Deckers Outdoor Corp (DECK) has reported 8.05 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $39.30 million, or $1.21 a share in the quarter, compared with $36.38 million, or $1.11 a share for the same period last year. On an adjusted basis, the company has earned $39.98 million, or $1.23 a share for the quarter. Revenue during the quarter went down marginally by 0.19 percent to $485.94 million from $486.86 million in the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 44.54 percent. Total expenses were 88.88 percent of quarterly revenues, down from 89.48 percent for the same period last year. This has led to an improvement of 60 basis points in operating margin to 11.12 percent.
Operating income for the quarter was $54.02 million, compared with $51.21 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $54.93 million.
"We are pleased with the results of our second quarter and the progress on our plans for the year," said Dave Powers, president and chief executive officer. "Despite a challenging consumer environment, we delivered earnings per share results that were higher than last year and at the top end of our expectations. Looking ahead, our teams are prepared for the upcoming selling season, and we are excited about our fall and holiday product and marketing plans."
Deckers Outdoor Corp expects revenue to decline in the range of 3 percent to 1.50 percent for the financial year 2017. The company projects diluted earnings per share to be in the range of $4.16 to $4.28 for the third-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $4.05 to $4.25.
Working capital increasesDeckers Outdoor Corp has recorded an increase in the working capital over the last year. It stood at $529.17 million as at Sep. 30, 2016, up 21.37 percent or $93.16 million from $436.01 million on Sep. 30, 2015. Current ratio was at 1.97 as on Sep. 30, 2016, up from 1.68 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 92 days for the quarter from 127 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 99 days for the quarter compared with 163 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 80 for the same period last year.
Debt comes down
Deckers Outdoor Corp has recorded a decline in total debt over the last one year. It stood at $310.39 million as on Sep. 30, 2016, down 11.25 percent or $39.35 million from $349.74 million on Sep. 30, 2015. Total debt was 19.74 percent of total assets as on Sep. 30, 2016, compared with 22.24 percent on Sep. 30, 2015. Debt to equity ratio was at 0.32 as on Sep. 30, 2016, down from 0.40 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
