Deckers steps up sales
Shares of Goleta-based Deckers Outdoor Corp. jumped 14 percent in after-hours trading as the owner of Ugg, Teva and other casual footwear brands beat Wall Street expectations and said the rest of the year is on track.
Deckers said its acquisition of Hoka One One helped boost third-quarter sales 3 percent to $386.7 million; sales of its flagship Ugg brand gained 1.3 percent. The company, which is building a new headquarters on Hollister Avenue, said a new web site and more retail stores also helped.
Coming as the Christmas selling season is just getting under way, the report helped to diminish Wall Street skepticism about Deckers’ ability to manage its inventories and the durability of the Ugg brand in the face of changing footwear fashions.
The company earned $33.1 million or 95 cents per share, blowing away analyst excpectations of 72 cents. Last year’s earnings were sharply higher at $43.1 million or $1.18 per share.
Deckers said it expects earnings per share to be 32 percent higher than last year for the fourth quarter, down slightly from earlier guidance of 38 percent. The Associated Press said analysts were expecting a 40 percent increase.
Deckers said it expects sales to be up about 14.5 percent compared to 2012.
Deckers shares gained 26 cents to $58.10 in regular trading but after the earnings announcement they jumped about 14 percent to the $66 range.