By RTT News, October 24, 2013, 08:21:00 PM EDT
(RTTNews.com) - Shares of Deckers Outdoor Corp. ( DECK ) gained almost 14 percent in extended trades Thursday after the footwear and accessories maker reported results for the third quarter that beat analysts' expectations and also raised its earnings outlook for fiscal 2013.
The company's profit for the third quarter declined 23 percent from last year as higher sales and margins were more than offset by an increase in expenses. The company lowered its earnings outlook for the fourth quarter and maintained its revenue guidance for the fourth quarter and fiscal 2013.
The Goleta, California-based maker of Ugg boots reported third-quarter net income of $33.06 million or $0.95 per share, down from $43.06 million or $1.18 per share in the same period last year. On average, fifteen analysts polled by Thomson Reuters estimated earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter rose 3 percent to $386.73 million from $376.39 million in the year-ago period. Analysts had a consensus revenue estimate of $385.95 million for the quarter.
Results were mainly impacted by an increase in selling and other expenses to $120.40 million from $99.68 million in the year-ago period.
Gross margin for the quarter improved 90 basis points to 43.2 percent from last year's 42.3 percent.
UGG brand sales for the quarter increased 1.3 percent to $337 million, and Teva brand sales edged up 0.6 percent to $18 million, while Sanuk brand sales rose 0.5 percent to $18.4 million from last year.
Retail sales increased 34.5 percent to $52.6 million, while same store sales rose 1.9 percent. Meanwhile, eCommerce sales increased 12.2 percent to $14.9 million from a year ago.
Domestic sales decreased 1.4 percent to $238.8 million, while international sales grew 10.3 percent to $147.9 million from a year ago.
Looking ahead to the fourth quarter, Deckers Outdoor now expects earnings per share to increase about 32 percent over 2012 levels, compared to its previous projection of about 38 percent. Revenues are still expected to increase about 14.5 percent over 2012 levels.
Analysts expect the company to earn $3.88 per share for the quarter on revenues of $703.61 million.
For fiscal year 2013, the company now expects earnings per share to increase about 10 percent over 2012 levels, up from its previous projection of about 8 percent. Revenues are still estimated to grow about 8 percent over 2012 levels. Street expects the company to report earnings of $3.77 per share for the year on revenues of $1.52 billion.
DECK closed Thursday's regular trading session at $58.10, up $0.26 or 0.45 percent on a volume of 2.63 million shares. In after-hours, the stock further gained $7.90 or 13.60 percent to $66.00.
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