Deckers Brands Q3 net sales rise 7.8 percent, raises full year outlook

For the third quarter to March 31, 2018, Deckers Brands reported net sales increase of 7.8 percent to 873.8 million dollars compared to 810.5 million dollars for the same period last year. On a constant currency basis, the company said in a statement, net sales increased 7.7 percent. Gross margin for the quarter was 53.8 percent compared to 52.2 percent for the same period last year.

"With third quarter results delivered and an updated outlook for the full fiscal year 2019, I am pleased to say that we are now well ahead of schedule to deliver on the long term strategic goals we laid out two years ago," said Dave Powers, President and Chief Executive Officer of the company.

Deckers Brands posts rise in Q3 profit

Third quarter operating income reached 244.7 million dollars compared to 193.2 million dollars for the same period last year, while non-GAAP operating income was 242.3 million dollars compared to 203.1 million dollars last year. The company’s diluted earnings per share were 6.68 dollars compared to 2.69 dollars for the same period last year and non-GAAP diluted earnings per share were 6.59 dollars compared to 4.97 dollars last year.

UGG brand net sales for the third quarter increased 3.6 percent to 761 million dollars compared to 734.7 million dollars for the same period last year, Hoka One One net sales increased 79.2 percent to 56.9 million dollars, Teva brand net sales improved 17.5 percent to 22.9 million dollars, while Sanuk brand net sales decreased 7percent to 12.9 million dollars.

Wholesale net sales for the third quarter increased 12.5 percent to 482.2 million dollars compared to 428.8 million dollars for the same period last year, while DTC net sales increased 2.6 percent to 391.6 million dollars compared to 381.7 million dollars for the same period last year. DTC comparable sales for the third quarter increased 1.4 percent over the same period last year.

The company added that domestic net sales for the third quarter increased 14.2 percent to 573 million dollars, while international net sales decreased 2.6 percent to 300.8 million dollars during the quarter under review.

Deckers Brands raises full year outlook

The company further said that full year net sales are now expected to be in the range of 1.986 billion dollars to 2 billion dollars, gross margin to be above 50.5 percent, operating margin to be in the range of 14.5 percent to 14.7 percent and non-GAAP diluted earnings per share to be in the range of 7.85 dollars to 7.95 dollars.

Fourth quarter net sales are expected to be in the range of 360 million dollars to 374 million dollars and non-GAAP diluted earnings per share to be in the range of break-even to 10 cents.

Picture:UGG Blog