Executive Summary

• For fiscal 4Q16, Deckers Brands reported adjusted EPS of $0.11 versus the consensus estimate of $0.05.
• Total revenue was $378.6 million versus consensus of $362.1 million. Ugg sales totaled $245.6 million versus consensus of $220.5 million, while Teva sales totaled $59.1 million versus consensus of $56.1 million and Sanuk sales totaled $38.5 million versus consensus of $40.3 million.
• Management provided 1Q17 EPS guidance of $(2.10)–$(2.20) versus consensus of $(1.46). Total revenue is expected to decline by 20%–25% versus analysts’ expectation of a decline of 1.7%. The expected decline is primarily due to the timing of order shipments between quarters. Full-year guidance calls for EPS of $4.05–$4.40 versus consensus of $4.58. Total revenue is expected to be flat–(3)% versus consensus of up by 4%.