Men's Walley by Ugg

GOLETA, Calif. (August 11, 2008)—Deckers Outdoor Corporation (DECK) released second quarter sales figures for fiscal 2008; though mainly positive, the company’s Teva brand suffered.

Ugg stole the spotlight, with sales for the quarter increasing 130.6 percent—from $26.3 million to $60.6 million—compared to the same period of 2007. Solid sales for the Simple brand—$4.7 million—reflected a 94 percent increase from the same quarter last year. The company’s overall net sales were also strong, jumping 72.8 percent to $91.1 million when compared with the same period last year.

“The positive momentum that the Ugg brand experienced at the start of the year continued into the second quarter which allowed us to once again exceed expectations,” says Angel Martinez, president, CEO and chairman of the Board of Directors. “A significant increase in fall orders both domestically and overseas, combined with solid sell-through of spring product in our direct to consumer business contributed to the brand’s outperformance.”

As for the trailing Teva brand, Deckers conducted an impairment evaluation and, based on the results, the company wrote down the value of the Teva trademarks and recorded a non-cash, pre-tax charge of $14.9 million in the second quarter.

According to Martinez, “The very challenging retail environment for the Teva brand contributed to our inability to support a portion of the value of the Teva trademarks on our balance sheet for accounting purposes.”

Based on second quarter results, the company has raised its full-year expectations from its original 31 percent rise in revenue, and is now projecting a 43 percent growth over 2007 numbers.

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