Deckers Brands posts sales and earnings growth

For the second quarter, net sales at Deckers Brands increased 15.8 percent to 721.9 million dollars , while on a constant currency basis, net sales increased 14.8 percent.

Gross margin was 50.9 percent compared to 51.2 percent for the same period last year. Operating income was 128.2 million dollars compared to 128.6 million dollars for the same period last year. Diluted earnings per share rose to 3.66 dollars compared to 3.58 dollars for the same period last year.

“Deckers robust first half growth when compared to both the prior year and two years ago, reflects the increasing global footprint of Hoka, and the UGG brand’s evolution beyond women’s footwear,” said Dave Powers, president and chief executive officer of the company.

Deckers Brands reports improved performance across brand portfolio

The company’s UGG brand net sales for the second quarter increased 8 percent to 448.4 million dollars, Hoka brand net sales increased 47 percent to 210.4 million dollars, Teva brand net sales increased 4 percent to 28.8 million dollars, Sanuk brand net sales increased 6.2 percent to 10.1 million dollars, while other brands, primarily composed of Koolaburra, net sales decreased 14.1 percent to 24.2 million dollars.

The company’s wholesale net sales increased 20.7 percent to 545.2 million dollars, direct-to-consumer (DTC) net sales increased 2.8 percent to 176.7 million dollars, while comparable DTC net sales increased 1 percent over the same period last year.

Domestic net sales for the second quarter increased 20.4 percent to 514.6 million dollars and international net sales increased 5.7 percent to 207.3 million dollars.

For the full year, the company said that net sales are still expected to be in the range of 3.01 billion dollars to 3.06 billion dollars, gross margin is now expected to be approximately 51.5 percent, operating margin is now expected to be in the range of 17 percent to 18 percent and diluted earnings per share are now expected to be in the range of 14.15 dollars to 15.15 dollars.