Outdoor financials: Deckers' Q4, FY '08 sales up more than 50 percent, plus Sport Chalet, Outdoor Channel, Big 5, Winmark, LaCrosse

Deckers' Q4 and FY '08 sales rose more than 50 percent, Sport Chalet amended a loan agreement, Q4 revenue was up for the Outdoor Channel, Big 5's Q4 profit was down 42 percent, Winmark authorized a 500,000-share repurchase, and a LaCrosse subsidiary got a $6.7 million order from the military.
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Deckers' Q4, FY '08 sales up more than 50 percent

Deckers Outdoor Corp. (Nasdaq: DECK) posted a higher-than-expected fourth-quarter profit, helped by higher sales of its Ugg brand, which were up 62 percent for the quarter and a record 67.5 percent for the full year.

Fourth-quarter net sales increased 56.3 percent to $303.5 million versus $194.2 million in the same period last year.

Diluted earnings per share of $3.07 on a GAAP basis, or $4.05 excluding a pre-tax non-cash write down of $20.9 million. The company said the non-GAAP diluted earnings per share of $4.05 represents an increase of 50.6 percent over diluted earnings per share of $2.69 a year ago.

Domestic sales increased 59.5 percent to $283.4 million compared to $177.7 million last year. International sales increased 21.3 percent to $20.1 million versus $16.5 million a year ago.

For the full year, net sales were up 53.6 percent to $689.4 million versus $448.9 million last year.

Diluted earnings per share of $5.60 on a GAAP basis, or $7.27 excluding the pre-tax non-cash write down of $14.9 million incurred in the second quarter of fiscal 2008 and the $20.9 million incurred in the fourth quarter of fiscal 2008. The non-GAAP diluted earnings per share of $7.27 represents an increase of 43.7 percent over diluted EPS of $5.06 a year ago.

2008's domestic sales increased 50.4 percent to $581.5 million, compared to $386.6 million last year. International sales were up 73.1 percent to $107.9 million versus $62.3 million a year ago.

Fourth-quarter net sales for Ugg skyrocketed 62.0 percent to $288.0 million, compared to $177.7 million for the same period last year. For the full year, Ugg sales increased 67.5 percent to a record $582.0 million versus $347.6 million in 2007.

Deckers said the Ugg sales gain was driven by increased orders for fall and holiday product from domestic retailers, international distributors, and higher sell-through rates at company-owned retail locations and on its eCommerce website versus a year ago.

Teva's fourth-quarter net sales dropped 11.1 percent to $12.4 million, compared to $13.9 million for the same period last year hurt primarily by "a lower level of pull-forwards on spring product" compared with last year. For the full year, Teva sales were down 1.6 percent to $86.5 million compared to $87.9 million in 2007.

Simple's net sales for the fourth quarter were $2.3 million, compared to $2.6 million for the same period last year, a decrease of 12.3 percent, primarily due to lower reorders from retailers. For the full year, Simple brand sales increased 27.4 percent to $17.2 million versus $13.5 million in the prior year.

Net sales for Tsubo were $0.9 million for the fourth quarter and $3.8 million for the full year. It was acquired by Deckers in the second quarter of 2008.

Sales for the e-commerce business, which are included in the brand sales numbers, increased 51.2 percent to $36.1 million for the fourth quarter, compared to $23.9 million for the same period a year ago. For the full year, it was up 51.2 percent to a record $68.8 million versus $45.5 million in 2007.

Also included in the brand numbers are retail store sales, which increased 103.1 percent to $24.7 million for the fourth quarter compared to $12.1 million for the same period a year ago. For the year, they were up 109.2 percent to $38.5 million versus $18.4 million a year ago. For those stores that were open during the full year of 2007 and 2008, same-store sales grew by 32.7 percent.

Looking forward, Deckers modified its full-year revenue growth target up 6 percent to 9 percent over 2008. Its full-year diluted earnings per share target is slightly down from the $7.27 non-GAAP diluted EPS in 2008.

The company said it expects first-quarter 2009 revenue to increase approximately 22 percent over 2008, and expects first-quarter 2009 diluted earnings per share to be approximately 28 percent down from 2008.

Sport Chalet amends loan agreement

Sport Chalet (Nasdaq: SPCHA and SPCHB) changed its loan agreement to waive some covenants as it battles a difficult retail environment. In February, the company reported a fiscal third-quarter loss and said sales fell 10 percent.

