DId you hear?… Deckers reports 4Q drop in net sales

Deckers Outdoor Corporation, owner of the Teva, Simple, and Ugg footwear brands, reported a 4Q drop in net sales to $20.9 million in 2001 versus $23.7 million during 2000. For the year, Teva recorded $61.2 million, down from $79.7 million in 2000 — thanks in large part to the bankruptcy of one of its largest retail accounts, Track n’ Trail. Simple sales also declined, to $10.9 million from $16.3 million in 2000. The lone success story for Deckers was Ugg, experiencing records sales of $19.2 million, up 25 percent from $15.3 million in 2000. Doug Otto, chairman and CEO of Deckers told analysts and press in a conference call that he expected the sales decline to flatten out with anticipated company sales for 2002 to be anywhere from even to down 4 percent. Ugg sales should continue to grow, largely on the strength of the company’s efforts to expand that brand’s distribution through licensing the Ugg trademark to sportswear and outerwear, and even bedding and linens. SNEWS® View: Bedding and linens? Martha Stewart, Ugg isn’t. Perhaps the company surmises that the SUV-driving winter set who are now buying Uggs across the country will also want to sleep and wear Ugg as a luxury brand choice? Hmmm — it’s a bold move to be sure, one that could either boost the brand or kill it with very little wiggle area in between. We would expect to see Teva sales increasing this year too, on the back of the company’s solid effort to expand the once sandals-only line into functional fashion footwear as well as trail footwear.