Apr 29, 2011
Deckers trumps Street as UGG boots stay popular, sees Q2 loss
Apr 29, 2011
April 28 - Deckers Outdoor Corp reported a better-than-expected quarterly profit, spurred by continued demand for its sheepskin UGG boots, but said it would post a loss in the second quarter as it changes its business model in some European markets.
Sneakers by UGG Australia
Shares of the company fell 7 percent.
UGG boots have been the chief growth driver for the company, which also owns the Teva, Tsubo and Simple brands. The UGG fad has now helped the company top earnings expectations for at least 10 consecutive quarters.
For the first quarter, the company earned $19.2 million, or $49 cents a share, compared with $17.9 million, or $46 cents a share, a year ago. It also raised its full-year view.
Revenue at the company, which competes with Skechers USA Inc and Timberland , rose 31.4 percent to $204.9 million, as the spring collection of UGG boots resonated well with customers.
Analysts on average were expecting earnings of 45 cents a share on revenue of $202.8 million, according to Thomson Reuters I/B/E/S.
Goleta, California-based Deckers said some $50 million in sales would be shifted to the third quarter as it changed to a wholesale model for certain brands in the United Kingdom and the UGG and Simple brands in Benelux.
For the second quarter, Deckers expects to report a loss of about 25 cents.
Shares of the company were down 7 percent at $88.20 in extended trade. They closed at $94.45 on Nasdaq on Thursday.
(Reporting by Viraj Nair and Nivedita Bhattacharjee)
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