The 10-second takeaway
For the quarter ended March 31 (Q1), Deckers Outdoor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share contracted significantly.
Gross margins increased, operating margins dropped, net margins dropped.
Deckers Outdoor reported revenue of $263.8 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $253.1 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $246.3 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 $0.03. The 16 earnings estimates compiled by S&P Capital IQ anticipated -$0.10 per share. GAAP EPS of $0.03 for Q1 were 85% lower than the prior-year quarter's $0.20 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 46.8%, 80 basis points better than the prior-year quarter. Operating margin was 1.0%, 380 basis points worse than the prior-year quarter. Net margin was 0.4%, 280 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $182.7 million. On the bottom line, the average EPS estimate is -$1.07.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $3.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 780 members out of 901 rating the stock outperform, and 121 members rating it underperform. Among 216 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Deckers Outdoor a green thumbs-up, and 26 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 $50.00.
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