Deckers ' 1st-qtr profit falls short of forecasts
Deckers says warm weather held back 1Q Ugg boot sales, Teva sales fell; shares sink
GOLETA, Calif. (AP) -- Deckers Outdoor Corp. said Thursday that the unusually warm winter weather hurt demand for its Ugg boots, which helped send its first-quarter profit down 59 percent. The shoe maker also lowered its full-year guidance, and its shares plunged more than 15 percent after hours.
Deckers, which also makes Teva and Sanuk shoes, said it earned $7.9 million, or 20 cents per share, for the quarter that ended March 31. That's down from $16.9 million, or 49 cents per share, a year earlier. Its revenue rose 20 percent to $246.3 million.
Analysts polled by FactSet had anticipated Deckers would earn 25 cents per share on revenue of $245.3 million, according to FactSet.
The acquisition last July of the Sanuk brand helped boost revenue, as did higher demand for the spring line of Uggs. But the company suffered with weak demand for boots and a rise in closeout sales. Its online sales fell.
Deckers said its direct retail sales rose nearly 31 percent to $46.2 million, while its online sales fell nearly 8 percent to $21.7 million. Broken down by brand, Ugg sales rose 6.5 percent to $158.1 million, and Teva sales fell 1.1 percent to $49.8 million.
President and CEO Angel Martinez said the company believes it can navigate through coming economic and industry challenges.
Deckers did lower its full-year earnings guidance, citing rising costs for materials and the need to discount more inventory to clear it out, and it forecast weaker second-quarter performance than analysts were looking for.
For the year, the company now anticipates a drop in its earnings per share of 9 percent to 10 percent, but a rise of 14 percent in revenue. That implies earnings of $4.56 to $4.61 per share and revenue of $1.57 billion. Analysts are expecting earnings of $5.17 per share on revenue of $1.59 billion for the year, according to FactSet.
The company previously forecast flat earnings and a 15 percent revenue gain for 2012.
For the current quarter, the company expects a loss of 60 cents per share and an 8 percent increase in revenue, which implies $166.5 million in revenue. Analysts were expecting a loss of 39 cents per share and $184.9 million in revenue for the second quarter.
Shares of Deckers sank $10.47 to $58.99 after hours. They have fallen steadily since October, when it was trading at $117.66. They had ended regular trading up $1.85, or 2.7 percent, at $69.46.
