NEW YORK — Deckers Outdoor Corp. is sitting on a pile of cash after reporting strong second-quarter results, and the firm said it is still evaluating acquisition opportunities, albeit “being very patient there.”
“We’re getting great returns on capital with our current business, so we’re going to be cautious. If nothing comes along, we’ll continue to build the large cash balances and consider other uses [for it],” said Deckers CFO Tom George on a conference call last Thursday.
As of June 30, Deckers had cash and cash equivalents of $333.7 million, up 6 percent from $315.9 million last year.
Angel Martinez, chairman, president and CEO, said on the call that the company will focus on delivering a diversified product offering and fueling momentum in overseas markets.
“We are tracking to achieve our goal for 2012 of having approximately 30 percent of our annual sales come from outside the U.S.,” Martinez said, adding that international revenues were up 55 percent in the quarter.
Analysts also said the company’s international plans will be key to its story.
“They’re just scratching the surface right now. But that business is growing at a level that shows there is opportunity continuing,” said Susquehanna Financial analyst Christopher Svezia.
Goleta, Calif.-based Deckers reported last Thursday that its second-quarter profit tripled, thanks to strong sales for the Ugg and Teva brands.
Net income was $9 million, or 23 cents a share, up from $2.9 million, or 9 cents a year ago. Deckers has also raised its sales and earnings outlook for the back half.
Net sales jumped 34 percent to $137.1 million, up from $102.5 million last year.