Deckers Reports Strong Q3, Ups Guidance

Ugg boots continued to drive sales at Deckers Outdoor Corp. during the third quarter.
 
For the quarter ended Sept. 30, the company’s earnings increased 30 percent to $33.8 million, or $2.59 per diluted share, up from $26 million, or $1.97, a year ago. Sales during the quarter rose 15.8 percent to $228.4 million, compared with $197.3 million during the same quarter of last year.
 
Sales of the Ugg brand increased 19.1 percent to $212.8 million, versus $178.7 million for the prior year quarter.
 
“Our Ugg brand sales continue to be led by our core boot category, with the performance of several new styles driving the strong start to the fall selling season,” Angel Martinez, chairman, president and CEO of Deckers, said in a statement. “Our focus on broadening the depth of our collections has enabled us to increase shelf space and attract new consumers to the brand.”
 
Based on the success of the quarter, the company raised its full-year earnings and revenue forecast. The company now expects sales to increase 13 percent over 2008, with a 9 percent rise in earnings over the $7.27 it issued in 2008. Earlier, the company had issued a guidance of a 9 to 10 percent increase in sales, and flat earnings.