10/26/12

Deckers Outdoor’s Q3 web sales increase 29%

But rising raw materials costs reduced profits.

Kevin Woodward , Senior Editor

The rising prices of sheepskin and raw materials hammered Deckers Outdoor Corp.’s third quarter profits, the company says, although online sales jumped 29.1%

For the quarter ended Sept. 30, Deckers, maker of Ugg and Teva brand footwear and No. 161 in the Internet Retailer Top 500 guide, reported:

The web comprised about 3.5% of total sales in the quarter, compared with 2.5% in Q3 of last year.

“Over the past two years, we have raised prices on selective key styles to help mitigate the impact of an 80% increase in our sheepskin and raw material costs over this same period,” says Angel Martinez, president, CEO and chairman. “We believe that these selective price increases, particularly during a period of one of the warmest years on record, has pushed us above the consumer’s price-value expectations for the Ugg brand.”

For the first nine months of 2012, the company reported:

The online channel comprised 5.6% of total sales in the first three quarter of the year, compared with 5.1% last year.

Topics:

Deckers Outdoor Corp., earnings, Financial result, financials, Q3 results, quarterly report, sandals, shoes, Top 500, Ugg

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