Deckers Outdoor’s Q3 web sales increase 29%

But rising raw materials costs reduced profits.

Kevin Woodward

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.


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