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UPDATE: Deckers Outdoor Corp (DECK) Tops Q1 EPS by 7c, COO to Retire, Updates Outlook

April 24, 2014 4:08 PM EDT
(Updated - April 24, 2014 4:09 PM EDT)

Deckers Outdoor Corp (NASDAQ: DECK) reported Q1 EPS of ($0.08), $0.07 better than the analyst estimate of ($0.15). Revenue for the quarter came in at $294.7 million versus the consensus estimate of $282.13 million.

Zohar Ziv Retirement

The Company today announced that Zohar Ziv will retire as Chief Operating Officer after over 8 years with the company. In order to facilitate a smooth transition which is expected to be concluded by the end of the year, Mr. Ziv is expected to stay until his successor is named. The Company is commencing a search for his successor.

"I want to thank Zohar for his many years of service to Deckers," commented Mr. Martinez. "His contributions to the development of our international operations, world class supply chain and infrastructure are numerous. More importantly, his influence on shaping our strong corporate culture is immeasurable. Personally, he has been a tremendous friend and trusted advisor since he joined the company eight years ago. I look forward to maintaining our close ties and continuing to benefit from his sage guidance."

Mr. Ziv said, "My time at Deckers has been the most rewarding period of my career. I am extremely proud of the terrific people I've worked with and everything we've accomplished over the past several years. I'm very confident that the company is well positioned for continued success. I look forward to watching the company continue its expansion as I pursue personal interests and spend more time with my family."

Full Fiscal Year 2015 Outlook for the Twelve Month Period Ending March 31, 2015

Based upon current visibility, the Company expects fiscal year 2015 revenues to increase approximately 13.0% over the twelve month period ended March 31, 2014.
The Company expects fiscal year 2015 diluted earnings per share to increase approximately 13.5% over the twelve month period ended March 31, 2014. This guidance assumes a gross profit margin of approximately 49.4% and an operating margin of approximately 13.0%.
The Company expects fiscal year 2015 SG&A expenses as a percentage of sales to be approximately 36.4%. Among other items, these expenses include increased marketing and supply chain costs, investments in IT infrastructure, expenses related to management reorganization, and operating costs associated with opening new stores in 2013 and 2014.
The Company expects fiscal year 2015 UGG brand revenues to increase approximately 11% over the twelve month period ended March 31, 2014.
The Company expects fiscal year 2015 Teva brand revenues to increase approximately 11% over the twelve month period ended March 31, 2014.
The Company expects fiscal year 2015 Sanuk brand revenues to increase approximately 15% over the twelve month period ended March 31, 2014.
Combined fiscal year 2015 net sales of the Company's other brands are expected to be approximately $82.0 million compared to $48.6 million for the twelve month period ended March 31, 2014.
Fiscal year 2015 guidance also assumes that the Company's effective tax rate will be approximately 29.0%.

First Quarter Fiscal Year 2015 Outlook for the Three Month Period Ending June 30, 2014

The Company currently expects first quarter 2015 revenues to increase approximately 12.0% over the three month period ended June 30, 2013 calendar year levels, and expects to report a first quarter fiscal year 2015 diluted loss per share of approximately $(1.33) compared to a diluted loss per share of $(0.85) reported for the three month period ended June 30, 2013.
As a reminder, a significant amount of our operating expenses are fixed and spread evenly on an absolute dollar basis throughout each quarter. This includes the costs associated with the 28 new stores that were not open until the second half of 2013. Therefore, we expect our earnings to decline in the first half of calendar 2014 as compared to the first half of 2013, which are typically our lowest volume sales quarters. We expect the majority of our earnings increase in fiscal year 2015 to come in the second and third quarters – the three month periods ending September 30, 2014 and December 31, 2014 with the breakdown between those two periods to be similar to last year.

For earnings history and earnings-related data on Deckers Outdoor Corp (DECK) click here.



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