Jump in Deckers' Q4 earnings trounce analyst forecasts
Deckers Outdoor (Nasdaq: DECK), parent of Teva, Ugg and Simple, said its fourth-quarter profit rose 95 percent -- significantly beating analyst expectations -- as sales rose and margins widened.
Quarterly earnings increased to $23.5 million, or $1.82 per share, from $12.1 million, or $0.94 per share during the same period in 2005. Revenue grew 37 percent to $124.4 million from $91 million. Analysts had forecast profit of $1.31 per share on revenue of $110.7 million.
Deckers Outdoor said it would take a charge of $14 million to $15 million related to Teva brand trademarks when it files its final quarterly report with regulators sometime before March 16.
It added that gross margins in the period expanded to 48.5 percent from 40.6 percent a year earlier.
For the full year, the company's earnings rose 34 percent to $42.5 million, or $3.30 per share, from $31.8 million, or $2.48 per share in 2005. Revenue advanced 15 percent to $304.4 million from $264.8 million.
Fourth-quarter net sales for Teva increased 15.5 percent to $13.0 million compared to $11.3 million for the same period last year. For the full year, Teva product sales decreased 5.6 percent to $80.5 million compared to $85.2 million in the prior year.
Ugg's net sales for the fourth quarter increased 40.1 percent to $109.9 million versus $78.5 million for the same period a year ago. The company said consumer demand for the entire women's, men's, and kids' fall collection, including boots, slippers, casuals, fashion and surf contributed to the Ugg's better-than-expected performance. For the full year, the brand's sales increased 23.2 percent to a record $211.5 million versus $171.6 million in 2005.
Net sales for Simple increased 18.8 percent to $1.5 million for the fourth quarter compared to $1.2 million for the same period last year. For 2006, the Simple's sales increased 58.01 percent to $12.5 million compared to $7.9 million a year ago.
Deckers said it expects first quarter 2007 revenue to increase approximately 15 percent and diluted earnings per share to increase approximately 15 percent over 2006.
West Marine's Q4 loss narrows
West Marine's (Nasdaq: WMAR) fourth-quarter loss narrowed -- despite lower revenue -- due to cost control efforts.
The company reported a loss of $12.3 million, or $0.57 per share, versus a loss of $21.2 million, or $1 per share, in the prior year.
Excluding a charge of $9.4 million, or $0.29 per share, for store closings and other restructuring costs, West Marine had a quarterly loss of $6 million, or $0.28 per share. The adjusted loss for the prior-year period was $12.5 million, or $0.59 per share, which excludes $14.3 million, or $0.41 per share, in unusual charges.
Quarterly revenue dropped 1 percent to $123.8 million from $124.8 million. Selling, general and administrative charges declined 32 percent to $36.7 million from $53.6 million.
The company's full-year 2006 loss widened to $7.1 million, or 33 cents per share, from a loss of $2.3 million, or 11 cents per share in the year-ago period. Revenue for the year increased 4 percent to $716.6 million versus $692.3 million in 2005.
West Marine reported that it anticipates a fiscal full-year 2007 profit, with same-store sales climbing and growth seen in its port supply wholesale and direct sales business segments.
The company sees full-year earnings between $0.45 to $0.55 per share with revenue in a range of $706 million to $716 million. It also predicts a 1 percent to 2 percent increase in same-store sales.
Exel Inc. shows dramatic losses
Finland-based Exel Inc. has shown a loss in 2006 of EUR 10.1 million (USD $13.3 million) in the company's sport division. European trade news publications said the huge loss has raised some question about the company's continued engagement in the sport segment.
The losses were in part created by dramatic drops in German-speaking countries, as well as a lack of successful investments in new markets, the German trade magazine sport+mode wrote, plus one-time costs of changing warehouses to China. In comparison, the company had a profit in 2005 of EUR 12.4 million, which sunk for 2006 to EUR 400,000 (USD $527,012). Sales in the sport division dropped 18.3 percent, from EUR 34.5 million to EUR 28.2 million (USD $37.1 million). Exel has reacted by engaging in significant layoffs, for example in Germany 11 employees were given layoff notices. The company is looking for structural alternatives or additional strategic partners, per a report from Exel.
