Deckers Outdoor’s three brands performed strongly in the 3rd quarter ended Sept. 30, with net income rising to $5.8 million against $481,000. Gross margins rose by 160 basic points to 39.8 percent, driven by a higher proportion of internet sales.
Total revenues rose by 124 percent to $55.8 million. The Teva brand raised its sales by 32 percent to $11.9 million, Simple soared by 165 percent to $4.6 million and UGG jumped by 178 percent to $39.2 million, but it would have done even better if it had not been for late shipments of some pastel-colored boot styles.
Following the positive results, the company has raised its forecasts, predicting full-year revenues of $196-201 million, up from the earlier estimation of $182-190 million. Teva’s annual sales are forecast at $89-90 million, Simple’s at $10-11 million and UGG’s at $97-100 million, as compared to $36.9 million in 2003. Deckers’ initial outlook for 2005 calls for revenues of $220-230 million, including $100-115 million for UGG, $87-100 million for Teva and $13-15 million for Simple.