Deckers Brands net sales in the first quarter increased 4.5 percent to 221 million dollars on a constant currency basis compared to 211.5 million dollars for the same period last year. On a reported basis, net sales increased 1.1 percent. Gross margin was 40.5 percent compared to 41 percent for the same period last year. Diluted loss per share was 1.43 dollars compared to a diluted loss per share of 1.07 dollar for the same period last year.

"Our efforts to diversify our product lines, distribution channels and global revenue streams are creating a stronger foundation to support sustainable growth," commented Angel Martinez, Chief Executive Officer and Chair of the Board of Directors, adding, " Looking ahead, we believe our merchandise and marketing strategies have us well positioned for a successful fall/winter selling season, which combined with moderating expense growth and share repurchases, should generate increased value for our shareholders this year and beyond."

UGG brand net sales decreased 7.2 percent to 114.5 million dollars compared to 123.3 million dollars for the same period last year. On a constant currency basis, sales decreased approximately 3 percent. Teva brand net sales increased 6.8 percent to 41.9 million dollars compared to 39.3 million dollars for the same period last year. On a constant currency basis, sales increased approximately 12 percent. Sanuk brand net sales decreased 7 percent to 33.5 million dollars compared to 36 million dollars for the same period last year on both a reported and constant currency basis. Combined net sales of the company's other brands increased 85.6 percent to 23.9 million dollars compared to 12.9 million dollars for the same period last year. The increase was primarily attributable to a 9.8 million dollars increase in sales for the Hoka One One brand.

Wholesale and distributor sales for the first quarter decreased 0.4 percent to 153.4 million dollars compared to 154 million dollars for the same period last year. On a constant currency basis, sales increased approximately 2.2 percent. The decrease in sales was driven by a decrease in international wholesale and distributor sales, partially offset by an increase in domestic wholesale sales. Direct-to-Consumer sales increased 5.2 percent to 60.4 million dollars compared to 57.5 million dollars for the same period last year. On a constant currency basis, sales increased 10.5 percent. This increase was driven by 16 net new stores opened as well as three new country specific e-commerce sites launched within the last year. Direct-to-Consumer comparable sales were flat over the same period last year.

Domestic sales increased 1.7 percent to 134.5 million dollars compared to 132.3 million dollars for the same period last year. International sales increased 0.1 percent to 79.3 million dollars compared to 79.2 million dollars for the same period last year. On a constant currency basis, sales increased 9.1 percent to 86.5 million dollars. Gross margin was 40.5 percent in the first quarter compared to 41 percent for the same period last year. The decline in gross margin was driven by an approximately 200 basis point impact from foreign exchange headwinds.

The company expects fiscal 2016 constant currency revenues to be approximately 2.01 billion dollars, reflecting a 10.5 percent increase over the twelve month period ended March 31, 2015. On a reported basis, revenues are expected to be 1.96 billion dollars, or an increase of 8 percent. Gross profit margin is expected to be approximately 48 percent, down 30 basis points from fiscal 2015 as a result of expectations regarding a stronger U.S. dollar, partially offset by lower input costs and favorable changes in the company's channel mix. The company expects diluted earnings per share to be approximately 5.68 dollars on a constant currency basis, reflecting an increase of 22 percent. On a reported basis, earnings per share are expected to be 5.15 dollars, or an increase of 10.5 percent.

The company expects second quarter fiscal 2016 constant currency revenues to be up approximately 5 percent over the same period last year and up approximately 1 percent on a reported basis. Diluted earnings per share are expected to be approximately 1.05 dollar on a reported basis compared to diluted earnings per share of 1.17 dollars for the same period last year. On a constant currency basis, earnings per share are expected to be 1.41 dollars, which represents constant currency earnings growth of approximately 20 percent.

 

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