Footwear maker Deckers Outdoor net sales jump 23% for Q2
22 Jul '05
6 min read
Overall, inventories increased to $66.7 million at June 30, 2005 from $19.6 million at June 30, 2004 primarily related to Fall 2005 UGG inventory. The Company made a strategic decision to bring in its Fall UGG inventories much earlier in the year this year than it did last year in order to ensure more timely deliveries to customers in 2005.
UGG inventories were $55.6 million at June 30, 2005 compared to $10.0 million at June 30, 2004; Teva inventories were $8.6 million at June 30, 2005 compared to $7.3 million at June 30, 2004; and, Simple inventories were $2.5 million at June 30, 2005 compared to $2.3 million at June 30, 2004. The Company's management stated that it expects the inventory level to be reduced substantially by the end of the year.
Deckers reaffirmed the higher end of its previous guidance for net sales and earnings for fiscal 2005. For the year, Deckers now expects net sales between $251 million to $258 million and diluted earnings per share between $2.35 to $2.43.
For the third quarter, Deckers expects net sales of $68 million to $71 million and diluted earnings per share of $0.58 to $0.61. For the fourth quarter, Deckers currently forecasts net sales to range from $78 million to $82 million and diluted earnings per share to range from $0.87 to $0.92.
Deckers now expects 2005 Teva sales to be $88 million to $89 million, Simple sales to be $10 million to $11 million and UGG sales to be $153 million to $158 million.
marketing@alchempro.com
