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Deckers Q4 Tops Analyst Expectations; Angel Martinez to Retire

California-based Deckers Brands held its Q4 earnings call this afternoon, revealing that CEO Angel Martinez would be retiring by the end of the month.

Effective May 31, Dave Powers will succeed Angel Martinez as Deckers Brand CEO. Martinez plans to retire, although he will continue to serve in his role as chairman of the company’s board of directors.

Deckers performed strongly in the last quarter of its fiscal year, reporting earnings per share (EPS) of 11 cents, 5 cents more than the 6 cents estimated by analysts. Quarterly revenue also topped expectations, coming in at $378.6 million for the quarter, well above the $362.08 million analysts had predicted.

“Our stronger than expected fourth quarter Non-GAAP operating results are very encouraging given the current market environment,” said Martinez. “Looking back on the year, our performance was challenged by record warm weather across the globe and store traffic declines across retail. While these issues have created lingering headwinds for the industry, I am confident that Deckers is well positioned to increase long-term shareholder value with the new leadership team in place, our robust Omni-Channel capabilities and strong brand portfolio.”

Deckers performance was bolstered by strong performance across its portfolio of brands, including Ugg, where net sales for the fourth quarter increased 13.3% to $245.6 million, compared to $216.8 million for the same period last year. Teva, meanwhile, reported net sales for the fourth quarter had increased 11.3% to $59.1 million, compared to $53.1 million for the same period last year on both a reported and constant currency basis.

Despite a strong fourth quarter, Deckers said in its report that it expects first quarter fiscal 2017 net sales to be down 20-25 percent, blaming the timing of order shipments between quarters. The company thus said it expects fiscal 2017 net sales to be in the range of negative 3 percent to flat.