DECKERS IS DOING WELL OVERALL
Deckers Outdoor’s net income rose by 20 percent to $11,294,000 during its first quarter ended March 31, while total sales rose by 34 percent to $97,535,000. Sales of UGG continue to drive the company; confirming the company’s belief that the brand is beginning to establish itself as a year-round brand. UGG’s top-line forecast for the full year of 2008 is expected to climb by 37 percent to around $475 million.
However, sales of Teva dipped by 3 percent to $37.7 million while sales of Simple increased by 25 percent to $5.1 million, 40 percent of which came from Simple’s Eco-Sneaks. Online sales rose by 75 percent to $15.6 million; domestic sales climbed by 41 percent to $78.7 million; and international sales were up by 11 percent at $18.8 million.
Deckers has raised its guidance for the full year to 31 percent growth, and a rise in earnings per share of 27 percent, up from the earlier guidance of 20 percent. UGG’s sales are expected to increase by 37 percent during the full year, Teva’s by 8 percent and Simple’s by 35 percent.
The company is hoping that international sales will reach 30 percent of revenues. Teva’s product range is also expanding, with apparel and closed-toe footwear being launched later this year. While UGG, and to a lesser extent Teva, are performing well internationally, Simple has yet to develop strongly internationally even though it is improving in the USA (more in Shoe Intelligence).
