-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TwFgQImAd0X746Pg1Y6Fj5VKa3PTXQosNBp6n5vobq3JtfKwoVIiVOXKJ6+tvHQu 4UuUctc/b8Lsik6qjttnHA== 0001157523-07-004143.txt : 20070426 0001157523-07-004143.hdr.sgml : 20070426 20070426160528 ACCESSION NUMBER: 0001157523-07-004143 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070426 DATE AS OF CHANGE: 20070426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DECKERS OUTDOOR CORP CENTRAL INDEX KEY: 0000910521 STANDARD INDUSTRIAL CLASSIFICATION: RUBBER & PLASTICS FOOTWEAR [3021] IRS NUMBER: 953015862 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22446 FILM NUMBER: 07791402 BUSINESS ADDRESS: STREET 1: 495A SOUTH FAIRVIEW AVENUE CITY: GOLETA STATE: CA ZIP: 93117 BUSINESS PHONE: 8059677611 MAIL ADDRESS: STREET 1: 495-A S FAIRVIEW AVE CITY: GOLETA STATE: CA ZIP: 93117 FORMER COMPANY: FORMER CONFORMED NAME: DECKERS FOOTWEAR CORP DATE OF NAME CHANGE: 19930811 8-K 1 a5387921.txt DECKERS OUTDOOR CORPORATION 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 26, 2007 DECKERS OUTDOOR CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-22446 95-3015862 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 495A South Fairview Avenue, Goleta, California 93117 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (805) 967-7611 ------------------------------ - -------------------------------------------------------------------------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On April 26, 2007, Deckers Outdoor Corporation issued a press release announcing its financial results for the three months ended March 31, 2007 and held a conference call regarding its financial results for the first quarter of 2007 ended March 31, 2007. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press release, dated April 26, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Deckers Outdoor Corporation Date: April 26, 2007 /s/ Zohar Ziv ------------- Zohar Ziv, Chief Financial Officer EX-99.1 2 a5387921ex991.txt EXHIBIT 99.1 Exhibit 99.1 Deckers Outdoor Corporation Reports First Quarter Financial Results Company Reports First Quarter Sales Increased 29.6% to a Record of $72.6 Million First Quarter Diluted EPS Increased 70.5% to a Record of $0.75 Company Increases Fiscal 2007 Guidance Growth Targets GOLETA, Calif.--(BUSINESS WIRE)--April 26, 2007--Deckers Outdoor Corporation (NASDAQ: DECK) today announced financial results for the first quarter ended March 31, 2007. First Quarter Highlights -- Net sales increased 29.6% to $72.6 million versus $56.0 million last year. -- Gross margin increased 210 basis points to 46.2% compared to 44.1% a year ago. -- Diluted EPS increased 70.5% to $0.75 versus $0.44 last year. Angel Martinez, President and Chief Executive Officer, stated, "We begin 2007 with a solid first quarter highlighted by double digit sales increases for Teva(R), UGG(R) and Simple(R). Our ability to once again exceed expectations was primarily driven by strong full price selling for the UGG(R) brand coupled with positive consumer reaction to our reengineered Teva(R) product line, which underscores our ongoing efforts to revitalize the brand at retail and our strategic decision to target a younger, more active demographic. At the same time, Simple(R) continued to gain important shelf space at retail while further building its leadership position in sustainable footwear. Looking ahead, we believe we are well positioned to capitalize on our future growth opportunities and we remain confident in our ability to achieve both our near- and long-term objectives." Segment Summary Teva(R) Teva Brand net sales for the first quarter increased 11.6% to $38.7 million compared to $34.7 million for the same period last year. Sales were driven by demand for new styles, particularly the performance water series featuring higher price point products such as the Karnali Wraptor, Toachi and Sunkosi, along with solid sell-through of men's and women's casuals including updated versions of the Dozer. UGG(R) UGG Brand net sales for the first quarter increased 67.7% to $29.8 million compared to $17.8 million for the same period a year ago. The improvement in sales was attributable to greater demand and increased distribution for the expanded spring line which now consists of espadrilles, sandals, flip flops and boots. Simple(R) Simple Brand net sales increased 14.0% to $4.0 million for the first quarter compared to $3.5 million for the same period last year. Simple product sales were up year-over-year as a result of heightened brand awareness, a broader product assortment, and the addition of several new influential accounts, including Urban Outfitters, Bloomingdales, David Z. and Kitson. Consumer Direct Sales for the Consumer Direct business, which are included in the brand sales numbers above, increased 69.7% to $11.1 million compared to $6.5 million for the same period a year ago, mostly due to an increase in UGG Brand internet sales. In addition, results for the first quarter of 2007 included sales from the Company's new UGG Brand flagship store in New York City and two new retail outlet stores in Wrentham, MA and Riverhead, NY, which were not in operation in the first quarter of 2006. Full-Year 2007 Outlook -- The Company increased its full year revenue growth target to approximately 25% over 2006, up from previous guidance of approximately 15%. -- The Company increased its full year diluted earnings per share growth target to approximately 15% over 2006 before the impairment charge, up