Outdoor financials: Deckers’ Q4 profit surges 67 percent, plus Crocs, Luxottica, Liberty/Backcountry.com

Deckers’ saw its fourth-quarter profit surge 67 percent, Crocs narrowed its Q4 loss thanks to increased sales, Luxottica’s Q4 profit dropped 8.4 percent, and Backcountry.com's parent reported that Q4 revenue was up.
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Deckers’ Q4 profit surges 67 percent

Deckers Outdoor (Nasdaq: DECK), parent of Teva, Uggs and Simple, said its fourth-quarter profit jumped 67 percent boosted by double-digit percentage increases in sales.

For the quarter, Deckers earned $67.7 million, or $5.22 per share, up from $40.5 million, or $3.07 per share, a year earlier. Revenue rose 15 percent to $348 million.

For the quarter, Ugg brand sales increased 15.7 percent to a record $333.3 million compared to $288.0 million for the same period last year, Teva sales decreased 14.8 percent to $10.5 million versus $12.4 million, and Simple’s sales for the quarter increased 17.9 percent to $2.7 million compared to $2.3 million.

For FY ‘09, Deckers' profit rose 58 percent to $116.8 million, or $8.89 per share. Revenue rose 18 percent to $813.2 million.

Also, for the full year, Ugg sales increased 22.3 percent to a record $711.8 million versus $582.0 million in 2008; Teva sales were down 10.2 percent to $77.7 million compared to $86.5 million, and Simple sales decreased 17.7 percent to $14.1 million versus $17.2 million.

Deckers said it expects 2010 profit to be 5 percent higher than 2009's adjusted profit of $8.94 per share, implying earnings of $9.39 per share. In the first quarter, Deckers expects $0.87 per share, based on a projected 6 percent drop.

News of the profit jump and 2010 predictions sent Deckers’ stock to an 18-month high. It closed Feb. 26 at $120.20, up $14.04 from the previous day. The company's stock has not traded that high since August 2008.

Crocs narrows Q4 loss on increased sales

Crocs (Nasdaq: CROX) said its fourth-quarter loss shrunk as its revenue climbed. It also reported that its president and CEO is retiring.

For the quarter ended Dec. 31, the company lost $11.4 million, or $0.13 per share, versus a loss of $34.7 million, or $0.42 per share, during the same period in 2008. Excluding certain items, the company lost $3.5 million, or $0.04 per share.

Revenue rose 7.9 percent to $136 million, up from $126.1 million during the same period the prior year.

For the full year Crocs reported a loss of $42.1 million, or $0.49 per share, compared to its previous year loss of $185.1 million, or $2.24 per share. Full-year revenue fell 10.5 percent to $645.8 million, down from $721.6 million.

Also, Crocs said president and CEO John Duerden was retiring from the company on March 1, after a year on the job. John McCarvel, the company's chief operating officer and executive vice president, is replacing him and has been with the company for six years.

Looking ahead, Crocs expects its first-quarter per-share profit to break even, anticipating revenue between $155 million and $160 million.

Luxottica’s Q4 profit down 8.4 percent

Luxottica (NYSE: LUX), parent of Oakley, reported an 8.4 percent drop in net profit for the fourth quarter, softened by higher sales. The Oakley brand boosted sales by more than 10 percent last year to more than $1.1 billion, almost all of it in the United States.

For the quarter, net income was EUR 35.6 million (USD $48.5 million), compared with EUR 38.8 million (USD $52.8 million) in the same period of 2008.

Consolidated sales fell 6.4 percent to EUR 1.157 billion (USD $1.576 billion) in the fourth quarter from EUR 1.237 billion (USD $1.685 billion) in the same period of 2008, with 80 percent of the drop reflecting changes in foreign-exchange values.

Luxottica's improved bottom line came largely thanks to currency effects and a sharp decline in debt-servicing costs.

Full year net profit was EUR 315 million (USD $429 million), down 17 percent from a year-earlier EUR 380 million (USD $517 million). Sales were EUR 5.09 billion (USD $6.93 billion) – down 2.1 percent form last year’s EUR 5.20 billion (USD $7.08 million).

Earnings before interest, taxes, depreciation and amortization declined 20 percent to EUR 148 million (USD $201 million) from EUR 187 million (USD $254 million).

Sales trends in early 2010 have been "extremely positive," said CEO Andrea Guerra in a statement. As a result, the board boosted the dividend by 59 percent this year to EUR 0.35 a share (USD $0.47). The proposed dividend will cost half of last year's net profit, a payout ratio that Guerra called "a step toward returning to 'normalcy' at Luxottica."

Luxottica also anticipates mid-single-digit sales growth this year with a more than proportionate increase in profit margins and a further reduction in the debt-to-EBITDA ratio.

Meanwhile, the company said it plans to expand significantly in Asia and Latin America and introduce specially designed Ray-Ban collections for emerging economies, as well as look for small-and-medium sized investments to expand the Sunglass Hut chain in those regions.



(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 Mar. 1.)

Backcountry.com parent says Q4 revenue up

Liberty Interactive (Nasdaq: LCAPA and LINTA), a subsidiary of Liberty Media Corp. and parent of Backcountry.com, reported a 14-percent jump in its fourth-quarter revenue.

Revenue was $2.7 billion for the fourth quarter and up 3 percent to $8.3 billion for the year. Adjusted OIBDA increased 29 percent to $556 million in the fourth quarter and 6 percent to $1.7 billion for the year, while operating income increased 76 percent and 15 percent, respectively.

The company said the increase in revenue and adjusted OIBDA for the fourth quarter and the year was primarily due to favorable results at QVC and its e-commerce companies.



--Compiled by Wendy Geister

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