Deckers Brands reported its results for the first quarter of its fiscal year 2017, posting better-than-expected results.
Net sales at the California-based company decreased 18.4% to $174.4 million compared to $213.8 million for the same period last year. The company said the year over year decrease was due to the timing of order shipments between quarters, a decrease in direct-to-consumer comparable sales, and fewer close-out sales. On a constant currency basis, net sales decreased 18.8%.
Despite this, the company still beat Wall Street expectations, posting an operating loss of $78.3 million compared to $63.7 million for the same period last year. Adjusted loss per share was $1.80, beating the $2.07 analysts had predicted.
“We are encouraged by our start to fiscal 2017, and we remain on track to deliver the sales and profitability targets we established for the year,” said Deckers Brands President and CEO Dave Powers in a statement. “I am excited about the progress we are making in this transitional year, and believe we are positioning the company to capitalize on the opportunities in front of us.”
Ugg brand net sales for the first quarter decreased 19.8% to $91.9 million compared to $114.5 million for the same period last year. The decrease in sales was blamed on a shift in the timing of order shipments between quarters which, “impacted global wholesale and distributor sales,” the company said in its report.
Sales at Teva for the first quarter decreased 17.3% to $34.7 million compared to $41.9 million for the same period last year. At Sanuk, net sales decreased 20.2% to $26.7 million, compared to $33.5 million last year.
“Looking ahead, I am confident that our product lineup and marketing plans for this fall and holiday will help drive sales during our key selling season,” said Powers.
The company reiterated its guidance for the 2017 fiscal year, saying it expects net sales to be in the range of down 3 percent to flat, and EPS in the range of $4.05 to $4.40.