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Despite Sales Growth, Where’s the EPS? Deckers is a growth company right now, and revenues are growing quite well. Current estimates call for about 33% revenue growth this year, and another 20% next year. The problem for Deckers is that those numbers don’t make the bottom line. Take a look at the following table. The sales growth rate increased from 2009 to 2011 (expected), but the EPS growth rate has come down quite a bit. In fact, in 2011 and 2012 earnings per share are expected to grow at a rate less than sales. If the company cannot improve its margins while revenues are growing at a 30% clip, what happens when revenues slow down to, say, 10% growth year over year?
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