Outdoor financials: Teva boosts strong Deckers 4Q earnings; Wintersports sales down at Head; Vail Resorts buying Kirkwood

Deckers reported fourth-quarter revenue up 40 percent thanks to a 45 percent increase in Teva sales. Plus, Head NV sees wintersports sales slip and Vail Resorts adds another resort to its Lake Tahoe list.
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Deckers Outdoor Corp. (Nasdaq:DECK) reported a jump in quarterly revenue and profit led by strong results from its Teva brand, plus gains from its Sanuk acquistion.

The Goleta, Calif.-based footwear company reported its fourth-quarter 2011 revenue up 40 percent to a record $603.9 million, while its net income jumped 39 percent to $127.2 million, or $3.18 per diluted share, compared to a year ago.

Deckers’ Teva brand sales led the quarterly growth, leaping 46 percent to a record $19.4 million in sales. Company officials said the positive results were driven by an increase in global shipments of closed-toe footwear and the conversion to a wholesale business model in the United Kingdom.

For the full year 2011, Teva sales increased 23.1 percent to a record $124.8 million, versus 2010. Companywide, Deckers’ revenues rose 38 percent to $1.38 billion for the full year 2011. On the retail front, the company saw its e-commerce sales rise 16 percent and its same-store sales rise 6.3 percent and 50.4 percent in total.

Deckers’ July 2011 acquisition of Sanuk added $11 million in the fourth-quarter and $26.6 million for the year in revenue.

Looking ahead to 2012, Deckers’ officials projected full-year revenue to increase 15 percent.

“Our projected top-line expansion, which includes a higher contribution from retail sales and the Sanuk brand, along with selective price increases compared with 2011, is helping offset our second consecutive year of significant cost headwinds mainly related to increases in sheepskin prices," Deckers officials said in the company’s earnings release Feb. 23. “We continue to pursue all available opportunities to further mitigate the impact of cost pressures and based on our initial visibility, we expect to experience relief beginning in 2013.”



Head NV sees wintersports decline to close out year


Weaker wintersports sales to close 2011 led to a fourth-quarter revenue and profit drop for Head NV (OTC:HEDYY).

The Nederlands-based manufacturer of skis, snowboards, boots and bindings, along with other sports equipment, saw its latest quarterly revenue drop 3.4 percent to EUR 121 million ($161.1 million), dragged by a 7.4 percent decline in its wintersports equipment sales, which came in at EUR 82.8 million ($110.2 million), compared to a year ago.

For the full year 2011, Head’s wintersports sales fell 3 percent to EUR 164.6 million ($219 million). Wintersports accounts for nearly half of Head’s business, which saw total revenue for the year fall 1.3 percent to EUR 339.1 million ($451.4 million).

Head’s fourth-quarter net income fell to EUR 338,000 ($450,000), down from profit of EUR 7.3 million ($9.7 million) a year ago.

Looking forward, Head officials warned that continued weaker wintersports sales are likely due to the warm weather and slow start to the 2011/12 winter season.

Vail Resorts to buy Kirkwood in Lake Tahoe region for $18 million

Vail Resorts (NYSE:MTN) continued to beef up its presence in the Lake Tahoe region, announcing its intentions to purchase Kirkwood Mountain Resort for $18 million.

The deal, expected to close by the end of March, would be Vail’s third ski property in the region, in addition to Heavenly and Northstar, the latter of which Vail purchased last year.

With the recent purchase of Kirkwood, Vail officials hinted the company would invest to develop the ski area’s undeveloped sites at the center of the base area which are zoned for residential and commercial development.

Located about 35 miles southwest of South Lake Tahoe, Kirkwood offers 2,000 feet of vertical drop and more than 2,300 acres of terrain.

--Compiled by David Clucas

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