Deckers Outdoor Corporation (NASDAQ: DECK) today announced financial results for the second quarter and six months ended June 30, 2000.

For the second quarter, net sales were $28.4m versus $31.4m in the same period last year. Net earnings for the quarter rose 33.8 per cent to $2.2m, compared to net earnings of $1.6m last year, and fully-diluted earnings per share increased 26.3 per cent to $0.24 versus fully-diluted earnings per share of $0.19 in the second quarter of 1999.

For the six months ended June 30, 2000, net sales increased to $69.9m versus $69.4m in the same period last year. Net earnings for the first half of fiscal 2000 rose 69.1 per cent to $6.6m, compared to net earnings of $3.9m last year, and fully-diluted earnings per share increased 61.4 per cent to $0.71 versus fully-diluted earnings per share of $0.44 in the first half of fiscal 1999.

Douglas Otto, chairman & CEO stated, "We were very pleased with our strong earnings performance during the quarter which exceeded analysts' expectations. These results represent our sixth consecutive quarter of year-over-year earnings improvement.

"As expected, our second quarter sales were slightly lower than the corresponding period a year ago due to our implementation of a new distribution strategy whereby we now sell product entirely through distributors in Europe, versus a combination of distributors and retailers last year," Mr. Otto continued.

For the quarter, the company's domestic sales, which historically represent the substantial majority of the company's business, increased 7.5 per cent to $25.1m and increased for all three of the Company's core brands; Teva, Simple and Ugg. However, due to the one-time shift in the European markets, the company's worldwide second quarter sales for Teva were $24.1m versus $26.8m in 1999, for Simple were $3.5m versus $3.6m in 1999, and for Ugg were $0.3m versus $0.1m in 1999.

"We are encouraged by the fact that all three brands posted gains domestically during the quarter," Mr. Otto continued. "For the first time in years, we feel that all three brands are hitting their stride.

"The second half of fiscal 2000 looks very promising, as we transition into back-to-school with new products and accelerating momentum. We have just begun shipping our new fall Teva line which includes hikers and other styles of closed footwear, and the initial response has been strong."

Mr. Otto concluded, "Our business is focused, our brands are strong, and we now have the right infrastructure to effectively capitalize on the opportunities that lie ahead. With good visibility in front of us, we are optimistic about the remainder of fiscal 2000 and fiscal 2001."

Deckers Outdoor Corporation builds niche products into global lifestyle brands by designing and marketing innovative, functional and fashion-oriented footwear, developed for both high performance outdoor activities and everyday casual lifestyle use. The Company's products are offered under the Teva, Simple and Ugg brand names.