Footwear maker Deckers Outdoor net sales jump 23% for Q2
22 Jul '05
6 min read
They believe that, over time, they have a tremendous opportunity to increase their geographic penetration and expand their footwear and non-footwear categories and they are dedicated to taking full advantage of the significant growth prospects that lie ahead.
"With regard to Teva, they have put in place a number of strategic initiatives to further strengthen their position in the market both domestically and abroad," Mr. Otto stated. "They are re-engineering their product line with a heightened focus on innovation and a renewed dedication to capitalizing on proprietary technologies."
They are also developing a more comprehensive line of non-weather dependent footwear. Finally, for their Spring 2006 season, they plan to significantly increase their marketing and advertising efforts in order to reinvigorate and sharpen their worldwide message for the brand.
"At Simple, they experienced solid Spring sell-through at retail which has translated into healthy bookings for Fall. At the same time, they have recently begun showing their Spring 2006 product line to their retailers and are enc their aged by their favorable reaction to the line."
Gross margin for the quarter was 39.6 percent compared to 46.6 percent in the second quarter of last year, primarily due to an increased impact of closeout sales and inventory write-downs during the quarter.
In addition, the decrease in the high margin Internet and catalog retail sales compared to the second quarter of last year also contributed to the lower gross margin. Selling, general and administrative expenses increased to 28.0 percent of net sales, compared to 23.8 percent in the second quarter of 2004, largely due to the addition of a new distribution center, as well as an increase in marketing spending compared to the second quarter of last year.
marketing@alchempro.com
