Deckers Outdoor Corporation had a 15.8 percent increase in net sales to $228.4 million for the third quarter ended Sept. 30. Sales in the U.S. grew by 10.3 percent to $179.0 million, while sales outside the domestic market jumped by 41.4 percent to $49.4 million. The gross profit margin for the quarter fell by 0.4 percentage points to 42.9 percent. Net income grew by 30 percent to $33.8 million. Income from operations rose by 23.2 percent to $53.1 million.
Teva’s net sales fell by 19.5 percent to $9.0 million for the quarter, with the drop primarily because the brand lacked a product with a lower price-point. It has since tweaked and expanded its offering of technical closed-toe products. Deckers said that it hopes its new technical line of closed-toe light hikers would establish Teva as a year-round brand.
During the third quarter, the company repurchased approximately 300,000 shares of its common stock under its stock repurchase program, for a total of approximately $20.0 million.
Deckers has raised its revenue outlook for the full year. The company now expects sales to increase by approximately 13 percent over 2008, compared with previous guidance of 9-10 percent. It is forecasting a gross margin of about 44.3 percent, down slightly from guidance of 44.5 percent. Deckers says fourth-quarter 2009 revenues will increase by about 4 percent, and the gross margin will be 47.0 percent, versus an earlier forecast of 47.5 percent (more in Shoe Intelligence).