Deckers Outdoor Corporation today announced financial results for the second quarter ended June 30, 2001.

For the second quarter, net sales were $21.6m versus $28.9m in the same period last year. Net earnings for the quarter were $731,000, compared to net earnings of $2.2m last year, and diluted earnings per share were $0.08 versus diluted earnings per share of $0.24 in the second quarter of 2000.

For the six months ended June 30, 2001, net sales were $56.5m versus $70.9m in the same period last year. Net earnings for the first half of fiscal 2001 were $3.2m, compared to net earnings of $6.6m last year, and fully-diluted earnings per share were $0.34 versus fully-diluted earnings per share of $0.71 in the first half of fiscal 2000.

Douglas Otto, chairman and CEO, said: "Our results for the quarter were in-line with the high end of our previously announced expectations and reflect our ongoing efforts to build a strong platform on which to grow into the future. We are encouraged by our current momentum, particularly given the challenging retail environment both domestically and for international sales."

Teva sales for the quarter were $19.2m compared to $24.5m in the same period a year ago, while Simple sales were $2.2m compared to $3.5m last year and Ugg sales were $0.2m compared to $0.3m. The decrease in sales is primarily attributed to the softening economy, the weakened retail environment and this season's colder weather.

Gross margin for the quarter was 44.5 per cent compared to 47.5 per cent in the second quarter of last year, primarily due to an increased impact of closeout sales during the quarter. Selling, general and administrative expenses decreased for the quarter compared to the year ago period by nearly $1.5m due to reduced commissions and royalties on the lower sales, as well as decreased bad debts, marketing and payroll costs.

As of June 30, 2001, the company had no bank debt and had $22m in cash compared to $9.9m in cash at June 30, 2000. As a result of this improved cash position, the company reported net interest income of $34,000 during the quarter, versus net interest expense of $74,000 for the same period last year.

Consistent with its previous guidance, the company expects net sales for the fiscal year ending December 31, 2001 will range from $95m to $100m and fully-diluted earnings per share will range from $0.40 to $0.45. For the third quarter ending September 30, 2001, the company currently expects sales to range from $15m to $17m and fully-diluted loss per share to range between $0.09 and $0.10.


To view related research reports, please follow the links below:-

The 2000 World Market Forecasts for Imported Footwear

Footwear 2000