Exel is a technology company that also manufactures plastics, laminates and other composite technology. Its other division is industrial.
To read the 2006 financial report, click here.
(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 Feb. 27.)
Q4 net income falls for Prana parent
Liz Claiborne (NYSE: LIZ), parent of Prana, said net income fell 7 percent, hurt by charges related to a restructuring initiative.
Quarterly earnings totaled $73.2 million, or $0.71 per share, versus $78.3 million, or $0.74 per share, during the same period last year. Excluding 23 cents in costs related to a restructuring program, earnings were $0.94 per share, at the low end of company guidance. The company said it is working on streamlining its operations and redeploying resources to grow profit. Revenue grew 11 percent to $1.33 billion from $1.2 billion a year ago.
For the year, profit fell 20 percent to $254.7 million, or $2.46 per share, from $317.4 million, or $2.94 per share, in 2005. Adjusted to exclude costs related to restructuring, yearly earnings were $2.99 per share. Revenue grew 3 percent to $4.99 billion from $4.85 billion in 2005.
VF stock bouncing back, acquires Majestic Athletic
VF Corp.'s (NYSE: VFC) stock has gradually regained most of the value it lost a month ago when it announced it was selling off its intimate brands unit.
Parent of The North Face, JanSport and Eagle Creek, VF's stock had been trading as high as $82 per share in January, until it announced that it would sell its intimate apparel group to Fruit of the Loom for $350 million. Following that announcement, the company's stock lost value, sliding as low as $74, which was its closing price on Jan. 29.
Analysts noted that the stock appears to be stabilizing and closed above $80 per share on three separate days -- Feb. 22 ($80.48), Feb. 23 ($80.46) and Feb. 26 ($80.28).
In other company news, VF acquired Majestic Athletic Inc., which provides sports apparel and team uniforms to National Football League, National Hockey League and Major League Baseball. Financial terms were not disclosed.
The company expects the acquisition of Majestic and the company's January purchase of Eagle Creek to add about $180 million to revenue in 2007.
Jarden's tender offer expires
Jarden Corp. (NYSE: JAH) said its cash tender offer for 9-3/4 percent senior subordinated notes due 2012 expired at the end of February. The aggregate amount of notes tendered and accepted for payment was $170 million, representing approximately 94.4 percent of the aggregate principal amount of the notes, it said. Jarden is the parent company of Coleman and Campingaz.
Outdoor Channel Holdings to continue Nasdaq listing
The Nasdaq Listing Qualifications Panel has found Outdoor Channel Holdings (Nasdaq: OUTD) in compliance with the "marketplace rules" and will continue the listing of Outdoor Channel Holdings' shares on the Nasdaq Global Market. The ruling came after the company filed its Form 10-Q for the quarter ended Sept. 30, 2006.
Amer Sports 2006 annual report published
Amer Sports' 2006 annual report has been published in English and Finnish. A printed version of the annual report can be ordered by e-mail from firstname.lastname@example.org or by telephone +358 9 7257 8308. It can also be downloaded as a pdf file from the company's website, www.amersports.com. Amer Sports is the parent company of Salomon, Atomic and Suunto.
Cabela's to offer secondary offering
Cabela's (NYSE: CAB) said it is filing a preliminary prospectus supplement with the Securities and Exchange Commission for an underwritten public offering of 4,119,016 shares of its common stock. All of the shares of common stock are being offered by stockholders affiliated with J.P. Morgan Partners (which is advised by CCMP Capital Advisors) and Fulcrum Growth Partners. The selling stockholders also have granted to the underwriter an option to purchase up to an additional 617,852 shares to cover over-allotments, if any. The public offering price has not yet been determined. The company said it will not receive any proceeds from this sale of its common shares.
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