the uniqueness of our products in the market was a differentiating factor."
"For fall '14, we have an expanded selection of new specialty Classics and casual boots at sharper price points. Retailer response to fall '14 has been positive and the prebook process is going well, driven by the strength of the product line and the accelerated sell-through of our customers' experience this past season."
"Looking at our E-Commerce channel, 2013 was a really strong year driven by a 30% worldwide E-Commerce sales gain and the launch of new country-specific sites, most notably in China. The emphasis on more effective marketing programs aimed at driving traffic has been very impactful, while the response to new products in our Omni-Channel initiatives have helped increase conversion rates. We see continued opportunities to expand our E-Commerce business by leveraging key technology partnerships, offering more E-Commerce-only styles, relaunching our UGG website and expanding UGG by You in the U.S. and Japan."
"All right. Thanks, Dave. I'll get right into it. For the fourth quarter, net sales increased 19.2% to $736 million compared with $617.3 million a year ago. This year's results include domestic sales of $510.7 million, an increase of 14.3% compared with last year, and international sales of $225.3 million, an increase of 32.1% over last year."
Looking at the full year on a constant currency basis, total net sales increased 11.1% versus 10.1%, as reported, and international sales increased 20% versus 16.5% as reported. Looking at sales by brand: UGG brand sales increased 18.1% to $690.9 million."
Fourth quarter diluted earnings per share increased 45.8% to $4.04 compared to $2.77 a year ago. This was ahead of our guidance for earnings per share, which was approximately $3.66, with the upside driven primarily by stronger-than-expected sales.
At December 31, 2013, inventory decreased 13.1% to $260.8 million from $300.2 million at December 31, 2012. The decrease is mainly due to an 18% decrease in UGG brand inventory. And at December 31, 2013, our cash and cash equivalents increased $126.9 million, or 115%, to $237.1 million compared to $110.2 million at December 31, 2012. At December 31, 2013, we had $9.7 million in outstanding borrowings under our credit facility compared to $33 million at December 31, 2012.
Backlog at December 31, 2013, was approximately $401 million compared to $323 million at December 31, 2012. This represent a 24% increase. The year-over-year improvement in the backlog was driven by the increase of fall bookings, which were up against an easier comparison due to a more challenging fourth quarter a year ago. In addition, we estimate some followers came in earlier versus last year as a result of strong sell-through in the fourth quarter of 2013. While all orders backlogs are subject to cancellation by customers, we expect the majority of such orders will be filled in 2014.