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Goleta, Calif., — Deckers Outdoor Corporation (NASDAQGS: DECK) today announced that it has acquired 100% of the ownership interest of TSUBO, LLC. The purchase price is approximately $6 million in cash plus a potential future earn-out, subject to customary working capital adjustments. The Company stated it does not expect the acquisition to affect its previously announced diluted earnings per share outlook for the remainder of the year.
Founded in 1998 and headquartered in Carlsbad, California, TSUBO is a high-end casual footwear company with products for men, women and children. The brand is the synthesis of ergonomics and style, with a full line of sport and dress casuals, boots, sandals and heels constructed to provide consumers with contemporary footwear that incorporates style, function and maximum comfort. The company utilizes a proprietary bubble outsole design as well as eco-friendly materials in the design and manufacturing process in order to achieve their distinct look and feel. TSUBO products are sold throughout the United States primarily at better department stores, as well as in more than a dozen countries worldwide. For the year ended December 31, 2007, TSUBO reported sales of approximately $10 million.
Angel Martinez, President and Chief Executive Officer of Deckers, commented, “We are pleased to announce this acquisition and believe that TSUBO represents an ideal complement to our existing portfolio of lifestyle brands. TSUBO’s target consumer, product selection, industry niche and relative under-penetration in the marketplace make it an extremely good fit for us. In addition, TSUBO’s commitment to quality distribution and its unique Performance Comfort platform allow us to develop a compelling brand story for the global marketplace. We are confident that we can leverage our design, marketing and distribution capabilities to grow TSUBO into a meaningful business over the next few years, consistent with our mission to build niche brands into global market leaders.”
The acquisition was funded with existing cash balances.
Deckers Outdoor Corporation strives to be a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. Teva(R), Simple(R) and UGG(R) are registered trademarks of Deckers Outdoor Corporation.
All statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are inherently uncertain and are based on the Company’s expectations as of today, May 6, 2008. In addition, such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those expressed or implied by such forward-looking statements. Many of the risks, uncertainties and other factors are discussed in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Among these risks and uncertainties are the challenge of managing the Company’s brands for growth, the Company’s ability to anticipate fashion trends, product mix, the success of new products, conditions in the general economy and in the retail environment, the effect of consumer preferences, the Company’s dependence on international distributors to sell our products in international markets, the exposure of foreign currency and other risks related to conducting business outside the U.S., the risk that the Company’s international sales are subject to a variety of laws and political and economic risks that may adversely impact the Company’s sales and results of operations in certain regions, the risk that international trade regulations may impose unexpected duty costs or other non-tariff barriers to markets while the increasing number of free trade agreements has the potential to stimulate increased competition, increased security procedures may cause significant delays and other factors discussed in the Company’s filings made with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any of the forward-looking statements in this news release.