Deckers Decked Out in Green: Fool by Numbers

On Feb. 27, Deckers Outdoor (Nasdaq: DECK) released preliminary fourth-quarter earnings for the period ended Dec. 31.

• The company's sales were driven by a 40% increase in the UGG segment's sales during the quarter.
• All three of the company's brands experienced double-digit sales growth.
• Deckers expects the Q1 2007 revenues and earnings per share to come in 15% higher than the Q1 2006 numbers.
• Deckers is currently rated a two-star stock in the Motley Fool CAPS service, while competitors such as Crocs (Nasdaq: CROX) and Timberland (NYSE: TBL) are rated one star and two stars, respectively. To see why investors are bearish on this group, join the CAPS service for free today.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$124.4	$91.0	36.7%
Net Profit	$23.5	$12.1	94.6%
EPS	$1.82	$0.94	93.6%
Diluted Shares	12.9	12.9	0.2%

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	48.5%	40.6%	7.9
Operating Margin	29.7%	21.1%	8.7
Net Margin	18.9%	13.3%	5.6

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$98.9	$53.2	85.7%
Accounts Rec.	$49.6	$39.7	24.9%
Inventory	$32.4	$33.4	(3.0%)

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$21.1	$14.5	45.1%

Learn the ways of the balance sheet.

Cash Flow Highlights

Deckers didn't stack this deck with its cash flows. Maybe next time.

Find out why Fools always follow the money.

Related Foolishness:

• Skechers Sketches Out a Nice Quarter
• Luxury Sheepskin Is All the Rage
• Shiver Me Timberland

Deckers is a former Motley Fool Hidden Gems selection. To see why the newsletter decided to sell, take a free 30-day trial to the service today.

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 check Fool.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.