Deckers Outdoor Corporation saw its net earnings fall by 22.9 percent in the fourth quarter of 2012 to $98.1 million, from $127.2 million a year ago. Sales increased by 2.2 percent to $617.3 million compared with the same quarter last year. The company registered double-digit growth in the quarter for its new Sanuk brand as well as for its wholesale business in the U.K., where better-than-expected sell-through resulted in a meaningful level of reorders during the quarter. The company's gross margin in the quarter was 46.3 percent, down from 51.0 percent in the same period last year.
Sales of the Sanuk brand in the quarter were up by 39.2 percent to $15.3 million, primarily driven by higher domestic wholesale and internet sales. Sanuk brand net sales were $94.0 million for the full fiscal year. Its net sales had been $26.6 million for the last six months of 2011, after its acquisition by Deckers on July 1, 2011.
In contrast, sales fell for the Teva brand by 29.5 percent to $13.7 million in the fourth quarter, primarily due to a decrease in international distributor sales. For the full year, Teva brand sales decreased by 7.4 percent to $115.5 million.
The more fashionable Ugg brand recorded 2.9 percent higher sales $584.8 million in the fourth quarter compared with the same period last year. The increase was driven by new retail store openings and an increase in global e-commerce sales, partially offset by lower domestic and international wholesale revenues and a decline in same-storesales. For the full year ended Dec. 31, the Ugg brand's net sales decreased by 1.5 percent to $1.184 billion compared with last year.
The company's overall retail sales increased by 37.1 percent to $135.5 million in the quarter, compared with the fourth quarter a year earlier. Same-store sales decreased by 3.4 percent for the 13 weeks ended Dec. 30, 2012, when compared with the 13 weeks ended on Jan. 1, 2012.
E-commerce revenues jumped by 30.6 percent to $87.6 million in the quarter. Domestic sales in the quarter decreased by 2.1 percent to $446.7 million, while international sales increased by 15.6 percent to $170.5 million in the quarter.
For the full fiscal year, the company's net sales increased by 2.7 percent to $1.414 billion. The gross margin was 44.7 percent, down from 49.3 percent the prior year. Retail sales for the full year rose by 30.1 percent to $246.0 million. Samestore sales decreased by 3.4 percent for the 52 weeks ended Dec. 30, 2012 compared with the 52 weeks ended Jan. 1, 2012.
For fiscal 2013, the company expects full-year revenues to increase by around 7 percent over 2012 levels. Its guidance calls for a gross profit margin of around 46.5 percent and an operating margin of around 12.5 percent. The company expects Ugg brand revenues to increase by around 4 percent, while those of the Sanuk brand should go up by around 15 percent.