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.”
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