** charts before earnings **
** charts after earnings **
Deckers Outdoor misses by $0.12, misses on revs; guides Q4 EPS below consensus, revs below consensus :
- Reports Q3 (Dec) earnings of $4.11 per share, $0.12 worse than the Capital IQ Consensus of $4.23; revenues fell 4.5% year/year to $760.3 mln vs the $789.73 mln Capital IQ Consensus.
- UGG brand net sales for Q3 decreased (5.3)% to $704.0 million compared to $743.2 million for the same period last year. On a constant currency basis, sales decreased (4.4)%. The year over year decrease was driven by lower domestic wholesale sales, primarily due to a slower than expected start to the quarter, partially offset by stronger than expected DTC comparable sales.
- Gross margin was 50.5% compared to 49.1% for the same period last year.
- Co issues downside guidance for Q4, sees EPS of (0.10)-0.00 vs. $0.44 Capital IQ Consensus Estimate; sees Q4 revs declining 5-6%, equating to $354.8-$359.7 mln vs. $383.47 mln Capital IQ Consensus Estimate. The company expects restructuring charges for 4Q17 to be approximately $20 million.
- Co states: "While the slow start to the holiday season limited our reorder opportunities and led to a shortfall in third quarter sales and earnings, sell-through of the UGG brand accelerated sharply late in the quarter. Our December performance helped drive a positive 4.7% Direct-to-Consumer comparable sales increase and also ensured that our wholesale partners ended the calendar year with cleaner inventory levels compared with a year ago... With the accelerated change that we are seeing in the marketplace, we plan to further transform our operating structure in order to grow profitably and become more nimble. On top of approximately $60 million in previously announced SG&A and gross margin improvements, we have identified approximately $90 million of additional savings that we plan to implement over the course of the next two fiscal years, which we anticipate will ultimately more than offset future investments aimed at growing the business."