Earnings Highlights and Review: Deckers Reported Better than Exp - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Earnings Highlights and Review: Deckers Reported Better than Expected Results

Research Desk Line-up: Vera Bradley Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily publishes post-earnings coverage on Deckers Outdoor Corp. (NYSE: DECK) following the Company’s disclosure of its fourth quarter and fiscal 2017 financial results on May 25, 2017. The global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories reported a y-o-y drop in sales and earnings and provided guidance for fiscal 2018 and upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Textile – Apparel Footwear & Accessories industry. Pro-TD has currently selected Vera Bradley, Inc. (NASDAQ: VRA) for due-diligence and potential coverage as the Company announced on May 31, 2017, its financial results for Q1 FY18 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Vera Bradley when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DECK; also brushing on VRA. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the fourth fiscal quarter ended March 31, 2017, Deckers’ net sales dropped 2.4% to $369.5 million compared to $378.6 million for Q4 FY16. On a constant currency basis, net sales decreased 1.5%. The Company’s sales numbers surpassed analysts’ expectations of $357.6 million. For FY17, Deckers’ net sales decreased 4.5% to $1.79 billion compared to $1.88 billion for FY16.

During Q4 FY17, Deckers’ gross margin totaled 43.0% compared to 40.9% for Q4 FY16. The Company’s non-GAAP gross margin was 43.0% for the reported quarter compared to 42.3% for the prior year’s same quarter; the y-o-y increase was due to less domestic promotional activity and supply chain improvements, partially offset by foreign exchange headwinds from the strengthening of the US dollar.

Deckers reported operating loss of $30.9 million for Q4 FY17 compared to operating loss of $27.9 million for Q4 FY16. The Company’s non-GAAP operating income totaled $5.1 million for the reported quarter compared to $5.7 million for the prior year’s corresponding quarter.

For Q4 FY17, Deckers’ net loss was $0.49 per diluted share compared to net loss of $0.73 per diluted share for Q4 FY16. The Company’s non-GAAP diluted earnings per share was $0.11 for the reported quarter compared to $0.11 for the prior year’s same quarter, thus outperforming Wall Street’s forecasts for a loss of $0.06 per diluted share. For FY17, Deckers’ diluted earnings per share were $0.18 compared to diluted earnings per share of $3.70 in FY16. The Company’s non-GAAP diluted earnings per share were $3.82 compared to $4.50 in the year ago same period.

Segment Results

Brand Summary

During Q4 FY17, Deckers’ UGG® brand’s net sales fell 1.1% to $243.0 million compared to $245.6 million for Q4 FY16. The decrease in sales was driven by a decline in domestic wholesale sales, partially offset by an increase in international wholesale and Direct-to-Consumer (DTC) sales. On a constant currency basis, sales increased 0.2%.

The Company’s Teva® brand’s net sales for the reported quarter declined 13.3% to $51.3 million compared to $59.1 million for the prior year’s same quarter, driven by a decrease in global wholesale sales, partially offset by an increase in DTC sales. Deckers’ Sanuk® brand reported a 16.1% decline in net sales to $32.3 million compared to $38.5 million for Q4 FY17 on both a reported and constant currency basis.

Combined net sales of Deckers’ other brands for Q4 FY17 rose 21.2% to $42.9 million compared to $35.4 million for Q4 FY16. The increase was primarily attributable to a $9.3 million, or 32.7% increase, for the HOKA ONE ONE® brand compared to the same period last year.

Channel Summary

During Q4 FY17, Deckers’ wholesale net sales decreased 5.8% to $219.1 million compared to $232.7 million for Q4 FY16. The decrease in sales was driven by a decrease in global wholesale sales. The segment’s DTC net sales grew 3.0% to $150.4 million compared to $145.9 million for the prior year’s same quarter. On a constant currency basis, sales increased 4.3%. DTC comparable sales for the fourth quarter were flat compared to the same period last year.

Geographic Summary

For Q4 FY17, Deckers’ domestic net sales fell 4.3% to $230.0 million compared to $240.4 million for Q4 FY16. The Company’s international net sales for the reported quarter grew 0.9% to $139.5 million compared to $138.2 million for the prior year’s same quarter. On a constant currency basis, sales increased 4.1%.

Balance Sheet

At March 31, 2017, Deckers’ cash and cash equivalents were $291.8 million compared to $246.0 million at March 31, 2016. The Company had no outstanding borrowings under its credit facility at March 31, 2017, compared to $67.0 million at March 31, 2016.

Deckers’ company-wide inventories at March 31, 2017, decreased 0.4% to $298.9 million from $299.9 million at March 31, 2016. On a brand basis, the Company’s inventory for UGG rose 1.4% to $221.3 million, Teva’s inventory dropped 7.7% to $30.7 million, and Sanuk’s inventory decreased 23.4% to $18.6 million, while other brands’ inventory increased 16.5% to $28.3 million.

Outlook

For FY18, Deckers is forecasting net sales in to be between down 2% to flat. The Company expects gross margin to be approximately 47.5% and SG&A expenses as a percentage of sales to be approximately 37%. Deckers Outdoor is projecting non-GAAP diluted earnings per share to be in the band of $3.95 to $4.15.

For Q1 FY18, Deckers is estimating net sales to be up low single digits over the same period last year, and the Company is anticipating non-GAAP diluted loss per share of approximately $1.70 to $1.65.

Stock Performance

On Friday, June 16, 2017, the stock closed the trading session at $68.68, slightly slipping 0.12% from its previous closing price of $68.76. A total volume of 498.92 thousand shares have exchanged hands. Deckers Outdoor’s stock price rallied 25.76% in the last three months, 14.62% in the past six months, and 23.66% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 23.99%. The stock is trading at a PE ratio of 454.83. At Friday’s closing price, the stock’s net capitalization stands at $2.20 billion.

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