Outdoor financials: Analyst lowers estimates on Deckers, plus Quiksilver, West Marine, Forzani

An analyst lowered estimates on Deckers, Quiksilver was downgraded by the Moody's ratings agency, West Marine's Q4 same-store sales fell, and Forzani Group took a hit on holiday season sales.

Analyst lowers estimates on Deckers

Susquehanna analyst Christopher Svezia lowered his share price target and 2009 earnings estimates on Deckers Outdoor Corp. (Nasdaq: DECK), parent of Teva, Ugg and Simple, amidst the current weak retail environment. In a client note, he wrote that he expects fourth-quarter results will be strong, but he expects sales to slow in the second half of 2009 as management "becomes more cautious with distribution in order to maintain brand integrity."

"Over the next month, management will be working with key retailers regarding fall 2009 orders, and while we believe Ugg's retail partners will continue to gravitate toward the brand given its success, we believe pre-books could be more subdued relative to 2008," Svezia wrote.

But he said Deckers will likely be one of the few shoe makers to grow in 2009. He raised his fourth-quarter earnings-per-share estimate to $3.93 from $3.85 based on expected strong sales during the quarter, but lowered his 2009 estimate and cut his share price target to $92 from $134.

Quiksilver downgraded by Moody's ratings agency

Moody's has downgraded Quiksilver (NYSE: ZQK) on concerns that the company's weak fourth-quarter performance and reliance on short-term debt makes it vulnerable as consumers cut spending.

Moody's downgraded the company's $400 million in unsecured senior notes due 2013, taking their ratings down one notch to "Caa1" from "B3."

It also cut Quiksilver's corporate family and probability of default ratings to "B3" from "B2." The rating is an opinion on the company's ability to honor all its financial obligations and is assigned to a corporate family as if it had a single class of debt and a single consolidated entity structure.

One quarter of Quiksilver's debt is due in its current fiscal year. The rating agency's outlook on the company is negative. The company's speculative liquidity grade rating is SGL-4, the lowest possible rating.

West Marine's Q4 same-store sales fall

Hit by slower consumer spending, West Marine (Nasdaq: WMAR) said its fourth-quarter revenue fell 6.1 percent on declining same-store sales.

For the period ended Jan. 3, revenue slipped to $111.1 million from $118.3 million a year earlier. Same-store sales dropped 5.1 percent during the quarter.

Quarterly revenue for the stores segment slid 6 percent to $95.3 million, while port supply unit sales through distribution centers dipped 1.2 percent to $7.7 million. For the direct sales division, revenue was down 10.6 percent to $8.1 million.

Full-year revenue slipped 7.1 percent to $631.3 million on lower same-store sales and store closings. Same-store sales slipped 6.8 percent.

West Marine said its 2008 adjusted loss will be smaller than it previously expected thanks to lower-than-projected restructuring charges and operating costs.

It now forecasts a full-year loss between $0.44 and $0.50 per share, instead of its prior estimated loss of $0.55 to $0.65 per share. It added that the forecast excludes about $0.31 per share in restructuring charges, a deferred tax valuation and lower tax rate and costs related to an ongoing SEC investigation.

Forzani Group takes holiday season sales hit

Canada's Forzani Group (TSX: FGL) reported lower-than-expected sales for the holiday season, saying that was "satisfactory" in light of the challenging North American retail environment.

For the 10 weeks ended Jan. 11, total retail sales were flat compared to the prior year. On a same-store basis, total retail system sales were down 1.8 percent, although sales were stronger in the week before and the week after Christmas, it said. Corporate same-store sales decreased 4.3 percent, while franchise retail same-store sales were up 3.0 percent. The company added that this same-store sales performance was on top of increases of 7.4 percent and 18.5 percent respectively, in the prior year.

Corporate store margin rates improved 55 basis points versus the prior year as a result of more current inventory and less aggressive discounting, it said. Corporate store inventory levels were as planned, and below last year, on a same-store basis, it added.

