In its financial results statement for the fourth fiscal quarter and fiscal year ended March 31, 2019, Deckers Brands said, fourth quarter net sales decreased 1.6 percent or 1.4 percent on constant currency to 394.1 million dollars, while full year net sales increased 6.2 percent to 2.020 billion dollars and on a constant currency basis, net sales increased 5.8 percent. Among the brands under its portfolio, Hoka One One brand net sales for the fourth quarter increased 33.2 percent to 67.1 million dollars, while full year net sales increased 45.4 percent to 223.1 million dollars.

"Fiscal 2019 represented another successful year for the Deckers organization, surpassing the milestone of 2 billion dollars in revenue and doing so with exceptional levels of profitability, while achieving our long-range targets a year ahead of schedule," said Dave Powers, the company’s President and Chief Executive Officer in a statement.

Highlights of Deckers Brands’ Q4 and full year results

Gross margin for the fourth quarter was 51.6 percent compared to 48 percent for the same period last year. Operating income was 31.6 million dollars compared to 18.3 million dollars, while non-GAAP operating income was 32.9 million dollars this year compared to 19.9 million dollars last year. The company said, diluted earnings per share were 82 cents compared to 66 cents for the same period last year, while non-GAAP diluted earnings per share were 85 cents compared to 50 cents last year.

Gross margin for the full year was 51.5 percent compared to 48.9 percent for the same period last year. Operating income was 327.3 million dollars compared to 222.6 million dollars for the same period last year, while non-GAAP operating income was 327 million dollars compared to 236.5 million dollars last year. The company added that diluted earnings per share were 8.84 dollars compared to 3.58 dollars for the same period last year and non-GAAP diluted earnings per share were 8.84 dollars compared to 5.74 dollars last year.

Deckers’ performance across core brands

The company further said that UGG brand net sales for the fourth quarter decreased 7.2 percent to 239 million dollars but for fiscal year 2019, net sales increased 1.7 percent to 1.533 billion dollars. Teva brand net sales for the fourth quarter decreased 3.8 percent to 52.9 million dollars but full year net sales increased 2.9 percent to 137.4 million dollars. Sanuk brand net sales for the fourth quarter decreased 11.7 percent to 31.5 million dollars and 9.1 percent to 82.6 million dollars for the full year.

Wholesale net sales for the fourth quarter increased 6.4 percent to 237.5 million dollars, while for fiscal year 2019, wholesale net sales increased 9.9 percent to 1.305 billion dollars. DTC net sales for the fourth quarter decreased 11.8 percent to 156.6 million dollars and comparable sales decreased 0.5 percent over the same period last year. For fiscal year 2019, DTC net sales decreased 0.1 percent to 715 million dollars, while comparable sales increased 1.9 percent.

Domestic net sales for the fourth quarter increased 1.2 percent to 252 million dollars and for fiscal year 2019, domestic net sales increased 8.9 percent to 1.278 billion dollars. International net sales for the fourth quarter decreased 6.3 percent to 142.1 million dollars, while for fiscal year 2019, international net sales increased 1.8 percent to 742.1 million dollars.

Deckers Brands announces outlook for full year 2020

For the twelve month period ending March 31, 2020, the company said, net sales are expected to be in the range of 2.095 billion dollars to 2.120 billion dollars, gross margin is expected to be in the range of 50 percent to 50.5 percent and non-GAAP diluted earnings per share expected to be in the range of 8.20 dollars to 8.40 dollars.

For the first quarter to June 30, 2019, the company added, net sales are expected to be in the range of 250 million dollars to 260 million dollars and non-GAAP diluted loss per share expected to be in the range of a 1.25 dollars to 1.15 dollars.

Picture credit: Facebook/Hoka One One