Deckers Outdoor Corp. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2014; Revises Earnings Guidance for the Fourth Quarter and Year ending March 31, 2015
January 29, 2015 at 09:12 pm
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Deckers Outdoor Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company's net sales were $784,678,000 against $736,048,000 a year ago. Income from operations was $214,581,000 against $201,499,000 a year ago. Income before income taxes was $213,316,000 against $200,397,000 a year ago. Net income was $156,706,000 or $4.50 per diluted share against $140,897,000 or $4.04 per diluted share a year ago.
For the nine months, the company's net sales were $1,476,420,000 against $1,292,858,000 a year ago. Income from operations was $223,682,000 against $205,245,000 a year ago. Income before income taxes was $220,188,000 against $203,047,000 a year ago. Net income was $160,374,000 or $4.59 per diluted share against $144,682,000 or $4.15 per diluted share a year ago.
For the fourth quarter ending March 31, 2015, the company expects revenues to increase approximately 10% over the three month period ended March 31, 2014. The company now expects to break even for fourth quarter fiscal year 2015, compared to a diluted loss per share of $0.08 reported for the three months period ended March 31, 2014, down from previous diluted earnings per share guidance of $0.15, driven mostly by gross margin pressure from foreign currency exchange rates.
For the year ending March 31, 2015, the company now expects fiscal year 2015 revenues to be approximately $1.8 billion or 13.5% over the twelve month period ended March 31, 2014, down from the previous guidance of approximately $1.825 billion or 15%. The company now expects fiscal year 2015 diluted earnings per share to be approximately $4.58 or an increase of 12.6% over the twelve month period ended March 31, 2014, compared to the previous guidance of approximately $4.71. This guidance assumes a gross profit margin of approximately 49% and an operating margin of approximately 12.5% compared to previous guidance of approximately 13%. Fiscal year 2015 guidance now assumes that the company's effective tax rate will be approximately 27%, down from previous guidance of 29% due to a change in jurisdictional mix. And it is expecting operating margins of approximately 12.5% compared to earlier guidance of approximately 13%. The company is still assuming gross profit margins for the year of close to 49%.
Deckers Outdoor Corporation specializes in the design, manufacture and marketing of sports, outdoor and casual footwear and apparel. Products are marketed under the UGG, HOKA, Teva, Sanuk and Koolaburra brands. Net sales break down by sales channel as follows:
- wholesale (56.7%);
- direct sales to consumers (43.3%).
Deckers Outdoor Corp. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2014; Revises Earnings Guidance for the Fourth Quarter and Year ending March 31, 2015