Deckers net sales down to 376.4 millions dollars

Deckers Outdoor Corporation’s net sales for third quarter ended

September 30, 2012 were 376.4 million dollars (Rs 2,015 crores) compared to 414.4 million dollars (Rs 2,219 crores) for the same period last year. Gross margin was 42.3 percent compared to 49.0 percent for the same period last year. Diluted earnings per share were 1.18 dollars (Rs 63.1) compared to 1.59 dollars (Rs 85.1) for the same period last year.

UGG brand sales decreased 11.6 percent to 332.8 million dollars (Rs 1,782 crores) compared to 376.7 million dollars (Rs 2,017 crores) for the same period last year. Teva brand sales increased 22.1 percent to 17.9 million dollars (Rs 95 crores) compared to 14.7 million dollars (Rs 78 crores) for the same period last year. Sanuk brand sales increased 17.6 percent to 18.3 dollars (Rs 979) compared to 15.6 million dollars (Rs 83 crores) for the same period last year.

Domestic sales decreased 6.1 percent to 242.2 million dollars (Rs 1,296 crores) compared to 257.9 million dollars (Rs 1,318 crores) for the same period last year. International sales decreased 14.2 percent to 134.2 million dollars (Rs 718 crores) compared to 156.4 million dollars (Rs 8 37 crores) for the same period last year. Retail sales increased 12.8 percent to 39.1 million dollars (Rs 209 crores) compared to 34.7 million dollars (Rs 185) for the same period last year; same store sales decreased 13.1 percent for the thirteen weeks ending September 30, 2012 compared to the thirteen weeks ending October 2, 2011.

“Over the past two years, we have raised prices on selective key styles to help mitigate the impact of an 80 percent increase in our sheepskin and raw material costs over this same period,” stated Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors.

“We recently negotiated fall 2013 product costs and based upon the decreases in our product costs for Fall 2013, together with the adverse effect of our price increases, we made the decision to adjust our domestic pricing in mid-September on select Classic styles, retroactive to all orders shipped since July 1,” added Martinez.

Based on third quarter results combined with reduced sales projections, the company is revising its full year outlook. The company now expects 2012 sales to increase approximately 5 percent over 2011 levels, compared to previous guidance of approximately 14 percent. The company now expects 2012 diluted earnings per share to decrease approximately 33 percent from 2011 levels, compared to previous guidance for diluted earnings per share to decrease approximately 9 percent to 10 percent.