Deckers sales down but earnings up for second quarter
Deckers Brands, the Goleta-based footwear, apparel and accessories company, announced net sales of $485.9 million and earnings per diluted share of $1.21 for the second quarter ended Sept. 30.
Sales were down slightly from $486.9 million for the same period last year, primarily for the company’s UGG and Teva brands, but earnings were up 9 percent from second quarter 2016. Operating income was $54 million, up 5.5 percent.
Wholesale and distributor net sales remained largely the same for the second quarter while direct-to-consumer sales decreased 3.2 percent over 2016. Domestic net sales increased 3.6 percent to $312.2 million for the quarter, offset by a 6.3 percent decrease in international net sales, down to $173.7 million.
President and CEO Dave Powers expressed his approval of the earnings results and the company’s progress heading into the holiday sales season “despite a challenging consumer environment,” in an earnings statement Oct. 27.
At the end of the quarter, Deckers had cash and cash equivalents of $110 million, up from $99.8 million the prior year. Outstanding borrowings were down 11 percent from the previous year to $310.4 million and company-wide inventories decreased 2.9 percent to $578 million.
The company updated its fiscal 2017 outlook for net sales to fall 1.5-3 percent. Earnings per diluted share for the year are expected to be in the range of $4.05-$4.25 following third quarter fiscal 2017 net sales flat to down 2 percent from last year.
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