Reuters
Jul 24, 2009
Deckers posts surprise second quarter profit; sees weak fourth quarter
Reuters
Jul 24, 2009
July 23 (Reuters) - Footwear maker Deckers Outdoor Corp (DECK.O) posted a surprise second-quarter profit, helped by cost controls, but forecast a weak fourth quarter, when sales of its trademark sheepskin boots are traditionally strongest.
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Shares of the maker of UGG boots were down 12 percent in trading after the bell after-hours closing at $77.21 on the Nasdaq.
For the second quarter ended June 30, the Goleta, California-based company posted a profit of $2.9 million, or 22 cents a share, compared with a loss of $3.8 million, or, 29 cents a share, a year ago.
Excluding items, the company posted a profit of 26 cents a share in the quarter, compared with analysts' average expectations of a loss of 8 cents per share, according to Reuters Estimates.
Net sales at Deckers, whose rivals include Skechers USA Inc (SKX.N) and Timberland (TMB.N), rose 13 percent to $102.5 million, mostly on a a 23 percent increase in UGG sales that offset declines at its Teva and Simple brands.
The company reiterated its previous full-year outlook for adjusted earnings to be flat to up slightly over 2008 earnings of $7.27 per share, but forecast fourth-quarter revenue to decrease slightly while earnings per share is expected to decline about 4 percent from 2008 levels. (Reporting by Abhishek Takle in Bangalore; Editing by Unnikrishnan Nair)
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