Deckers’ Q3 earnings boosted by Ugg, Teva sales
Double-digit percentage increases in Ugg and Teva sales boosted Deckers Outdoor (Nasdaq: DECK) net sales nearly 22 percent for the third quarter.
For the quarter ended Sept. 30, Deckers' sales rose to $277.9 million from $228.4 million.
Its net profit of $42.1 million, or $1.07 per share, was up from $33.8 million, or $0.86 per share, a year earlier.
UGG’s net sales increased 20.2 percent to $255.8 million, up from $212.8 million for the same period last year.
Net sales for Teva jumped 51.7 percent to $13.7 million, compared to $9.0 million last year.
Combined net sales of the company’s other brands, including Simple and Ahnu, increased 26.5 percent to $8.4 million for the third quarter, compared to $6.6 million for the same period last year.
Looking ahead, Deckers raised its full-year outlook, saying it now expects its full-year revenue to increase approximately 16 percent over 2009 levels, compared to previous guidance of approximately 14 percent.
It also anticipates full-year diluted earnings per share to increase approximately 22 percent over the non-GAAP diluted EPS of $2.98 in 2009, compared to previous guidance of approximately 16 percent.
Footwear, apparel sales enhance Amer Sports’ Q3 earnings
Amer Sports, parent of Salomon, Arc’Teryx and Suunto, posted a 14-percent increase in company sales for the third quarter, saying its footwear and apparel sales increased 10 percent.
For the July to September time period, net sales increased by 14 percent to EUR 466.9 million (USD $647.7 million), compared to EUR 410.6 million (USD $569.6 million) last year. In local currencies, net sales increased by 5 percent.
EBIT was EUR 55.8 million (USD $77.4 million) versus EUR 40.7 million (USD $56.4 million), including non-recurring expenses of EUR 3.5 million. Earnings per share totaled EUR 0.38 (USD $0.52) up from last year’s EUR 0.29 (USD $0.40).
Net cash flow from operating activities is a loss of EUR 85.0 million (USD $117.9 million) versus a loss of EUR 25.4 million (USD $35.2 million), reflecting primarily the seasonality in Winter Sports Equipment.
"In the third quarter, we continued to drive top line growth and profitability. We improved gross profit percentage by three points and kept operating expenses under control. The progress was broad based: all business segments improved their EBIT margins,” said Heikki Takala, president and CEO of Amer Sports, in a statement.
For the quarter, the winter and outdoor segment’s net sales totaled EUR 300.3 million (USD $414.2 million), up 14 percent from last year’s EUR 262.4 (USD $361.9 million). In local currencies, the increase was 7 percent.
The breakdown of net sales by business area was: winter sports equipment, 44 percent; apparel and footwear, 39 percent; cycling, 9 percent; and sports instruments, 8 percent. EMEA accounted for 63 percent of net sales, the Americas for 28 percent, and Asia Pacific for 9 percent.
Amer Sports said the segment’s EBIT improved to EUR 58.2 million (USD $80.2 million), compared to EUR 44.1 million (USD $60.8 million) last year. Higher gross margins contributed EUR 10.4 million (USD $14.3 million) to EBIT growth, and increased sales volumes contributed EUR 9.1 million (USD $12.5 million). Operating expenses increased by EUR 9.4 million (USD $12.9 million), mainly driven by increased sales and distribution expenses (all in local currencies).
Winter sports equipment net sales were EUR 133.1 million (USD $183.5 million), compared to EUR 119.6 (USD $164.9 million). Apparel and footwear net sales were EUR 117.3 million (USD $161.8 million) from last year’s EUR 99.3 million (USD $136.9 million). Sports Instruments net sales totaled EUR 24.7 million (USD $34.0 million) versus EUR 22.0 million (USD $30.3 million).
Looking ahead, Amer Sports said it expects its outlook for 2010 net sales to be approximately EUR 1.7 billion (USD $2.3 billion), up from EUR 1.5 billion (USD $2.0 billion) in 2009, and EBIT margin to be approximately 6 percent excluding non-recurring items.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Oct. 28.)
Jarden’s Q3 sales up 18.5 percent
Jarden Corp. (NYSE: JAH) reported increases in both sales and profits for the third quarter, aided by strong results in its outdoor and consumer segments. The company’s outdoor portfolio includes Coleman, Marmot and K2, among others.
For the three months ended Sept. 30, net sales increased 18.5 percent, with organic net sales growth of 7.3 percent, to $1.6 billion, compared to $1.4 billion for the same period in the previous year.
Net income was $80.6 million, or $0.90 per diluted share, compared to net income of $73.7 million, or $0.83 per diluted share, for the same period in 2009.
On a non-GAAP basis, adjusted net income was $86.1 million, or $0.96 per diluted share, compared to $82.2 million, or $0.93 per diluted share, last year.
West Marine posts Q3 sales increase, profit drop
West Marine (Nasdaq: WMAR) said its up-tick in third-quarter revenue was driven by gains in sales to wholesale customers at its store locations.
Net revenues for the period ended Oct. 2 were $172.5 million, an increase of 2.6 percent, compared to $168.2 million for the corresponding period last year.
Comparable store sales increased by 3.7 percent from last year.
Net income was $7.4 million, or $0.32 per share, compared to $8.5 million, or $0.38 per share, last year.
Gross profit was $49.6 million, an increase of $2.1 million, compared to the same period of fiscal 2009. As a percentage of net revenues, gross profit increased by 0.5 percent to 28.7 percent, compared to gross profit of 28.2 percent last year.
Selling, general and administrative was $41.8 million, an 8.3-percent increase, compared to $38.6 million for the same period last year. SG&A expense as a percentage of revenues increased by 1.3 percent to 24.2 percent.
Q3 net sales for Duofold parent up by nearly half
Hanesbrands (NYSE: HBI), parent of Duofold, said its third-quarter net income rose 49 percent, helped by back-to-school sales and lower restructuring costs.
Net income increased to $61.3 million, or $0.63 per share, from $41.1 million, or $0.43 per share, last year.
Revenue rose 11 percent to $1.17 billion, up from $1.06 billion last year.
Hanesbrands said if the current high prices for commodities such as cotton persist, it might raise prices in the middle of 2011.
Looking ahead, the company narrowed its net income guidance for the year to $2.27 to $2.32 per share. Previous guidance was $2.25 to $2.35 per share. It expects revenue of $4.3 billion for the year.
The company said revenue could grow by a percentage in the high single digits to double digits, depending on prices, sales volume and other factors. Hanesbrands said it expects earnings growth between 10 percent and 20 percent in 2011, consistent with its long-term goal.
--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.