The 10-second takeaway
For the quarter ended June 30 (Q2), Deckers Outdoor missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. GAAP loss per share grew.
Margins dropped across the board.
Deckers Outdoor notched revenue of $170.1 million. The 16 analysts polled by S&P Capital IQ expected revenue of $178.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.85. The 17 earnings estimates compiled by S&P Capital IQ anticipated -$1.05 per share. GAAP EPS were -$0.85 for Q2 against -$0.53 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.1%, 110 basis points worse than the prior-year quarter. Operating margin was -25.1%, much worse than the prior-year quarter. Net margin was -17.2%, 570 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $386.0 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $1.52 billion. The average EPS estimate is $3.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 760 members out of 879 rating the stock outperform, and 119 members rating it underperform. Among 233 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 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 $62.00.
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