Deckers (DECK) - Get Deckers Outdoor Corporation Report rose more than 15% on Friday after the company reported better-than-expected fiscal fourth-quarter earnings and raised its outlook for full-year results.
The maker of UGGs and TeVa footwear rose 11.8% and now says net sales are expected to be up low single digits over the same period last year, and it projects a diluted loss per share of approximately $1.70 to $1.65 a share loss, compared to a $1.89 a share loss a year ago.
For the full year the company said net sales are expected to be in the range of down 2% to flat.
Diluted earnings per share are expected to be in the range of $3.95 to $4.15. "This excludes any charges that may occur from additional store closures and other restructuring charges," the company said in a press release.
Dave Powers, President and CEO, said, "Over the course of the last year, the organization has been hard at work identifying margin enhancing initiatives and detailing plans that significantly improve the profitability of the company. We now anticipate that the $150 million cumulative savings plan announced in February 2017 will drive a $100 million operating profit improvement by fiscal year 2020."
That news is likely to help ease differences between management and activist investor Marcato, who has been trying to shift direction at the company.
And recently a third activist fund has accumulated shares in Deckers, putting the company under even more pressure to consider a sale as it reviews strategic alternatives.
Corvex Management's Keith Meister this month issued his quarterly investment portfolio report, which included a number of new investments including a note that the fund had accumulated about 427,000 shares, with a $25 million valuation, in Deckers Outdoor.