Deckers Beats, Raises Guidance

The footwear company posts a 29-cent per-share earnings beat in the third quarter.
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Deckers Outdoor

(DECK) - Get Report

delivered a third-quarter earnings beat after the market close Thursday and also raised its outlook for the rest of the year.

The footwear company posted third-quarter net income of $10.6 million, or 83 cents a share, beating handily the 54-cent Thomson First Call analyst estimate as well as the company's own guidance range of 51 cents to 54 cents a share. Last year, Deckers reported net income of $8.2 million, or 63 cents a share.

The Goleta, Calif.-based company posted third-quarter net sales of $82.3 million, vs. the $69.2 million it posted in the prior-year period, and well ahead of the analyst estimate of $73.8 million and its own previous guidance range of $71 million to $74 million.

Sales in its Teva, Simple and UGG brands each showed year-over-year improvement. Gross margin increased to 45.2% from the 42% a year ago.

Deckers raised its fourth-quarter sales guidance to a range of $107 million to $110 million and EPS of $1.27 to $1.30, vs. previous expectations of $103 million to $106 million and $1.23 to $1.26, respectively. Analysta are looking for fourth-quarter earnings of $1.26 a share on $105.9 million in revenue.

On a full-year basis, the company raised sales guidance to a range of $287 million to $290 million, from its previous range of $272 million to $278 million. It also raised its full-year EPS estimates to a range of $2.75 to $2.78, compared to previous expectations of $2.39 to $2.45. Analysts are expecting $2.46 a share in earnings on $277.4 million in revenue.

Shares were moving higher by 10 cents, or 0.2%, at $49.52 in recent after-hours trading.