Crocs and Deckers Outdoor Revealed These Insights During Earnings
Deckers Outdoor Corporation (NASDAQ:DECK) reported net income above Wall Street’s expectations for the third quarter. Net income for Deckers Outdoor Corporation rose to $62.3 million ($1.59 per share) vs. $42.1 million ($1.07 per share) in the same quarter a year earlier. This marks a rise of 47.9% from the year earlier quarter. Revenue rose 49.1% to $414.4 million from the year earlier quarter. DECK beat the mean analyst estimate of $1.34 per share. It beat the average revenue estimate of $387 million.
“The third quarter was an exceptionally strong period of sales and earnings growth for our Company led by the UGG brand,” stated Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors. “We experienced higher domestic wholesale demand for the UGG brand fall line versus a year ago driven by the introduction of several new styles and new collections, including a broader assortment of men’s product. At the same time, our international sales more than doubled fueled by the growth in wholesale unit volumes in the United Kingdom and Benelux, coupled with an increase in sales resulting from our conversion to wholesale operations in these regions. Our retail stores, which now total 37 worldwide, performed very well during the third quarter highlighted by a 15.4% same store sales increase. The growth of the spring line earlier this year combined with the solid start to fall has created strong momentum for the UGG brand as we head into the holidays.” Mr. Martinez continued, “Fiscal 2011 is on track to be another record year for Deckers Outdoor Corporation with the UGG brand poised to surpass $1 billion in annual sales. Equally important, we have made strategic investments that have strengthened our global operating platform and better positioned the company for sustainable long-term growth. These included our acquisition of the Sanuk brand, our hiring of key personnel to spearhead international expansion, additional marketing and advertising investments, and our planned opening of a total of 17 new company-owned stores in fiscal year 2011. As we look out to next year, we remain optimistic about our growth opportunities despite some of the current headwinds facing the global economy. However, we will experience further increases in raw material prices in 2012.”
Competitors to Watch: Crocs, Inc. (NASDAQ:CROX), NIKE, Inc. (NYSE:NKE), The Timberland Company (NYSE:TBL), Skechers USA, Inc. (NYSE:SKX), Steven Madden, Ltd. (NASDAQ:SHOO), The Global Housing Group (GLHO), LaCrosse Footwear, Inc. (NASDAQ:BOOT), Wolverine World Wide, Inc. (NYSE:WWW), and Phoenix Footwear Group, Inc. (AMEX:PXG).
Crocs, Inc. (NASDAQ:CROX) reported higher profit for the third quarter as revenue showed growth. Net income for Crocs, Inc. rose to $30.2 million (33 cents per share) vs. $25 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 20.8% from the year earlier quarter. Revenue rose 27.5% to $274.9 million from the year earlier quarter. CROX beat the mean analyst estimate of 32 cents per share. Analysts were expecting revenue of $274.3 million.
John McCarvel, President and Chief Executive Officer, stated: “We continued to experience strong global demand versus the prior year period, particularly in Asia. The performance of our spring / summer 2011 product line and the composition of our backlog at September 30, 2011 underscores the progress we have made diversifying Crocs beyond its clog origins. We still remain confident that our long-term brand and growing selection of sneakers, casual shoes, and boots have the ability to penetrate the cold weather selling season in each of our geographic regions. While these are competitive categories with established leaders, we believe we can continue to capture market share and further reduce the seasonality of our business over the long-term.”
Competitors to Watch: Deckers Outdoor Corp. (NASDAQ:DECK), NIKE, Inc. (NYSE:NKE), Skechers USA, Inc. (NYSE:SKX), The Timberland Company (NYSE:TBL), Wolverine World Wide, Inc. (NYSE:WWW), Steven Madden, Ltd. (NASDAQ:SHOO), LaCrosse Footwear, Inc. (NASDAQ:BOOT), Brown Shoe Company, Inc. (NYSE:BWS), and Phoenix Footwear Group, Inc. (AMEX:PXG).