Deckers Disappoints, Plans Brand Reset and More Cost Reductions
Warm weather in Oct. And Nov. spooked the market place for its Ugg brand as Deckers reported a 74% reduction in net income to $41,027,000 from $156,921,000 with sales falling 5% to $760,345,000 from $795,902,000 for the third quarter ended Dec. 31. This year’s results included a $118.0 million impairment charge on the Sanuk brand, another $9.0 million in restructuring charges for its retail operation and other restructuring charges of $1.9 million. DECK had guided to sales of flat to -2% and EPS of $4.16-4.28 against an actual performance of $1.27.
The results were marred especially by weak wholesale orders in ... Log in to view full article.