Deckers, the owner of footwear brands such as Teva, Ugg and Sanuk, suffered a remarkable decline in net income in the first three months of its financial year: Profit decreased by 54 percent to $7.7 million compared with last year's first quarter. In the same period sales increased, however, by 20 percent to $246.3 million. Ugg's sales jumped by 7 percent to $158.1 million, but Teva's turnover slipped by 1 percent to $49.8 million. Recently acquired, Sanuk reached sales of $32.4 million. The turnover of the whole group in the U.S. was up by 15 percent to $170.6 million, but sales soared elsewhere around the world by 34 percent to $75.7 million. Deckers has lowered its outlook for this year's sales increase from 15 to 14 percent, mainly due to uncertainties about its business overseas, notably in Europe. Among other factors, Deckers mentioned the development of sheepskin prices as a major issue that is putting margins under pressure. It reiterates its expectation that relief in this sector is not expected to come before 2013 (more in Shoe Intelligence).

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