Deckers Outdoor Corporation, maker of the Teva, Simple and Ugg footwear brands, said on Thursday its second quarter net income slipped to $642,000 from $731,000 in the year-ago period with sales up four per cent to $22.4 million.

The California-based company added that for the six months ended June 30, net sales were flat at $55.6m and net income before an accounting change for goodwill impairment was $2.8m, verus $3.2m in 2001.

Second quarter Teva sales climbed to $19.5m from $19.2m, while Simple sales rose to $2.6m from $2.2m and Ugg sales increased to $0.3m from $0.2m.

Chairman and CEO, Douglas Otto, commented: "We are very pleased with our second quarter performance which significantly exceeded our internal expectations and guidance, both from a sales and earnings perspective.

"The strong results were driven primarily by robust sales of Teva sandals coupled with solid gains at Simple and Ugg. The positive momentum we have experienced in the first half of the year appears to be continuing in July and based on early feedback from retailers, we are very encouraged about our prospects for the remainder of fiscal 2002."