Deckers Brands — owner of Ugg and several other footwear brands — reported better-than-expected fourth-quarter results this week.
Since Thursday’s aftermarket earnings release, the company’s shares have been booming — ending the Friday trading day up nearly 19 percent, to $67.21.
The company’s net sales decreased 2.4 percent, to $369.5 million, but beat forecasts for sales of $357.6 million. Revenues for the Ugg brand — the biggest contributor to the company’s overall sales — decreased 1.1 percent, to $243 million, during the period. Despite the decline, sales for the brand appear to moving in the right direction following last quarter’s 5 percent decline. (Deckers said Q4’s decrease in Ugg revenues was driven by a drop in domestic wholesale sales, partially offset by an increase in international wholesale and direct-to-consumer sales.)
Overall, Deckers said it was able to narrow its reported net loss during the fourth quarter to 12 million, or 49 cents per share, from a net loss of $22.9 million, or 73 cents per share. Adjusted earnings per share were flat year-over-year at 11 cents, significantly topping analysts’ projections calling for a loss of 7 cents per share.
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Regarding the other brands in its stable, Deckers said revenues at Teva decreased 13.3 percent, to $51.3 million, driven by a decrease in global wholesale sales, partially offset by an increase in DTC sales, according to the company.
Sanuk revenues declined 16.1 percent, to $32.3 million, driven by a decrease in global wholesale and DTC sales, Deckers said.
Combined net sales of the company’s other brands for the fourth quarter increased 21.2 percent, to $42.9 million.
For the year ahead, Deckers also provided a better-than-expected full-year guidance. The company predicts fiscal year 2018 adjusted EPS in the range of of $3.95 to $4.15, which came in well ahead of consensus expectations of $3.79. Net sales are expected to be in the range of down 2 percent to flat.