US: Deckers Outdoor moves to Q1 loss
Deckers Outdoor Corporation has moved to a loss in its first-quarter but reported sales that beat its estimates.
In the three months to the end of March, the company recorded a net loss of US$2.1m on the back of increased expenses. This compared to earnings of $1.9m a year earlier.
Gross margin, however, improved 210 basis points to 48.9% compared to 46.8% for the same period last year.
Net sales were also up, increasing 11.7% to $294.7m compared to $263.8m in the prior year period. The company beat its own guidance of 6% revenue growth.
Two of its brands, however, saw declines. Tevaâ brand sales decreased 9.2% to $46.8m, while Sanukâ brand sales were down 0.8% to $30.7m.
Nonetheless, CEO Angel Martinez was optimistic: "The strength of our business early in the new calendar year underscores the power of our brand portfolio and the successful execution of our consumer centric growth strategy. We believe that our diversified spring product offerings from the UGG, Teva, Sanuk and HOKA brands are resonating with a broader global audience.
"We are confident we are making the right investments in our brands and operating platform to drive sustainable sales and earnings growth over the long-term."
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