Deckers Brands Q1 sales increase 10 percent

First quarter sales at Deckers Brands increased 10 percent to 675.8 million dollars, while on a constant currency basis, net sales increased 11.1 percent.

The company’s wholesale net sales were 425.4 million dollars, direct-to-consumer (DTC) net sales increased 35.3 percent to 250.4 million dollars and DTC comparable net sales increased 33.4 percent.

Deckers reported domestic net sales increase of 9.1 percent to 419.5 million dollars and international net sales increase of 11.4 percent to 256.3 million dollars.

Gross margin was 51.3 percent, operating income was 70.7 million dollars and diluted earnings per share rose to 2.41 dollars.

"Deckers begins fiscal year 2024 in a position of strength, accelerating towards our outlook for the full year, which has been raised to reflect Hoka brand momentum," said Dave Powers, the company’s president and CEO in a statement.

The company said, Hoka brand net sales increased 27.4 percent to 420.5 million dollars, UGG brand net sales decreased 6 percent to 195.5 million dollars, Teva brand net sales decreased 18.8 percent to 48.4 million dollars, Sanuk brand net sales decreased 32.3 percent to 9.6 million dollars and other brands, primarily composed of Koolaburra decreased 33.9 percent to 1.8 million dollars.

For the year ahead, the company added, net sales are now expected to be approximately 3.980 billion dollars, gross margin is still expected to be approximately 52 percent, operating margin is still expected to be approximately 18 percent and diluted earnings per share to be in the range of 21.75 dollars to 22.25 dollars.