February 25, 2010 / 9:41 PM / 10 years ago

UPDATE 2-Deckers Q4 beats, confirms int'l distrbution overhaul

* Q4 EPS $5.22 vs est $4.28

* Q4 revenue up 15 pct, tops Street view

* Sees 2010 sales up 11 pct, Q1 up 7 pct

* Sees $0.38 one-time charge on int’l distribution change

* Shares up as much as 9 pct after market (Adds details, share movement, background)

Feb 25 (Reuters) - Deckers Outdoor Corp’s DECK.O fourth-quarter results handily beat market expectations, boosted by sales of its core UGG brand, and the shoe maker forecast a strong 2010, sending shares up as much as 9 percent in trading after the bell.

The shoe maker also said that starting January 2011, and following the expiration of existing distribution agreements, it will assume control of distributing its UGG, Teva and Simple brands in the U.K. and the UGG and Simple brands in the Benelux region and in France.

“The incremental sales and gross margin benefits from selling directly to our wholesale customers will more than offset the infrastructure investments in 2010 and drive higher earnings in the future,” Chief Executive Angel Martinez said.

As part of the transition, Deckers said it will incur incremental expenses in 2010 and see a shift in sales from 2010 to 2011.

The transition would result in an estimated charge of about $8.0 million or 38 cents a share, of which about 65 percent will be a one-time impact, the company said.

Deckers expects full-year 2010 earnings to grow 5 percent from $8.94 a share on sales of about $902.7 million. [ID:nWNAB2182]

Analysts were expecting a profit of $8.38 a share on sales of about $841.25 million, according to Thomson Reuters I/B/E/S.

For the fourth quarter ended Dec. 31, the maker of sheepskin boots and slippers posted a profit of $67.7 million, or $5.22 cents a share, up from $40.5 million, or $3.07 a share, a year earlier.

Revenue at the company, whose rivals include Skechers USA Inc (SKX.N) and Timberland TBL.N, rose 15 percent to $348 million in the period.

Analysts were looking for earnings of $4.28 a share, on revenue of $320.9 million.

Sales for the company’s UGG brand jumped 16 percent to $333.3 million, while international sales nearly doubled to $39.3 million.

Shares of the Goleta, California-based company touched a high of $115.75 in extended trade. They closed at $106.16 Thursday on Nasdaq. (Reporting by Shradhha Sharma and Viraj Nair in Bangalore; Editing by Maju Samuel, Anthony Kurian)

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