Shares of Deckers Outdoor (DECK) ended the past trading week on a strong note. Shares rallied more than 15% after the company published a strong set of fourth quarter results on Thursday after the market close. Shares added another 2% in Monday's trading session.
Fourth Quarter Results
Deckers Outdoor generated fourth quarter revenues of $617.3 million, up 2.2% on the year before. Sales were driven by a 2.9% increase in UGG revenues, which make up 95% of firmwide sales. Strength in the smaller Sanuk brand was offset by weakness at the Teva brand. Revenues came in just below consensus estimates of $623.0 million.
As a result of the well-documented slowdown in revenues, as well as higher sheepskin input costs, margins are under pressure. Gross margins for the quarter fell by 470 basis points to 46.3%.
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