The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Deckers Outdoor missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Deckers Outdoor chalked up revenue of $376.4 million. The 14 analysts polled by S&P Capital IQ anticipated sales of $413.5 million on the same basis. GAAP reported sales were 9.2% lower than the prior-year quarter's $414.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.18. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.06 per share. GAAP EPS of $1.18 for Q3 were 26% lower than the prior-year quarter's $1.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.3%, 670 basis points worse than the prior-year quarter. Operating margin was 15.8%, 610 basis points worse than the prior-year quarter. Net margin was 11.4%, 370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $680.3 million. On the bottom line, the average EPS estimate is $3.42.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $4.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 778 members out of 905 rating the stock outperform, and 127 members rating it underperform. Among 207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give Deckers Outdoor a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deckers Outdoor is outperform, with an average price target of $58.08.
With hundreds of companies like Deckers Outdoor competing for shoppers' limited dollars, strong brands matter. Household names can provide growth for even boring, mature companies -- as long as you choose the right ones. Learn about a few who have what it takes in "3 American Companies Set to Dominate the World." Click here for instant access to this free report.
- Add Deckers Outdoor to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.