You Can Only Hope to Contain Deckers: Fool by Numbers

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On Oct. 26, Deckers Outdoor (Nasdaq: DECK) released third-quarter earnings for the period ended Sept. 30, 2006.

• Revenues and earnings per share beat analyst estimates.
• Strong UGG sales drove revenue growth. Simple also had a strong showing, more than doubling sales to $4.4 million.
• EPS increased 31.7% to $0.83.
• Gross margin improved 315 bps to 45.2%.
• The company had no long-term debt at the end of the quarter.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$73,800	$82,322	$69,193	19.0%
Net Profit	--	$10,599	$8,150	30.0%
EPS	$0.54	$0.83	$0.63	31.7%
Diluted Shares	--	12,831	12,856	(0.2%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	45.16%	42.01%	3.15
Operating Margin	21.02%	20.26%	0.76
Net Margin	12.88%	11.78%	1.10

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$45,251	$19,081	137.2%
Accounts Rec.	$49,937	$44,121	13.2%
Inventory	$51,530	$66,768	(22.8%)

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$10,304	$15,542	(33.7%)
Long-Term Debt	$0	$13,200	(100.0%)

Learn the ways of the balance sheet.

Cash Flow Highlights
Data not provided. (Boo!)

Find out why Fools always follow the money.

Related Companies:

• Nike (NYSE: NKE)
• Coach (NYSE: COH)
• Timberland (NYSE: TBL)
• Wolverine World Wide (NYSE: WWW)

Related Foolishness:

• No Discount on Deckers
• Deckers' Boot Still Fits

Deckers is aMotley Fool Hidden Gemsselection. It has returned more than 86% since its recommendation. Click here to learn more about uncovering small-cap gems.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.