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Earnings Roundup

Deckers posts quarterly loss

August 08, 2008|From Times Wire Services

Deckers Outdoor Corp., the maker of Ugg boots and Teva sandals, sank in late U.S. trading after the company posted its first loss since 2002 and forecast third-quarter profit that trailed analysts' estimates.

Deckers shares fell $4.43 to $110.73 in extended trading after closing at $115.16, up $3.18.

The Goleta, Calif.-based company reported a second-quarter net loss of $3.82 million, or 29 cents a share, because of a $14.9-million pretax charge related to its Teva trademarks. That contrasts with profit of $2.27 million, or 17 cents, a year earlier, Deckers said.

U.S. consumers have reined in their discretionary spending as they deal with record gasoline prices and falling home values. The Teva brand was more sensitive to slowing spending than the Ugg brand, the company said, forcing it to reevaluate how it accounted for Teva trademarks on its balance sheet.

Revenue rose 73% to $91.1 million. Ugg-brand sales more than doubled to $60.6 million in the quarter, from $26.3 million the year before, while Teva sales rose 4.8% to $25.2 million.

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