Deckers Brands maintains outlook after strong Q2

Deckers Brands net sales increased 21.3 percent to 875.6 million dollars and on a constant currency basis, net sales increased 24.8 percent.

The company’s operating income was 127.8 million dollars compared to 128.2 million dollars and diluted earnings per share were 3.80 dollars compared to 3.66 dollars.

"Deckers' strong performance in the first half of fiscal year 2023 is a testament to our team's execution, despite a challenging macroeconomic backdrop," said Dave Powers, the company’s president and CEO.

"As we head into the UGG brand's peak selling season and continue to fuel expanding demand for Hoka performance footwear, we are confident in our ability to deliver our maintained full year guidance," Powers added.

Deckers Brands posts strong sales growth, maintains guidance

The company’s wholesale net sales increased 16.7 percent to 636.5 million dollars, direct-to-consumer (DTC) net sales increased 35.3 percent to 239.1 million dollars, while comparable DTC net sales increased 38.2 percent.

Domestic net sales increased 20 percent to 617.7 million dollars and international net sales increased 24.4 percent to 257.9 million dollars.

UGG brand net sales increased 6.3 percent to 476.5 million dollars, Hoka brand net sales increased 58.3 percent to 333 million dollars, Teva brand net sales increased 4.3 percent to 30.1 million dollars, Sanuk brand net sales decreased 25.2 percent to 7.5 million dollars and other brands, primarily composed of Koolaburra, net sales increased 17.9 percent to 28.5 million dollars.

The company’s net sales are still expected to be in the range of 3.45 billion dollars to 3.50 billion dollars, gross margin is now expected to be approximately 50.5 percent and diluted earnings per share are still expected to be in the range of 17.50 dollars to 18.35 dollars.