Thursday, Footwear producer Deckers Outdoor Corp. (DECK) reported a loss for the second-quarter compared to a profit last year, due to Teva brand impairment charge. However, net sales increased 72.8% over prior-year quarter. The company issued guiodance for third and fourth quarters and raised FY08 outlook.
Goleta, California-based company reported a second quarter loss of $3.82 million or $0.29 per share against a profit of $2.26 million or $0.17 per share in the prior-year quarter. Excluding Teva brand impairment charge, net income was $5.19 million while earnings per share increased by 129.4% to $0.39 per share. The EPS estimate of seven analysts polled by First Call/Thomson Financial was $0.24.
Net sales rose to $91.11 million from $52.73 million in the corresponding quarter last year. The revenue estimate of seven analysts polled by First Call/Thomson Financial was $78.58 million.
For the quarter, UGG brand sales increased by 130.6% to $60.6 million from $26.3 million a year ago period and Teva brand net sales increased by 4.8% to $25.2 million from $24.1 million in the same period last year. Simple brand net sales for the second quarter increased by 94.0% to $4.7 million from $2.4 million in the same period last year. The acquired TSUBO brand did not have a material impact for the quarter. Second quarter Sales for the eCommerce business increased by 31.7% to $6.4 million from $4.9 million while retail store business increased by 143.2% to $3.1 million from $1.3 million for the same period a year ago. The inventories was $112.8 million compared to $66.3 million a year ago.
For the six-months period, net income decreased to $7.47 million or $0.57 per share, from $11.71 million or $0.90 per share in the year ago period. Net sales was $188.65 million, higher than $125.30 million reported in the previous year.
Looking forward, The company expects third quarter 2008 revenue and diluted earnings per share to increase approximately 34% and 12%, respectively, over 2007 levels. The Company views fourth quarter 2008 revenue and diluted earnings per share to increase approximately 45% and 42%, respectively, over 2007 levels. Fiscal year 2008 earnings per share guidance was increased by 34% over 2007 level, from previous guidance of approximately 27% and revenue guidance was increased by 43% over 2007, from previous guidance of 31%.
The third quarter EPS estimate of seven analysts polled by First Call/Thomson financial is $2.0 and revenue estimate of seven analysts is $171.79 million. The FY08 EPS estimate of eight analysts polled by First Call/Thomson Financial is $6.50 while revenue estimate of seven analysts is $599.15 million.
Deckers ended its Thursday trade at $115.16, up 2.84% on the Nasdaq. In the after hours trading the stock was down 2.18% at $112.65.
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