- Prachi Singh |
First quarter net sales at Deckers Brands increased 10.5 percent to 276.8 million dollars, while on a constant currency basis, net sales increased 11.6 percent. The company said, basic loss per share was 67 cents compared to the GAAP basic loss per share of 1 dollar and the non-GAAP basic loss per share of 98 cents for the same period last year.
The Deckers organization experienced a strong start to fiscal year 2020," said Dave Powers, the company’s President and CEO in a statement, adding, "With the first quarter now behind us, we are firmly committed to our strategies and remain confident in our abilities to deliver on them."
Review of Deckers Brands’ Q1 performance
Gross margin during the first quarter was 47 percent compared to 45.9 percent for the same period last year. The company added that operating loss was 31.4 million dollars compared to GAAP operating loss of 39.4 million dollars and non-GAAP operating loss of 38.9 million dollars for the same period last year.
UGG brand net sales increased 1.5 percent to 138.5 million dollars, Hoka One One saw net sales growth of 69.2 percent to 79.5 million dollars, while Teva brand net sales decreased 4.3 percent to 38.3 million dollars and Sanuk net sales decreased 23.5 percent to 18.7 million dollars. Wholesale net sales increased 10.7 percent to 196.6 million dollars and DTC net sales increased 10 percent to 80.3 million dollars, while comparable sales increased 16.2 percent over the same period last year.
The company further said that domestic net sales increased 18.1 percent to 167.3 million dollars and international net sales increased 0.6 percent to 109.5 million dollars compared to the same period last year.
Deckers Brands announces outlook Q2 and full year 2020
The company said, net sales are now expected to be in the range of 2.100 billion dollars to 2.125 billion dollars for the full year, gross margin to be approximately 50.5 percent, operating margin expected to be approximately 14.5 percent and non-GAAP diluted earnings per share to be in the range of 8.40 dollars to 8.60 dollars.
For the second quarter, the company expects net sales to be in the range of 515 million to 525 million dollars and non-GAAP diluted earnings per share in the range of 2.15 dollars to 2.25 dollars.