Deckers Outdoor Corp. announces fourth quarter and full year 1994 results.

CARPINTERIA, Calif.--(BUSINESS WIRE)--Feb. 21, 1995--Deckers Outdoor Corp. (NASDAQ:DECK) today announced financial results for the fourth quarter and full year ended December 31, 1994.

For the full year 1994, net sales totaled $85,818,000, an increase of 50.3% over net sales of $57,086,000 in 1993. Net income grew 66.6% to $10,506,000 in 1994 from $6,305,000 in 1993. Earnings per share for 1994 were $1.09 on 9,673,000 weighted average shares outstanding versus $0.81 on 7,809,000 weighted average shares outstanding in 1993.

Net sales for the quarter increased 19.7% to $14,068,000 from $11,757,000 in the fourth quarter of 1993. Net income was $1,221,000 compared with $1,334,000 last year. Earnings per share were $0.13 in the 1994 fourth quarter compared with $0.14 in the fourth quarter of 1993. Weighted average shares outstanding in the recent quarter increased to 9,669,000 compared to 9,294,000 in the fourth quarter last year. Gross margins were maintained at 48%. Sales and earnings were at the high end of the range that the company estimated in a preliminary disclosure of fourth quarter results on December 16, 1994.

"We believe 1995 will be another successful year for Deckers," said Douglas Otto, chairman and chief executive officer. "The 1995 Teva models have been very well received by our customers. This year, we continued our extension of the line, introducing new models of sport sandals for women and children. We have also introduced a new Teva chukka boot for late 1995. Demand for Simple shoes is growing. Simple represented 16.4% of our sales in 1994 compared with just 3.7% in 1993. We are very selective about the distribution of the Simple line, working to achieve the strong brand image for the shoes that Teva sport sandals has successfully won. Picante apparel will be seen in additional upper end catalog and retail stores this year.

"To position ourselves for the next step in our growth, we have broadened our senior management team. In January, John Ranelli, a Deckers Board member with experience at Timberland and Beatrice, joined the company as Chief Operating Officer. We strengthened the Marketing Department by hiring Jeffrey Hoffman as Vice President of Marketing and brought on National Sales Managers for the Teva and Simple lines. Peter Link will work as a consultant in Product Development. Mr. Link has resigned as a Director and Vice President of Marketing.

"With a broader management base, Deckers is poised to move aggressively in its pursuit of appropriate acquisitions and other business arrangements that will enable us to enhance our product offerings and continue our growth. We are very optimistic about the outlook for 1995," Otto concluded.

Deckers Outdoor Corp. designs, manufactures and markets innovative, function oriented footwear and apparel, developed specifically for high performance outdoor, sports and other lifestyle related activities as well as for casual use. The company's products are offered under the Teva, Deckers, Simple, Sensi and Picante brand names. -0-

                Deckers Outdoor Corp. and Subsidiaries
             Condensed Consolidated Statements of Earnings
                             (Unaudited)

                  Three-month period ended  Twelve-month period ended
                          December 31              December 31
                        1994       1993          1994       1993

Net sales         $ 14,068,000  11,757,000  $ 85,818,000  57,086,000
Cost of sales        7,322,000   5,792,000    43,979,000  27,316,000
 Gross profit        6,746,000   5,965,000    41,839,000  29,770,000
Selling, general
and administrative
expenses             4,775,000   3,777,000    24,287,000  18,652,000
 Earnings from
 operations          1,971,000   2,188,000    17,552,000  11,118,000

Other expense
(income):
 Interest income,
 net                  (179,000)   (182,000)     (641,000)    (39,000)
 Minority interest
 in net earnings
 (loss) of
 subsidiary                  0      30,000      (125,000)     79,000
 Miscellaneous
 expense (income)       44,000     (27,000)      203,000     123,000
                     2,106,000   2,367,000    18,115,000  10,955,000

Income taxes           885,000   1,033,000     7,609,000   4,650,000
 Net earnings     $  1,221,000   1,334,000  $ 10,506,000   6,305,000
Net earnings per
common and common
equivalent shares  $      0.13        0.14  $       1.09        0.81
Weighted average
common and common
equivalent shares
outstanding          9,669,000   9,294,000     9,673,000   7,809,000

                Deckers Outdoor Corp. and Subsidiaries
                 Condensed Consolidated Balance Sheets
                             (Unaudited)

                                        December 31,     December 31,
Assets                                      1994             1993
Current assets:
 Cash and marketable securities      $     7,722,000       21,225,000
 Trade accounts receivable, net           18,938,000       10,780,000
 Inventory                                23,410,000       13,243,000
 Prepaid expenses and other current
 assets                                    2,715,000        1,044,000
 Deferred tax assets                       1,202,000        1,026,000
  Total current assets                    53,987,000       47,318,000

Property and equipment, at cost, net       2,542,000        2,021,000
Intangible assets, net                     1,477,000          271,000
Note receivable from supplier              3,672,000        1,865,000
Other assets                                 973,000          426,000
                                     $    62,651,000       51,901,000

Liabilities and Shareholders' Equity
Current liabilities:
 Current maturities of long-term
 debt                                $       150,000          150,000
 Accounts payable                          1,769,000        2,591,000
 Accrued expenses                          2,254,000        1,786,000
 Income taxes payable                      1,558,000          893,000
  Total current liabilities                5,731,000        5,420,000
Long-term debt, less current maturities           --          150,000

Shareholders' equity:
 Preferred stock                                  --               --
 Common stock                                 96,000           96,000
 Additional paid in capital               33,807,000       33,724,000
 Retained earnings                        23,017,000       12,511,000
  Total shareholders' equity              56,920,000       46,331,000
                                     $    62,651,000       51,901,000

CONTACT: Deckers Outdoor Corp.

Diana M. Wilson, 805/684-7722

Morgen-Walke Associates, Inc.

Doug Sherk/Jenifer Kirtland/Kevin Mirise, 415/296-7383

Sue Rodney/Dave Faupel, 212/850-5600