UGG sales boost Decker’s Q1 profits
24/04/2009
According to newly released, first-quarter financial results at Deckers Outdoor Corporation, increased UGG sales led to a 9% increase in gross profit.
UGG brand sales for first quarter rose 66.9% to $91.4 million compared with $54.8 million for the same period last year. However, Teva brand sales fell 5.7% to $35.6 million compared with $37.7 million during the same quarter last year and Simple brand sales fell 13% to $4.4 million compared with $5.1 million.
The company’s gross profit margin for the first quarter was 43.9% compared with 47.3% for the first quarter last year.
Angel Martinez, president, chief executive officer and chairman of the board of directors, said: “Our first quarter sales and earnings exceeded plan, driven by higher-than-expected domestic and international demand for UGG products as the brand’s spring collection of boots, sandals, and casual footwear sold through very well at retail.He continued: “Our UGG brand’s momentum continues to grow and we are now more optimistic about the brand’s prospects evidenced by our improved outlook for the full year.”
Based upon the UGG brand’s better-than-expected first-quarter results, partially offset by lower projected sales forecasts for Teva, Simple, and TSUBO, the company has adjusted its full-year revenue outlook. It now expects full-year revenue to increase approximately 7- 9% over 2008, compared with previous guidance of approximately 6-9%. It expects second quarter revenue to increase by approximately 10% over 2008 levels.
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