Outdoor financials: Analyst says Deckers has healthy backlog, reiterates 'buy' rating, plus Jarden, Amer Sports
An analyst said Deckers has a healthy backlog and reiterated his 'buy' rating, Jarden confirmed its 2009 revenue guidance, and Amer Sports updated a share repurchase program.
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Analyst says Deckers has healthy backlog, reiterates ‘buy’ rating
While some analysts have been down on Deckers Outdoor’s inventory levels, a Lazard Capital Markets analyst told clients that the company’s backlog is healthy and shows there is “life” in the company. Deckers is parent of Ugg, Teva and Simple.
In it annual report, Deckers reported its order backlog from wholesale customers and distributors as of Dec. 31, 2008, totaled about $240 million, up 41 percent from a year ago, when it was $170 million.
Lazard Capital Markets analyst Todd Slater wrote in a client note that Deckers’ backlog of orders is healthy. “(Deckers’ annual report) release shows strong evidence of life,” he wrote.
Based on the company’s expectation of 6 percent to 8 percent revenue growth in 2009 and Slater’s assumption that about 85 percent of revenue is wholesale, “this implies the company already has approximately 40 percent of its annual wholesale revenues in the bag,” Slater wrote. “Few other companies have anywhere near this level of visibility, in our experience.”
With the company’s stock trading at less than half the price it was a year ago, Slater said the company “offers one of the most compelling risk/reward propositions in the footwear and apparel universe.” He reiterated his “buy” rating on the stock and $85 price target.
Jarden confirms 2009 revenue guidance
During a meeting with analysts and investors at the New York Stock Exchange, Jarden Corp. (NYSE: JAH) reaffirmed its 2009 revenue guidance, saying it still expects revenue of $5 billion and free cash flow in excess of $250 million.
“We believe that our relatively strong performance in the current recessionary environment should translate into meaningful organic growth as the economy recovers. We will also maintain our disciplined approach to our capital structure, which continues to provide us with sufficient liquidity to fund new product development, and operating capital needs,” said Martin Franklin, Jarden’s chairman and CEO, in a statement released from the event.
Jarden’s portfolio includes various outdoor brands, such as K2, Marmot, ExOfficio and Coleman.
Amer Sports updates share repurchase program
Amer Sports Corp. said it has decided to cancel its proposal regarding the authorization to repurchase the company’s own shares. It also changed its proposal regarding the authorization of the board of directors to decide on issuance of shares.
It also transferred 340,900 of its own shares to its fully owned subsidiary, Amer Sports International Oy, to be used for the group’s key personnel’s share-based incentive plan. The transfer date of the shares was March 3. As a result of the transfer, Amer Sports Corp. does not hold any own shares.
Amer Sports is parent of Salomon, Arc’Teryx, Bonfire, Atomic and Suunto.
–Compiled by Wendy Geister
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