Deckers Outdoors Profit Surges, But Stock Tanks 12% On Weak Outlook

(RTTNews) - Footwear and apparel maker Deckers Outdoor Corp. (DECK), Thursday said its profit for the fourth quarter soared as revenues surged over 19 percent with contribution from all businesses, and driven by improved gross margins. Nevertheless, Deckers stock tanked over 12 percent in after-hours trade on some weak outlook.

Deckers Outdoor's fourth-quarter net income surged to $140.9 million from $98.1 million a year ago. On a per share basis, earnings jumped 45.8 percent to $4.04 from $2.77 for the same period last year. On average, eighteen analysts expected earnings of $3.80 per share for the quarter. Analysts' estimate typically excludes one-time items.

Deckers Outdoor's fourth quarter net sales increased 19.2 percent to $736.0 million from $617.3 million in the corresponding quarter last year. Eighteen analysts had a consensus revenue estimate of $711.76 million for the quarter. Gross margin for the quarter improved 480 basis points to 51.1 percent from 46.3 percent in the similar quarter last year.

Looking ahead, Deckers Outdoor currently expects first calendar quarter 2014 revenues to increase about 6 percent over first quarter 2013 levels. The company anticipates a first calendar quarter 2014 loss of about $0.16 per share compared to an earnings of $0.03 per share reported in the first quarter of 2013.

Sixteen analysts currently expect Deckers Outlook to report earnings of $0.10 per share for the quarter.

Deckers Outdoor said, "Based upon current visibility, the Company expects full calendar year revenues to increase approximately 10% over 2013 levels." Full calendar year earnings per share are projected to increase about 8 percent over 2013 levels, with a gross profit margin of near 49 percent and an operating margin of about 13 percent.

DECK closed Thursday's regular trade at $84.67, up $2.33 or2.83%, on a volume of 2.33 million shares on the Nasdaq. In after hours, the stock plunged, $10.47 or 12.37%, to trade at $74.20.