Stephen Murray, a seasoned American executive who has headed up Vans in Europe in the past, will become Deckers Outdoor Corporation’s new president for Europe, the Middle East and Africa as of June 1, taking care of the subsidiary and distributor businesses in the region for all the brands of the group - UGG, Teva, Tsubo and Simple.
The post had been vacant for several months. Murray comes from Urban Outfitters, where he was global president since April 2010. Before that he was president of VF Corporation’s Action Sports Coalition in charge of Vans and Reef, He spent five years before that as president of Vans, before it was bought by VF Corp.
Deckers continues to perform exceptionally well. It has just reported a strong 31.4 percent increase in revenues for the first quarter to $204.9 million, thanks mainly to a 42.2 percent rise to $148.4 million for its UGG brand, but Teva performed well, too.
The group’s domestic sales increased by 26.6 percent to $148.1 million while international turnover expanded 45.8 percent to $56.7 million. Retail sales increased by 52.8 percent to $35.4 million driven by the opening of nine shops and a 2.6 percent rise in same store sales. E-commerce sales were up by 27.3 percent to $23.5 million. The group’s gross margin stood at 50.0 percent in the quarter, roughly in line with the previous year.
Teva increased sales by 16.8 percent to $50.4 million in the first quarter thanks to increased demand in the U.S. for its expanded spring line of open- and closed-toe footwear. Revenues were also lifted by the conversion of its British business to a direct wholesale operation from a distributor-based activity.
Inventory for Teva increased by $12.0 million year-on-year to $30.7 million at March 31, stemming from growth in spring orders, the warehousing of stock to support the conversion of the international activities from a distributor model to a wholesale business, and increased retail stores. Group inventories surged by 55.6 percent to $107.1 million.
Following the higher-than-expected first-quarter results, Deckers raised its full-year guidance. It now forecasts a 21 percent rise in sales compared with a previous estimate of a 20 percent increase.
It anticipates a full-year gross margin of about 51 percent and sees diluted earnings per share increasing by 13 percent over 2010, compared with previous guidance of a 10 percent growth.
In the second quarter, revenues are estimated to rise by 4 percent year-on-year and the bottom line to register a diluted loss per share of approximately $0.25, compared with diluted earnings per share of $0.23 a year earlier (more in Shoe Intelligence).