Deckers Lifts Full-Year Outlook on Strong Q1

Strong demand for the spring collections of its major brands drove a better-than-expected result at Deckers Outdoor Corp. in the first quarter of fiscal 2015.

The Goleta, Calif.-based firm reported double-digit sales growth of its Ugg, Teva, Sanuk and Hoka brands for the period, in addition to a lift in initial wholesale shipments of Ugg styles for fall.

Deckers posted a 24.3 percent increase in first-quarter sales to $211.5 million, beating the Street’s forecast for revenue of $192 million.

The company posted a diluted loss per share of $1.07, compared to a loss of 85 cents a year earlier, a narrower loss than analysts’ consensus forecast of $1.28.

Angel Martinez, Deckers president, CEO and company chairman, said sales were strongest in its direct-to-consumer division in the quarter.

“We believe that our omnichannel initiatives aimed at elevating the consumer experience, strengthening customer connections and improving service levels continue to yield positive results,” Martinez said.

“As we head toward our busiest selling season, we believe we are well-positioned from a merchandise, marketing and inventory standpoint to capitalize on the opportunities we are creating throughout each of our distribution channels and geographic regions,” he added.

As a result of the strengthened outlook, Deckers raised its expected sales growth for the full year to 14 percent year-on-year, up from its previous forecast of 13 percent.

The company expects to post a full-year earnings-per-share increase of 14.5 percent, up from previous guidance of 13.5 percent.

By division, Ugg sales rose 22.8 percent to $123.3 million. Teva sales were 25.7 percent higher at $39.3 million, and Sanuk sales gained 19.6 percent to reach $36 million.

The combined sales of its other brands rose 54.5 percent to $12.9 million in the first quarter.

Deckers shares closed 25 cents higher at $85.23 on Thursday.

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