Under terms of the amendment, Bank of America waived the company's existing event of default and some potential defaults. The amount the company can borrow against its borrowing base under its credit facility has been lowered and the interest rate has increased. The seasonal revolver limits under the credit facility remain unchanged.

"The amended agreement is…more accommodating to our operations in this difficult environment and it will allow us to refocus our attention on improving our top line results, working with our vendors to procure and market compelling merchandise, and launching our sportchalet.com website," said Craig Levra, chairman and CEO, in a statement.

Also in February, the company announced a strategic review process that was looking into raising additional capital or changing its credit facility, among other alternatives.

"We are also continuing to work closely with FTI Consulting who has played a key role in identifying opportunities to improve our operations by focusing on cost controls while maintaining the high levels of 'expert' service that our customers demand," Levra added.

Q4 revenue up for Outdoor Channel

Outdoor Channel Holdings' (Nasdaq: OUTD) total revenues increased 22.5 percent for the fourth quarter, boosted by a rise in ad revenue and subscriber fees.

Total revenues were $14.4 million compared with $11.7 million in the corresponding period a year ago. Its net income of $0.5 million, or $0.02 per diluted share, for the 2008 fourth quarter, compared with a net loss of $1.6 million, or loss of $0.06 per diluted share, last year.

Advertising revenue rose 21.0 percent to $10.0 million from $8.2 million in the prior-year period. Subscriber fees totaled $4.4 million, an increase of 26.3 percent compared to subscriber fees of $3.5 million in the prior-year period.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $3.9 million for the 2008 fourth quarter, compared with $1.5 million in the prior-year period.

For FY '08, total revenues from continuing operations equaled $54.1 million, compared with $46.9 million in the prior year. Net income was $2.4 million, or $0.09 per share, versus a net loss of $1.9 million, or a loss of $0.07 per share, for the prior year.

The year's advertising sales rose 25.4 percent to $36.6 million from $29.1 million in 2007. Subscriber fees totaled $17.5 million, which was down $0.3 million compared to subscriber fees for the prior year. EBITDA equaled $10.9 million versus $9.5 million for the prior year.

The company's board of directors also authorized a stock buyback program to repurchase up to an aggregate of $10.0 million of its issued and outstanding common shares. The stock repurchase plan will be effective Mar. 3-Dec. 31, 2009.

Q4 profit for Big 5 down 42 percent

Big 5 Sporting Goods (Nasdaq: BGFV) said its fourth-quarter profit dropped 42 percent, and same-store sales dropped 8.6 percent during the quarter as customer traffic fell amid a slowdown in consumer spending.

For the quarter ended Dec. 28, earnings fell to $3.6 million, or $0.17 per share, from $6.2 million, or $0.28 per share, a year ago. Net sales fell 5 percent to $219.6 million, from $232.1 million in the fourth quarter of 2007.

Selling and administrative expenses declined 4 percent to $64.3 million in the quarter. The company said it reduced its employee headcount by 9 percent last year through attrition.

For the full fiscal year, Big 5's earnings dropped 51 percent to $13.9 million, or $0.64 per share, from $28.1 million, or $1.25 per share, in the prior year. Results for the most recent quarter included a one-time pretax charge of $0.04 per share to correct an error in rent expense.

Full-year net sales fell 4 percent to $864.7 million, from $898.3 million in fiscal 2007. Same-store sales dropped 7 percent.

Also, Big 5 cut its quarterly cash dividend to $0.05 per share for an annual rate of $0.20 per share. The company said it would use the capital to strengthen its balance sheet during the economic downturn.

Looking forward, the company said it would report earnings of $0.01 to $0.07 per share for the first quarter. It expects same-store sales to decline in the high-single digit percentage range.

Big 5 declined to offer guidance for the full year amid the recession.

Winmark authorizes 500,000 share repurchase

The board of directors of Winmark Corp. (Nasdaq: WINA), parent of Play It Again Sports, has authorized the repurchase of 500,000 shares in addition to the 30,000 shares remaining under an existing board authorization. The new authorization is equal to approximately 9 percent of Winmark's current shares outstanding.



LaCrosse subsidiary gets $6.7 million order from military


Danner, a subsidiary of LaCrosse Footwear (Nasdaq: BOOT), has received a new $6.7 million delivery order from the U.S. Army for the Combat Hiker boot. The company said it anticipates delivering the boot order April through August.

LaCrosse did not say how this would affect earnings for its upcoming first quarter.

--Compiled by Wendy Geister

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