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Published
Feb 2, 2018
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Ugg parent company Deckers Outdoor announces far better-than-expected Q3 performance

Published
Feb 2, 2018

Footwear and apparel company Deckers Outdoor Corp. has declared a significantly improved third quarter performance. Overall sales during the period rose 6.6 percent to $810.5 million, up from $760.35 million last year.


Deckers



The California-based company, that battled activist investor Marcato for most of last year, had previously expected Q3 fiscal 2018 net sales to be in the range of $735.0 million to $745.0 million.

The company said its bottom line clocked in at $159.20 million, or $4.97 per share. This was higher than $4.11 per share in the same quarter last year, and significantly higher than the $3.82 per share that analysts had expected, according to a compilation by Thomson Reuters.

The market reacted favorably to the results — shares of company were up 7.7 percent in Thursday after-hours trading.
 
A number of strategic initiatives have contributed to the strong performance, including product innovations, a store fleet optimization plan and the enhancement of e-commerce capabilities to capitalize on incremental sales. 
 
“Our third quarter results, which meaningfully exceeded expectations, underscore the progress we have made developing a stronger foundation to support profitable growth,” said Dave Powers, President and Chief Executive Officer. “Our refined product strategies, enhanced consumer messaging and wholesale account optimization efforts resulted in much stronger full price selling for our brand portfolio during the key holiday season.
 
Mr Powers also named favorable weather patterns as a contributor to a successful quarter, powering sales of key brand Ugg, which has hurt from weakening sales since its peak popularity in the 2000s. The brand’s sales climbed 4.3 percent to $734.7 million.
 
Ugg wasn’t the only hero in the story. Running shoe brand Hoka One One — which earlier this month added a slew of top athlete endorsers to its Elite team — saw sales leap 65.7 percent to $31.8 million.
 
Revenue for Teva also increased 33.4 percent to $19.5 million.
 
Buoyed by its Q3 performance, Deckers has raised its fiscal year 2018 outlook. Net sales are now expected to be in the range of $1.873 billion to $1.878 billion.

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