Better-than-expected year for Deckers
30/05/2017
These results exceeded its own forecasts, which had predicted a drop of 5% to 6%. This better-than-expected quarter led to full-year sales of $1.79 billion, a drop of 4.5% year-on-year, slightly better than forecasts expected.
During the fourth quarter, sales of Ugg brand products fell 1.1% to $243 million. This gave full-year sales of $1.45 billion, 4.8% lower than the previous year.
Deckers president and CEO Dave Powers said the company anticipates that a $150 million savings plan, which it announced in February 2017, will improve operating profit by $100 million by the 2020 fiscal year. He described the fourth quarter results as “a solid foundation” to execute this plan.
Deckers announced in April that its board will “review a broad range of strategic alternatives”, possibly including the sale of the company or of one of its brands. It cautioned, however, that “there can be no assurance that the strategic review process will result in a transaction”.
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