US: Deckers Outdoor lifts outlook despite Q2 loss
- Swings to Q2 net loss of $7.3m
- Net sales rose 12.5% to $154.2m from $137.1m
- Gross margin fell to 42.7% from 44.3%
Despite swinging to a loss in its second quarter, Deckers Outdoor Corporation has raised its full-year outlook on better than expected sales of its Ugg and Teva shoe brands and an improved outlook for the rest of the year.
The company swung to a second quarter loss of $7.3m or $0.19 per share, from a profit of $9.0m or $0.23 per share in the same period last year, but said the results still came in better than expected.
President and CEO Angel Martinez blamed the decline in the bottom line on “additional costs associated with the transition to wholesale operations in the UK and Benelux, eleven new retail stores, and other infrastructure investments.”
Highlights from the quarter saw Ugg sales rise 8% to $108.3m, Teva jumped 29.1% to $40.3m, domestic sales increased 26.9% to $82.8m, and retail sales doubled to $20.1m.
The company now expects its full-year revenue to be around 26% higher than in 2010 and sees earnings per share 17% ahead of last year, compared to earlier forecasts for a rise of 13%.
“As we start the second half of the year, we are excited about the pace of our business and future prospects,” Martinez added.
“We have taken important steps that we believe will broaden the company’s growth opportunities and expand our earnings potential, including diversifying our merchandise offering, reassuming distribution rights in key geographic regions, accelerating our retail store openings, and acquiring the authentic, innovative Sanuk brand.”
Action sports and outdoor industry expert Shaun Tomson is joining apparel consultancy firm Walter Wilhelm Associates LLC (WWA) as a senior associate....
TradeCard Inc, the supply chain collaboration platform used by retailers, brands and manufacturers, is expanding in Asia with the addition of former Kurt Salmon consultant Cliff Entrekin to its busine...
- Improved supplier capabilities benefit Next
- China and Vietnam lead US apparel imports in July
- Next H1: What the analysts say
- THE FLANARANT: Understand win-win or lose out
- Abercrombie & Fitch to lose logos in fashion focus
- Hanesbrands axes Costa Rican jobs in Vietnam move
- Brandix selects first "game-changing" innovations
- Apparel fuels global manufacturing downturn
- VF taps Nike exec to lead innovation centres
- Bagir to invest in Ethiopia as H1 loss deepens
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details