Deckers Outdoor (DECK) Trips; Solid Q4 Overshadowed by Lower Outlook
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Price: $851.71 +2.69%
EPS Growth %: -18.2%
Financial Fact:
Total other (income) expense, net: 1.55M
Today's EPS Names:
NLY, CP, RUSHA, More
EPS Growth %: -18.2%
Financial Fact:
Total other (income) expense, net: 1.55M
Today's EPS Names:
NLY, CP, RUSHA, More
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Shares of UGG footwear maker Deckers Outdoor (Nasdaq: DECK) are reeling after hours Thursday following solid fourth-quarter 2011 results but disappointing 2012 guidance.
Net sales in the fourth quarter increased 40.4 percent to $603.9 million and beat the Wall Street consensus of $565.2 million. UGG brand sales increased 37.7 percent to $568.5 million, while Teva brand sales increased 45.9 percent to $19.4 million. International sales increased 178.6 percent to $147.6 million and Domestic sales increased 21.0 percent to $456.3 million.
Diluted EPS increased 40.1 percent to $3.18, versus the analyst estimate of $3.14. Gross margin was 51.0 percent, compared to 54.2 percent for the same period last year.
"Our fourth quarter results exceeded expectations and were the highest in the history of the Company for sales and profitability," said CEO Angel Martinez.
While fourth-quarter results were solid, guidance was very disappointing.
Deckers sees full year 2012 diluted earnings per share to be approximately flat compared to 2011. This would equal EPS of $5.07 per share, sharply below the consensus of $5.79. The company cited the increase in sheepskin costs in 2012 compared to 2011 for the lower profits. The company expects full year revenue to increase approximately 15 percent over 2011 levels.
The company sees first-quarter 2012 EPS down 50 percent from last year. This would suggest EPS of $0.25, also well below the consensus of $0.63. Deckers is anticipating first-quarter revenue to be up 19 percent over the same quarter last year.
Deckers also announced a $100 million stock repurchase plan.
Shares of Deckers last traded at $81.64, down nearly 10 percent from Thursday's close.
Net sales in the fourth quarter increased 40.4 percent to $603.9 million and beat the Wall Street consensus of $565.2 million. UGG brand sales increased 37.7 percent to $568.5 million, while Teva brand sales increased 45.9 percent to $19.4 million. International sales increased 178.6 percent to $147.6 million and Domestic sales increased 21.0 percent to $456.3 million.
Diluted EPS increased 40.1 percent to $3.18, versus the analyst estimate of $3.14. Gross margin was 51.0 percent, compared to 54.2 percent for the same period last year.
"Our fourth quarter results exceeded expectations and were the highest in the history of the Company for sales and profitability," said CEO Angel Martinez.
While fourth-quarter results were solid, guidance was very disappointing.
Deckers sees full year 2012 diluted earnings per share to be approximately flat compared to 2011. This would equal EPS of $5.07 per share, sharply below the consensus of $5.79. The company cited the increase in sheepskin costs in 2012 compared to 2011 for the lower profits. The company expects full year revenue to increase approximately 15 percent over 2011 levels.
The company sees first-quarter 2012 EPS down 50 percent from last year. This would suggest EPS of $0.25, also well below the consensus of $0.63. Deckers is anticipating first-quarter revenue to be up 19 percent over the same quarter last year.
Deckers also announced a $100 million stock repurchase plan.
Shares of Deckers last traded at $81.64, down nearly 10 percent from Thursday's close.
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