Source: Company reports

4Q16 RESULTS

For fiscal 4Q16, Deckers Brands reported adjusted EPS of $0.11 versus the consensus estimate of $0.05. Total revenue was $378.6 million versus consensus of $362.1 million. Ugg sales were up 13.3%, to $245.6 million, versus consensus of $220.5 million; Teva sales were up 11.3%, to $59.1 million, versus consensus of $56.1 million; and Sanuk sales were down 1.9%, to $38.5 million, versus consensus of $40.3 million.

2017 OUTLOOK

Management provided 1Q17 EPS guidance of $(2.10)–$(2.20) versus consensus of $(1.46). Total revenue is expected to decline by 20%–25% versus analysts’ expectation of a decline of 1.7%. The expected decline is primarily due to the timing of order shipments between quarters. Full-year guidance calls for EPS of $4.05–$4.40 versus consensus of $4.58. Total revenue is expected to be flat–(3)% versus consensus of up by 4%. Deckers also announced that Dave Powers will succeed Angel Martinez as CEO, effective May 31. Martinez will be retiring, although he will continue to serve as Chairman of the company’s board of directors. Powers joined Deckers in June 2012 as President of Direct-to-Consumer before being promoted to President of Omni-Channel. He was promoted to President of Deckers Brands in March 2015. Prior to joining the company, he held various roles with Nike, Timberland and Gap.