Deckers' earnings report shows Teva and Ugg up, but Simple down

Deckers Outdoor Corp. (Nasdaq: DECK) reported a 26 percent increase in third quarter revenues ending Sept. 30, 2002. Net sales increased to $17.7 million compared to $14.0 million in the same period last year. For the third quarter, net sales of Teva products increased to $5.7 million versus $4.5 million in the same period last year. Net sales of Ugg increased to $9.8 million compared to $6.7 million last year, while net sales of the Simple brand were $2.2 million versus $2.8 million in the same period last year.



“Our solid performance was fueled by significant growth in both Teva and Ugg. Teva’s strong sales gain, in its historically soft season, underscores the success we are experiencing with our closed-toed product as well as the continued success of our sandal offering,” said Douglas Otto, chairman and CEO of Deckers, during a conference call. “We also witnessed continued strong demand for Ugg, particularly within the specialty and department store channels. Ugg expanded nearly 50 percent for the period, setting us well on our way toward our fifth consecutive year of double-digit growth for the brand, while at the same time reducing the seasonality of our business.”



For the nine months ended Sept. 30, 2002, net sales increased 4.0 percent to $73.4 million compared to $70.5 million in the same period last year. Excluding the third quarter litigation charges, the pro forma earnings before cumulative effect of accounting change for the first nine months of fiscal 2002 were $2,374,000, or 25 cents per diluted share, compared to pro forma net earnings of $2,396,000, or 25 cents per diluted share, last year. Including the litigation charges, net earnings before cumulative effect of accounting change for the nine months ended Sept. 30, 2002, were $257,000, or 3 cents per diluted share, compared to net earnings of $1,120,000, or 12 cents per diluted share, for the same period last year.