Deckers Outdoor Corporation, the parent company of sheepskin boot giant Ugg Australia and footwear brand Teva, has reported a loss in the second quarter of this financial year.
In the three months to June 30, the footwear company lost $20.1m (£12.8m), more than double the $7.3m fall reported for the same period a year ago.
Deckers cited two main reasons for the loss - its $153.5m acquisition of footwear brand Sanuk and a $100m bill for stock repurchases.
This comes despite an increase in revenues, up 13.1% on last year to $174.4m. Sales from Deckers’ own retail stores and ecommerce channels drove top-line growth during the year, up 25% and 40.1% respectively while sales of the Ugg Australia brand dipped 0.3% and Teva fell by 15.4%.
“We experienced better-than-expected sales trends in several areas of our business during the second quarter,” said Angel Martinez, chairman, president and chief executive of Deckers.
“Sell-through of the Ugg brand in our direct-to-consumer channel was higher than planned, highlighted by a 43.9% increase in ecommerce sales year over year and a 6.8% same store sales increase.”
Deckers did not split out separate results relating to its UK performance but said its global outlook for the rest of the year was positive, with revenues expected to increase by around 14% on 2011. Sales of Ugg are expected to rise by 10%.
In February Deckers announced that it was to axe several high profile Ugg Australia accounts in the UK including etail giant Asos, footwear retailer Footasylum and young fashion chain USC as it looked to drive increased sales through its own direct-to-consumer channels.