MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
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Deckers Outdoor Corporation Reports Record First Quarter 2011 Financial Results
Company Reports First Quarter Sales Increased 31.4% to a Record $204.9 Million
First Quarter Diluted EPS Increased 6.5% to a Record $0.49 on a Post-Split Basis, Compared to $0.46 a Year Ago on a Post-Split Basis
Company Raises 2011 Sales and Earnings Outlook
GOLETA, Calif.--(BUSINESS WIRE)-- Deckers Outdoor Corporation (NASDAQGS:DECK - News) today announced financial results for the first quarter ended March 31, 2011.
Net sales increased 31.4% to $204.9 million compared to $155.9 million last year.
Diluted EPS increased 6.5% to $0.49 compared to $0.46 last year. The Company completed a three-for-one stock split, in the form of a stock dividend paid on July 2, 2010. All share and per share data in this release and accompanying tables have been adjusted to reflect the impact of such split for all periods presented.
UGG® brand sales increased 42.2% to $148.4 million compared to $104.4 million last year.
Teva® brand sales increased 16.8% to $50.4 million from $43.2 million last year.
Domestic sales increased 26.6% to $148.1 million from $117.0 million last year.
International sales increased 45.8% to $56.7 million compared to $38.9 million last year.
Retail sales increased 52.8% to $35.4 million compared to $23.1 million last year.
eCommerce sales increased 27.3% to $23.5 million compared to $18.4 million last year.
“We delivered a good start to the year,” said Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors. “We believe that our strategies to diversify our merchandise assortments and extend the global reach of our brands are being executed successfully. The favorable response to the UGG brand’s spring line of fashion sandals, sneakers, slippers and boots drove gains in our domestic wholesale, consumer direct, and international distribution channels. We achieved solid results with the Teva brand as well, with our new collection of closed toe footwear and expanded sandal offerings resonating with consumers. The first quarter was also highlighted by the commencement of our conversion to wholesale operations in our largest international market, the United Kingdom, and expansion of our existing business in our second largest market, Benelux. For the most part, these transitions have gone smoothly, and in addition to the immediate financial benefits, we are optimistic about the long-term growth opportunities these conversions will create for our Company. Furthermore, we are also optimistic that the brand investments we are currently making will also fuel domestic and international market share gains in the years ahead.”
UGG brand net sales for the first quarter increased 42.2% to $148.4 million compared to $104.4 million for the same period last year. The sales increase was primarily attributable to the conversion to a wholesale business model in the United Kingdom, Benelux and France, strong sales of the spring line at company-owned retail stores, and increased shipments of spring product to domestic wholesale accounts.
Teva brand net sales for the first quarter increased 16.8% to $50.4 million compared to $43.2 million for the same period last year. The sales growth was primarily the result of increased domestic demand for the expanded spring line of open and closed toe footwear, as well as from the conversion to a wholesale business model in the United Kingdom.
Combined net sales of the Company’s other brands decreased 28.3% to $6.0 million for the first quarter compared to $8.4 million for the same period last year. The decline in sales was primarily the result of lower sell-in of the Simple® and Ahnu® brands during the first quarter compared with the same period last year.
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