Deckers Outdoor Corporation announced financial results for the fourth quarter and fiscal year ended December 31, 2007.
Fourth Quarter Highlights:
• Net sales increased 56.2% to $194.2 million versus $124.4 million last year.
• Diluted EPS increased to $2.69 versus $0.95 on a GAAP basis. On a non-GAAP basis excluding the restatement adjustments of $0.3 million, or $0.02 per diluted share, and the impairment charge of $11.0 million, or $0.85 per diluted share, both incurred in the fourth quarter of fiscal 2006, fourth quarter 2007 diluted EPS increased 47.8% over last year.
• UGG Brand sales increased 61.8% to $177.7 million compared to $109.9 million a year ago.
• Total domestic sales increased 54.9% to $177.7 million compared to $114.7 million in the prior year.
• Total international sales increased 71.1% to $16.5 million compared to $9.7 million last year.
Fiscal 2007 Highlights:
• Net sales increased 47.5% to $448.9 million versus $304.4 million in 2006.
• Diluted EPS increased to $5.06 versus $2.38 in 2006 on a GAAP basis. On a non-GAAP basis excluding the restatement adjustments of $0.9 million, or $0.07 per diluted share, and the impairment charge of $11.0 million, or $0.85 per diluted share, both incurred in fiscal 2006, fiscal 2007 diluted EPS increased 53.3% over fiscal 2006.
• UGG Brand sales increased 64.4% to $347.6 million compared to $211.5 million in fiscal 2006.
• Total domestic sales increased45.3% to $386.6 million versus $266.1 million a year ago.
• Total international sales increased 62.6% to $62.3 million compared to $38.3 million last year.
• Cash, cash equivalents and short-term investments increased to $168.1 million compared to $98.9 million a year ago.
Angel Martinez, President and Chief Executive Officer, stated, "Our record fourth quarter results, which underscore the growing popularity of the UGG Brand worldwide, represent a great way to end another strong year for Deckers. During fiscal 2007 we significantly increased sales and diluted earnings per share, consistently exceeded internal and external expectations, and ended the year with more than $168 million in cash, cash equivalents and short-term investments on our balance sheet.
From a strategic standpoint, we further diversified the UGG Brand and expanded its selling season year round, repositioned the Teva Brand as an outdoor, performance-oriented brand, and leveraged the Simple Brand's position as the leader in sustainable footwear into broader market opportunities.
In addition, we expanded our international presence and grew our Consumer Direct business by opening two new retail stores and enhancing our websites. Looking ahead, we believe our growth prospects have never been more compelling, and we are confident that we will continue to take the right approach toward achieving our long-term objectives and creating value for our shareholders."
Division Summary:
UGG:
UGG Brand net sales for the fourthquarter increased 61.8% to $177.7 million versus $109.9 million for the same period a year ago. Consumer demand for the entire women's fall line, including boots, slippers, casuals and the fashion collection, contributed to the UGG Brand's better than expected performance. In addition, the expanded men's and kids' offerings performed very well. For the full year, UGG Brand sales increased 64.4% to a record $347.6 million versus $211.5 million in 2006.