from previous guidance of approximately 5% -- Fiscal 2007 guidance includes approximately $5.2 million of stock compensation expense, an increase of $3.1 million over 2006. Second Quarter Outlook -- The Company currently expects second quarter 2007 revenue to increase approximately 15% and diluted earnings per share to decrease approximately 80% compared to 2006. The Company's conference call to review first quarter fiscal 2007 results will be broadcast live over the internet today, Thursday, April 26, 2007 at 4:30 pm Eastern Time. The broadcast will be hosted at www.deckers.com and www.earnings.com. Deckers Outdoor Corporation builds niche products into global lifestyle brands by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. Teva(R), Simple(R) and UGG(R) are registered trademarks of Deckers Outdoor Corporation. This news release contains statements regarding our expectations, beliefs and views about our future financial performance which are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or future or conditional verbs such as "will," "would," "should," "could," or "may" or by the fact that such statements relate to future, and not just historical, events or circumstances, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for the Company's markets and the demand for its products. The forward-looking statements in this news release regarding our future financial performance are based on currently available information as of the date of this release, and because our business is subject to a number of risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties include, among others: our ability to anticipate fashion trends, consumer demand or inventory needs; whether the UGG brand will continue to grow at the same rate it has experienced in the recent past; shortages or price fluctuations of raw materials that could interrupt product manufacturing and increase product costs; our ability to implement our growth strategy; the success of our customers and the risk of losing one or more of our key customers; our ability to develop and protect our brands and intellectual property; the risk that counterfeiting can harm our sales or our brand image; our dependence on independent manufacturers to supply our products; the risk that retailers could postpone or cancel existing orders; unpredictable events and circumstances and currency risks related to our international operations; the risk of losing key personnel; and the sensitivity of our sales to seasonal and weather conditions. Certain of these risks and uncertainties, as well as others, are more fully described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 which we filed with the Securities and Exchange Commission on March 16, 2007. Readers are cautioned not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date of this release. The Company undertakes no obligation to publicly release or update the results of any revisions to forward-looking statements, which may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks and uncertainties highlighted herein should not be assumed to be the only items that could affect the future performance of the Company. DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) March 31, December 31, Assets 2007 2006 ------------ ------------ Current assets: Cash and cash equivalents $ 25,553 34,255 Short-term investments 84,234 64,637 Trade accounts receivable, net 36,400 49,571 Inventories 34,157 32,375 Prepaid expenses and other current assets 2,447 2,199 Deferred tax assets 4,386 4,386 ------------ ------------ Total current assets 187,177 187,423 Restricted cash 1,000 ---- Property and equipment, at cost, net 8,224 7,770 Intangible assets, less applicable amortization 54,322 54,399 Deferred tax assets 327 327 Other assets 53 54 ------------ ------------ $ 251,103 249,973 ============ ============ Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $ 15,279 21,053 Accrued expenses 5,064 7,204 Income taxes payable 5,492 7,478 ------------ ------------ Total current liabilities 25,835 35,735 ------------ ------------ Stockholders' equity: Common stock 126 126 Additional paid-in capital 82,967 81,761 Retained earnings 141,656 131,958 Accumulated other comprehensive income 519 393 ------------ ------------ Total stockholders' equity 225,268 214,238 ------------ ------------ $ 251,103 249,973 ============ ============ DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) (Amounts in thousands, except for per share data) Three-month period ended March 31, ------------------------ 2007 2006 ------------ ----------- Net sales $ 72,575 56,004 Cost of sales 39,054 31,304 ------------ ----------- Gross profit 33,521 24,700 Selling, general and administrative expenses 18,345 15,786 ------------ ----------- Income from operations 15,176 8,914 Other (income) expense Interest, net (989) (580) Other 1 - - - ------------ ----------- Income before income taxes 16,164 9,494 Income taxes 6,466 3,845 ------------ ----------- Net income $ 9,698 5,649 ============ =========== Net income per share: Basic $ 0.77 0.45 Diluted 0.75 0.44 ============ =========== Weighted-average shares: Basic 12,595 12,468 Diluted 12,932 12,763 ============ =========== CONTACT: Deckers Outdoor Corporation Zohar Ziv, 805-967-7611 Chief Financial Officer and Executive Vice President of Finance and Administration or Investor Relations: Integrated Corporate Relations, Inc. Chad A. Jacobs/Brendon Frey 203-682-8200 -----END PRIVACY-ENHANCED MESSAGE-----