On Apr. 27, Deckers Outdoor (NASDAQ:DECK) released Q1 2006 earnings for the period ended March 31.

  • Teva and UGG net sales dropped from last year, but Simple sales jumped nearly 50%.
  • Margins were down across the board. Gross margins were down almost 2% because of higher closeouts and inventory write-downs.
  • Management raised earnings guidance for fiscal 2006 but lowered it for Q2. In Q2, the company expects lower gross margins and expense timing to hit the bottom line.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

% Change

Sales

$50,310

$56,004

$64,263

(12.9%)

Net Profit

--

$5,649

$8,887

(36.4%)

EPS

$0.24

$0.44

$0.69

(36.2%)



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

Margin Checkup

Q1 2006

Q1 2005

Change

Gross Margin

44.10%

46.01%

(1.91)

Op. Margin

15.92%

22.41%

(6.49)

Net Margin

10.09%

13.83%

(3.74)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q1 2005

% Change

Cash + ST Invest.

$65,340

$17,634

270.5%

Inventory

$31,281

$45,446

(31.2%)

Accounts Rec.

$28,193

$39,206

(28.1%)



Liabilities

Q1 2006

Q1 2005

% Change

Long-Term Debt

--

--

N/A

Accounts Pay.

$8,922

$13,669

(34.7%)



Learn the ways of the balance sheet.

Cash Flow Highlights

None provided.

Related Companies:

  • Timberland (NYSE:TBL)
  • Nike (NYSE:NKE)
  • Skechers (NYSE:SKX)
  • K-Swiss (NASDAQ:KSWS)
  • Columbia (NASDAQ:COLM)

Related Foolishness:

Deckers and Columbia are Motley Fool Hidden Gems recommendations.

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.

At the time of publication, Joseph Khattab had no positions in the companies mentioned. Fool rules are here.