US: Ugg growth boosts Deckers Q2 earnings
Strong momentum from its Ugg brand helped Deckers Outdoor Corporation to post a 129% surge in second quarter earnings per share, after adjustments.
The US footwear company saw its net sales for the three months to 30 June increase 72.8% to US$91.1m. Diluted EPS reached $0.39, after adjustments.
However, Deckers recorded a loss per share of $0.29 including the non-cash writedown of its under-performing Teva trademarks.
Ugg sales were up 130.6% to $60.6m, with Teva edging up 4.8% to $25.2m. Deckers' Simple brand posted a 94% sales increase to $4.7m.
The company saw its e-commerce revenues lift 31.7% to $6.4m, while its retail stores recorded a 143.2% sales increase to $3.1m.
"The positive momentum that the Ugg brand experienced at the start of the year continued into the second quarter, which allowed us to once again exceed expectations," said Deckers president, CEO and chairman Angel Martinez.
"The very challenging retail environment for the Teva brand contributed to our inability to support a portion of the value of the Teva trademarks on our balance sheet for accounting purposes.
"However, given the circumstances and compared to our competition, we are still encouraged with the Teva brand's results, as sales rose modestly driven by increased shelf space at retail, and consumer demand for several new styles from our spring collection."
Deckers increased its guidance for the rest of the year, targeting a full-year revenue rise of 43%, up from 31% previously, and a full-year EPS hike of 34%, up from 27%.
The company expects third quarter revenue and diluted EPS to rise 34% and 12% respectively; and fourth quarter revenue and diluted EPS to go up 45% and 42% respectively.
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