Deckers Outdoor reports record Q4 financial results
28 Feb '07
3 min read
Deckers Outdoor Corporation announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2006.
The following results and accompanying condensed consolidated balance sheets and statements of income (unaudited) are presented on a GAAP basis excluding an expected non-cash impairment charge discussed below and its related tax benefit.
Fourth Quarter Highlights:
Net sales increased 36.7% to $124.4 million versus $91.0 million last year; ahead of previous guidance range of $107.0 million to $110.0 million.
Gross margin increased 790 basis points to 48.5% compared to 40.6% a year ago. Preliminary diluted EPS increased 93.6% to $1.82 versus $0.94 last year; ahead of previous guidance range of $1.27 to $1.30.
Fiscal 2006 Highlights
Net sales increased 15.0% to $304.4 million versus $264.8 million in 2005; ahead of previous guidance range of $287.0 million to $290.0 million.
Gross margin increased 430 basis points to 46.4% compared to 42.1% last year. Preliminary diluted EPS increased 33.1% to $3.30 versus $2.48 in 2005; ahead of previous guidance range of $2.75 to $2.78. Cash and short-term investments increased to $98.9 million compared to $53.2 million a year ago. Inventories decreased to $32.4 million versus $33.4 million last year.
Deckers also announced that it recently conducted its annual impairment evaluation of the intangible assets on its balance sheet. Based on preliminary results, the Company expects to record a non-cash, pre-tax charge in the fourth quarter in the range of $14 million to $16 million, reflecting the write-down of the intangible asset related to Teva's trademarks. The exact amount of the charge will be recorded when the Company completes its analysis and files its Form 10-K with the Securities & Exchange Commission on or prior to March 16, 2007.
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