Deckers Outdoor Corp (NYSE: DECK) stock rose over 6% on 21st May, 2021 (as of 12:02:09 UTC-4 · USD; Source: Google finance) as the company posted better than expected results for the fourth quarter of FY 21. The company has reported net income for the fourth quarter of $33.5 million, up from $16.1 million. The growth in UGG was due to the strength in classic boots, winter boots and spring fluff products, while also benefiting from lapping last year’s disruption of wholesale shipments as well as retail store closures in the final two weeks of March. Continued exceptional performance with HOKA helped the brand deliver a quarterly revenue growth of 74% versus the prior year to $178 million as the company continued to see strong brand momentum and incredible consumer adoption. The company has ended fiscal year 2021 with $1.089 billion of cash and equivalents. Inventory was $278 million, down 11% from $312 million at the same time last year and due to the repayment in full of the corporate headquarter mortgage we had no outstanding borrowings.
DECK in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.18, beating the analysts’ estimates for the adjusted earnings per share of 64 cents, according to analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 49.7 percent to $561.2 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $437.09 million. Gross margin for the quarter was 53.2%, which represents a 170 basis point improvement due to the improved full price selling, a higher proportion of DTC business and favorable foreign currency exchange rates, partially offset by increased freight and transportation cost. SG&A for the quarter was $244 million or 43.5% of sales versus last year’s $176 million or 47% of sales.
Looking forward to the full year 2022, the company expects earnings to be in the range of $14.05 to $14.65 per share on sales expected to be in the range of $2.950 billion to $3.000 billion. Analysts currently estimate earnings to be of $14.50 per share on revenues to be of $2.70 billion. This forecast is based on HOKA growing in the 40% range, reaching an $800 million milestone, UGG growing in the high single digits to low double-digit range driven by domestic wholesale strength and international returning to growth, Koolaburra growing in the low double-digit range, Teva growing in the mid-single digit range, and Sanuk approximately flat to last year. Gross margin is expected to be approximately 53.3% which is 70 basis points lower than FY ’21.