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With greater than 40% in the shares already http://monclerhotsale.inalcajbs.com/ not just モンクレール アウトレット 長島 brief, a buyback in location, softball 3Q guidance and a モンクレール キッズ 大人 depressed P/E numerous of 11x on my street low $3.15 EPS estimates I wrote Deckers (DECK) was a dangerous モンクレール レディース 中古 quick within the mid30s and recommended investors cover before Q3 was reported. (See note right here.) Well, my numbers were directionally right, but I was incorrect on the stock because the shares have traded down one other 17% following hours to beneath $30.
Right here http://monclerdiscount.inalcajbs.com/ practically nothing http://monclersale.inalcajbs.com/ price モンクレール レディース ロング is usually a モンクレール ダウン 新作 for the reason that モンクレール 2014 秋冬 メンズ snapshot on the モンクレール 店舗 直営店 debacle:
1) Sales were $376 million, down 9% vs last year with Ugg brand sales down 11% (and very same モンクレール ダウン 新作 for the reason that モンクレール マヤ シャイニー reduce モンクレール マヤ 正規品 retailer sales at retail down 13%). That was even worse than I anticipated ($390 million in sales) and a lot モンクレール 店舗 福岡 accomplishment モンクレール キッズ サイズ worse than consensus of $413 million.
two) Gross margins compressed to 42.3% from 49.0% final year and reflect cost モンクレール アウトレット 三田 cuts the enterprise モンクレール ダウン 新作 accomplishment モンクレール マヤ ウール confirmed it had created in an try to forestall order cancellations and spur sell by way of. Management expects margins to be 47.0% in Q4. We'll see.
3) SG came in nicely モンクレール ダウンベスト ビームス under モンクレール ダウン レディース 正規品 my estimate at $99.7 million (I had $120 million) and under モンクレール アウトレット 三田 last モンクレール レディース サイズ year's $112.two million. Extra on this later.
four) Regardless of the lower than anticipated sales and gross margins, the SG variance, a slightly reduced tax price plus a reduce モンクレール ダウン 新作 share count (in the buyback) enabled DECK's EPS to essentially beat consensus of $1.04 by 13% and come in at $1.18. But that "beat" is meaningless considering モンクレール レディース 2014 more than 40% on the company's enterprise is derived in Q4 that is what investors are appropriately focused on (and not surprisingly on the longterm growth and cash flow generation possible http://monclermens.inalcajbs.com/ with the organization).
5) Inventories have been a whopping $486 million of which $451 million was Ugg branded stuff. That is モンクレール レディース ダウンベスト within the モンクレール マヤ 正規品 a 36% boost http://monclernewonline.inalcajbs.com/ against a declining sales trend. Uggly.
A couple of factors モンクレール マヤ 正規品 stood out inside the press release which weren't discussed around the http://monclerhotsale.kingants.net/ price モンクレール ダウン レディース may be モンクレール 店舗 神戸 analyst conference get in touch with but are worth raising:
1) The firm drew down a whopping $275 million on its seasonal line of credit to fund not simply a ballooning inventory level but in addition モンクレール レディース ロング about $85 million of share repurchases inside the 3Q. Within the 10Q from the second quarter (released mid 3q) the line was reported to become $102 million so it seems inventory was still piling up at quarter's end. Also the typical share repurchase value was $46/share which suggests management can have believed their own excuses about weather, etc. mainly because モンクレール キッズ ポロシャツ why would you order http://monclerfashion.inalcajbs.com/ stock in front of disastrous earnings like DECK released currently (unless it was under http://moncleronlinesale.inalcajbs.com/ a 10b5 strategy and they did not manage the trigger finger on purchases)? The stock hasn't been close to $46 considering that mid September.
two) The reduce http://monclernewsale.inalcajbs.com/ in SG was surprising but most likely incorporated an adjustment to the bonus accrual. For example, accrued payroll dropped 43% from last year and didn't develop モンクレール レディース 中古 because it generally would because the corporation periodically accrued bonuses. If that is the case, bonuses should be leaner this year given the results but with this cut http://monclercheapsale.inalcajbs.com/ it is not clear one more cut this size is usually created in Q4 if needed to offset additional モンクレール ダウン 新作 disappointing sales.
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