The Forzani Group is Canada's largest national retailer of sporting goods, operating under the banners of Sport Chek, Coast Mountain Sports, Sport Mart and The Fitness Source.

--Compiled by Wendy Geister

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.


Outdoor financials: Deckers' shares fall on analyst downgrade, plus West Marine

Deckers' shares fall on analyst downgrade Shares of Deckers Outdoor (Nasdaq: DECK), parent of Teva, Ugg and Simple, fell after Credit Suisse analysts expressed concerns that the company's Ugg brand has limited growth potential, initiating coverage of the company with an ...read more

Outdoor financials: Deckers expects to beat lowered Q4 targets, plus Stride Rite, K2, Kellwood, Phoenix, Oakley, Big 5, Quiksilver, Forzani, Amer

Deckers expects to beat lowered Q4 targetsDeckers Outdoor Corp. (Nasdaq: DECK), the maker of Teva sandals and Ugg boots, projected sales and earnings in last year's fourth quarter would beat its own forecast, driven by the recent popularity of Ugg boots. Deckers said it would ...read more

Outdoor financials: Analyst forecasts strong year for Deckers, plus Quiksilver/Rossignol, LaCrosse, VF Corp.

Analyst forecasts strong year for Deckers An analyst raised his target on Deckers Outdoor's (Nasdaq: DECK) stock, saying the company looks set to post solid results in the second half of the year. It is the parent of Teva, Ugg and Simple. Piper Jaffray analyst Jeffrey ...read more

Outdoor financials: Jarden shares preliminary Q1 profit estimates, plus West Marine, Deckers, Timberland, Wolverine, Amer Sports

Jarden shares preliminary Q1 profit estimates Jarden (NYSE: JAH) released preliminary first-quarter results, and its adjusted profit for the quarter is expected to beat analysts' expectations. Jarden's outdoor brands portfolio includes Coleman, K2 and Marmot, among others. The ...read more

Outdoor financials: Quiksilver reports Q4 loss on goodwill impairments, charges, plus Outdoor Channel, GSI Commerce, Amer Sports, West Marine, Johnson Outdoors

Quiksilver reports Q4 loss on goodwill impairments, charges Quiksilver (NYSE: ZQK), parent of Rossignol, said it swung to a loss in the fourth quarter because of goodwill impairments and charges. For the quarter ended Oct. 31, the company reported a loss of $110.9 million, or ...read more

Outdoor financials: Johnson Outdoors' Q3 sales drop 18.6 percent, plus Cabela's, Quiksilver, West Marine

Johnson Outdoors' Q3 sales drop 18.6 percent Johnson Outdoors (Nasdaq: JOUT) reported higher earnings on lower net sales for its third quarter. Johnson Outdoors is parent of Old Town, Ocean Kayak, Necky, Carlisle and Extrasport, among others. Total net sales for the quarter ...read more

Outdoor financials: Kellwood swings to Q2 loss, lowers 2007 outlook, plus Quiksilver, Forzani, Crocs, Dick's

Kellwood swings to Q2 loss, lowers 2007 outlook Kellwood (NYSE: KWD) said it swung to a loss in its second quarter due to heavy charges and slightly lower sales in both the women's and men's sportswear divisions. The company owns a multitude of mainstream and outdoor brands ...read more

Outdoor financials: Forzani reports record Q4 earnings, plus West Marine, Exel, Sport Chalet

Forzani reports record Q4 earnings Forzani Group (TSX: FGL), Canada's largest sporting goods retailer, said fourth-quarter profit rose 36 percent, helped by an additional week of sales, lower taxes and a cold winter. Its retail banners include Sport Chek, Sports Experts and Coast ...read more

Outdoor financials: West Marine’s Q4 revenue up on adjustment, plus Gander, Jarden, Forzani

West Marine’s Q4 revenue up on adjustment West Marine (Nasdaq: WMAR) reported that its fourth-quarter revenue fell 6.2 percent compared with last year, but if the extra week from the 2008 quarter is removed, revenues actually rose 1.7 percent. “The second half of the year was ...read more