Deckers Outdoor 3Q profit up partly on UGG sales

GOLETA, Calif. (AP) — Deckers Outdoor Corp. said its third-quarter profit climbed 30 percent, bolstered by strong international sales and the popularity of its UGG boots.

The company, which also makes Teva and Simple shoes, raised its full-year earnings and revenue outlooks partly on UGG's strong performance. Its shares climbed to a new 52-week high Friday.

Late Thursday, Deckers said it earned $33.8 million, or $2.59 per share, up from $26 million, or $1.97 per share, during the same period a year ago.

Analysts surveyed by Thomson Reuters expected profit of $2.25 per share.

Sales for the three months ended Sept. 30 grew 16 percent to $228.4 million from $197.3 million, beating Wall Street's estimate of $227.9 million.

Deckers said international sales surged 41 percent to $49.4 million while domestic sales increased 10.3 percent.

President, Chairman and CEO Angel Martinez said in a statement that UGG boots continue to perform well, with several new styles giving a lift to the fall selling season. UGG sales grew 19 percent during the quarter.

Teva sales slid 19.5 percent, while sales of Deckers' Simple shoes fell 31.4 percent on fewer reorders and the discontinuation of Planet Walkers.

Inventory grew 18.9 percent to $187.8 million on higher UGG brand inventory. Deckers said most of UGG's business is pre-booked, so the higher inventory is needed to fulfill orders currently on its books. Part of the inventory increase was also due to more retail store openings, the company added.

Deckers said it now expects 2009 profit to climb about 9 percent from the prior year's adjusted earnings of $7.27 per share, which implies profit of $7.92 per share. The company previously forecast earnings would be flat to up slightly.

Deckers also lifted its annual revenue guidance. It anticipates sales will rise about 13 percent, up from a prior outlook for a 9 percent to 10 percent sales increase. The new outlook implies 2009 revenue of $779 million.

Analysts predict full-year profit of $7.36 per share on sales of $769.2 million.

For the fourth quarter, Deckers expects adjusted earnings to rise about 5 percent from a year ago, with sales up approximately 4 percent. The forecast implies fourth-quarter income of $4.25 per share on revenue of $315.5 million.

Analysts forecast fourth-quarter profit of $3.91 per share on revenue of $304.5 million.

Shares added $7.71, or 8.4 percent, to $99.45 in morning trading Friday. The stock earlier traded as high as $99.72, eclipsing a 52-week peak of $92.30 set Tuesday.