UGG Parent Deckers Net Loss Of $23 Million 700 Thousand In The Fourth Quarter

Deckers Outdoor Corp. (NASDAQ:DECK) released its four quarter and annual earnings report on Thursday, ending in the four quarter of March 31, 2016. The company's net loss was 23 million 706 thousand US dollars, plus earnings per share -0.73 US dollars, while the net profit for the 2015 fiscal year was 1 million 406 thousand US dollars, and the earnings per share were 0.04 US dollars.

However, Deckers Outdoor Corp. said that after adjustment, according to Non-GAAP, the fourth quarter EPS actually had 0.11 dollars, far exceeding the expected US $0.06.

The Non-GAAP calculation method is not included in the $24 million 700 thousand loss caused by customs reorganization and the impairment cost of $8 million 900 thousand.

In the fourth quarter of fiscal year 2016, Deckers Outdoor Corp. recorded an increase of 11.2% to 378 million 600 thousand US dollars, a slight increase of 12.4% according to fixed exchange rate, which is also higher than that of Zacks's expected US $363 million 400 thousand.

During the period,

Recorded 40.9%, plunged 380 basis points, if calculated according to Non-GAAP, there will still be 240 base points down to 42.3%, and the pressure on gross margins is mainly due to the impact of closing stores and unfavorable exchange rates.

In the first quarter, the group suffered a loss of $27 million 878 thousand, compared with a profit of $737 thousand in the same period last year.

Angel Martinez, chairman and chief executive officer of Deckers Outdoor Corp., said that considering the current retail environment, it is encouraging for the group to achieve the expected fourth quarter performance.

However, Deckers Outdoor Corp.'s expectations for the current fiscal year were not satisfied with the market, and its share price fell 2.5% on Thursday.

Deckers Outdoor Corp. Corp. expects revenue growth in the 2017 fiscal year to be -3%-0; the gross profit margin is expected to be 47%-47.5% in fiscal year 2017; EPS is expected to be 4.05-4.40 dollars in fiscal 2017, which is lower than the expected US $4.47 by Zacks.

In addition, Deckers Outdoor Corp. is currently far worse than Zacks's expected loss of $1.50 per share in the first quarter of 2017, compared with the expected loss of $2017 per share in the first quarter of the year, and the company expects to have a sharp decline in 20%-25% in the first quarter of fiscal year 2017.

Thanks to the strong dollar, which led to a sharp slowdown in tourist consumption and accompanied by a decline in passenger traffic, the US retail industry rarely featured outstanding companies in the first quarter of 2016.

Fourth quarter, Deckers Outdoor Corp. group's main brand UGG revenue recorded 13.3% cents to 245 million 600 thousand dollars, fixed exchange rate increased by 15.2%, but the brand income increased by only 2.1% to 1 billion 524 million dollars a year, fixed exchange rate increased 5%; Teva's brand income also had double digit 11.3% increase to 59 million 100 thousand dollars, annual growth rate 5% to 133 million dollars; however, group's flag.

Fourth quarter and full year income fell by 1.9% and 7.4% to 38 million 500 thousand and 1.062, respectively.

According to the channel, the wholesale and direct business income of Deckers Outdoor Corp. rose by 13.4% and 7.7% to 232 million 700 thousand US dollars and 145 million 900 thousand US dollars respectively in the fourth quarter, and the income of two major channels increased 2.6% and 4.4% to 1 billion 231 million dollars and 644 million 300 thousand US dollars respectively.

The direct sales channel recorded a 2.6% increase in the same quarter sales in the fourth quarter of the peak season, while SSS fell 1% in the whole year.

In the 2016 fiscal year, Deckers Outdoor Corp. revenue rose 3.2% to 1 billion 875 million 200 thousand US dollars, net profit 122 million 300 thousand US dollars, and earnings per share of US $3.70, down 24.4% compared to the same period last year. The adjusted earnings per share of US $4.50 is also weaker than that of last year.

The gross profit margin of the group in fiscal year 2016 has shrunk by 310 basis points to 45.2%, and has risen 20 basis points after adjustment.

Deckers Outdoor Corp. (NASDAQ:DECK) closed at $49.25 on Thursday, with an increase of 4% this year and a 32% drop in December.