Deckers' Q2 revenue surge overshadowed by loss
Deckers Outdoor (Nasdaq: DECK) said it swung to a second-quarter loss due in part to a trademarks write-down, while revenue jumped 73 percent.
For the three-month period ended June 30, the company posted a loss of $3.8 million, or $0.29 per share, compared with a profit of $2.3 million, or $0.17 per share, in the year-ago period.
Excluding a $14.9 million non-cash write-down of Teva trademarks, Deckers reported earnings of $0.39 per share.
Revenue surged to $91.1 million from $52.7 million.
Selling, general and administrative expenses increased 51 percent to $28.4 million from $18.8 million between the periods.
"The very challenging retail environment for the Teva brand contributed to our inability to support a portion of the value of the Teva trademarks on our balance sheet for accounting purposes," CEO Angel Martinez said in a statement. "However, given the circumstances and compared to our competition, we are still encouraged with the Teva brand's results."
Ugg brand net sales for the second quarter increased 130.6 percent to $60.6 million compared to $26.3 million for the same period last year.
Teva brand net sales increased 4.8 percent to $25.2 million for the second quarter compared to $24.1 million for the same period last year.
Simple brand net sales for the second quarter increased 94.0 percent to $4.7 million compared to $2.4 million for the same period last year.
Deckers raised its fiscal 2008 earnings guidance, saying it now expects adjusted earnings to jump 34 percent over 2007, up from a previous guidance for a 27-percent increase. The new outlook implies the company expects full-year earnings of $89 million, or $6.78 per share, up from 2007's $66.4 million, or $5.06 per share, profit.
Decker now expects revenue for the year to rise 43 percent, up from a previous guidance for a 31-percent jump. The new outlook implies the company sees revenue of about $641.9 million for the year, up from 2007's $448.9 million.
Additionally, Deckers now expects third-quarter earnings and revenue to increase 12 percent and 34 percent, respectively.
For the fourth quarter, the company expects earnings and revenue to jump 42 percent and 45 percent, respectively.
Crocs' Q2 profit plunges on slow domestic sales
Citing a sharp decline in domestic sales, Crocs (Nasdaq: CROX) said second-quarter profit plunged to $2.1 million, or $0.03 per share, compared to $48.5 million, or $0.58 per share, in last year's second quarter.
Crocs' profit was at the bottom of the range of $0.03 to $0.07 per share that the company had forecast on July 25, when it slashed its previous guidance for a second-quarter profit of $0.42 to $0.47 per share.
Revenue dipped to $222.8 million from $224.3 million in the latest quarter. While international sales rose 20 percent to $130 million in the latest quarter, domestic sales dropped 20 percent to $92.6 million.
Crocs said its expenses rose to $89.9 million, or 40 percent of revenues, up from $63.5 million, or 28 percent of revenues, in the year-ago period.
Crocs President and CEO Ross Snyder said his company has been hurt by the U.S. economic downturn and lower-than-expected demand in some markets.
"Over the near-term, we are focused on further reducing our expenses in order to exit this year with a leaner infrastructure while at the same time strategically increasing the retail presence and consumer awareness of our more recent product introductions," Snyder said in a statement.
Crocs backed its earlier profit and revenue guidance for the third quarter and full year.
Crocs expects third-quarter net income of a $0.01 to $0.05 per share, on revenue of $195 million to $205 million.
For the full year, Crocs still expects break-even earnings -- including a charge of $0.16 per share related to the shutdown of the company's Canadian operations -- with sales down "modestly" from last year's $847.4 million.
Separately, Crocs said it has laid off 75 people, or about 4 percent of its U.S. work force. The majority of the cuts were in Colorado. The layoffs leave the company with 1,774 workers in the United States and about 3,950 around the world.
Eddie Bauer narrows Q2 loss, same-store sales up
Eddie Bauer Holdings (Nasdaq: EBHI) posted a narrower loss and its same-store sales rose in the second quarter amid a turnaround plan.
The company reported losses for the quarter ended June 28 shrank to $70,000, or break even per share, from a loss of $22.2 million, or $0.73 per share last year.
Revenue rose 3 percent to $233 million from $227 million last year.
The company same-store sales increased 8.6 percent during the quarter.
The company said higher sales, a smaller net loss, lower inventory and expenses are tangible results the turnaround plan is working.
On Aug. 8, the stock rose $1.46 to a high of $6.65 during day's trading. It closed at $6.50. The shares have traded between $2.91 and $11.19 during the past 52 weeks.
Q2 sales rise for Backcountry.com parent
Liberty Media Corp. (Nasdaq: LCAPA and LINTA) said its second-quarter revenue rose in all three of its business units.
Revenue from Liberty Interactive Group, which includes Backcountry.com, rose 9 percent to $1.95 billion.
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