Deckers expects to exceed 4Q guidance
Word out of Goleta, Calif., is that Deckers Outdoor Corp. (NasdaqNM: DECK) now expects fourth-quarter sales and earnings to exceed the high-end of prior guidance. It previously forecasted that quarterly income would range between 47 cents and 51 cents per share on sales of $55 million to $60 million. Analysts are looking for the company to report quarterly earnings of 51 cents per share on sales of $61.9 million. Deckers said the news is based on continued strong demand for its UGG footwear line, improved deliveries from its factories and solid retail sell-through.
adidas-Salomon takes restrictions off U.S. trade
Starting Jan. 5, adidas-Salomon (ADSG.DE) opened trade in its shares in the United States to more investors, upgrading its American Depositary Receipts (ADRs) to an unrestricted level. Represented by the symbol ADDYY, each ADR represents one-half of one bearer share of adidas-Salomon's common stock.
Adidas has had an ADR program since 1995 to attract U.S. investors, but trade had been restricted to "qualified institutional buyers."
"We've seen very strong interest in adidas-Salomon from investors in the U.S. market," said adidas-Salomon CFO Robin Stalker. "A significant percentage of our shares are already held by U.S. investors. And we believe there is considerably more potential for our shares in this important market. We are setting up this program to provide the opportunity for more U.S. investors to participate in the group's future performance."
The Bank of New York will act as depositary bank for these ADRs, which have been assigned the CUSIP number 00687A107. adidas-Salomon said they will be initially priced at $80.
West Marine same-store sales plunge for December
West Marine posted a 5.3-percent decline in December same-store sales, and said its full-year earnings would come in at the low end of estimates. Net sales for the month were $45.7 million, a decrease of 14 percent from $53.1 million a year earlier. In the latest quarter, ended Jan. 1, 2005, same-store sales dropped 3.3 percent as net sales sank 6 percent to $117.5 million from $124.3 million a year ago. For the year, same-store sales added 0.3 percent, with sales rising 3 percent to $682.4 million. West Marine said its December sales were weaker than expected, but noted that its gross margin improved during the period. The company pegged its 2004 profit at the lower half of an estimated range of $1.25 to $1.28 per shares, and reiterated its 2005 forecast for earnings of $1.49 to $1.53 per share.
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