- Prachi Singh |
Deckers Brands’ net sales increased 8 percent to 542.2 million dollars in the second quarter, while on a constant currency basis, net sales increased 9.5 percent. The company said, gross margin was 50.4 percent compared to 50.2 percent for the same period last year and diluted earnings per share were 2.71 dollars compared to the GAAP diluted earnings per share of 2.48 dollars for the same period last year and the non-GAAP diluted earnings per share of 2.38 dollars last year.
“We continue to see positive momentum in the fiscal year, and we are raising our full year outlook to reflect the acceleration we are seeing in the Hoka brand, while at the same time maintaining expectations for the UGG brand heading into the peak selling season,” said Dave Powers, President and Chief Executive Officer in a statement.
Second quarter highlights of Deckers Brands’ results
The company added that UGG brand net sales for the second quarter increased 2.2 percent to 404.9 million dollars, Hoka One One brand net sales increased 49.9 percent to 78.1 million dollars, Teva brand net sales increased 6.7 percent to 23 million dollars and Sanuk brand net sales decreased 22.4 percent to 10.7 million dollars.
The company’s wholesale net sales for the quarter increased 8.7 percent to 443.5 million dollars, while DTC net sales increased 5.1 percent to 98.7 million dollars and DTC comparable sales increased 7.2 percent over the same period last year. Domestic net sales increased 14.9 percent to 358 million dollars and international net sales decreased 3.2 percent to 184.2 million dollars. On a constant currency basis, international net sales decreased by 0.5 percent.
Raising its guidance, the company said full year net sales are now expected to be in the range of 2.115 billion dollars to 2.140 billion dollars, gross margin is now expected to be approximately 50.8 percent and diluted earnings per share now expected to be in the range of 8.90 dollars to 9.05 dollars. For the third quarter, net sales are expected to be in the range of 885 million dollars to 900 million dollars and diluted earnings per share are expected to be in the range of 6.30 dollars to 6.40 dollars.
The company also announced the appointment of Mike Devine as new Chairman of the board, who succeeds John Gibbons, who has served as chairman since September 2017 and as a director since 2000, during which time he also served as lead independent director. Gibbons will continue to serve on the company’s board.