• Q3 earnings reach US$37.4m
  • Gross margin increases 340 bps
  • Sales grow 24.2%

Footwear specialist Deckers Outdoor has revealed second-quarter earnings and sales that beat analyst estimates.

Earnings reached US$37.4m, or $1.17 per share, in the three months to the end of September. This compared to earnings of $34.2m in the year ago period and beat RBC Capital markets analyst estimates of $1.02 per share.

Gross margin increased 340 basis points to 46.6%, while net sales grew 24.2% to a record $480.3m, beating estimates of an 18.9% increase.

Retail sales were up 20.1% to $63.2m, while e-commerce sales grew 45.1% to reach $21.6m. Domestic sales climbed 21.1% to $289.1m, and international sales were up 29.2% to $191.2m.

CEO Angel Martinez, said: "We plan to continue to focus on marketing programs and Omni-Channel initiatives to effectively communicate our product stories and drive increased conversions in our Direct-to-Consumer channel. We believe that we are well positioned for another successful holiday season, and more importantly, to drive growth for many years to come."

RBC Capital Markets analyst Howard Tubin believes there several opportunities exist to keep overall momentum in the business going through winter and into next year.

He pointed to strategies and plans in place, including newness in marketing via the first integrated brand campaign, improvements to the in-store shopping experience, the testing of pop-up shops, new DTC channel "Infinite UGG", and on the cost side, sheepskin negotiations for fall 2015.

He added: "We believe that Deckers is back on the trajectory for earnings growth and that the difficulties experienced over the last 1-2 years are now, for the most part, behind the company."