Deckers Brands first quarter net sales increased 21.8 percent to 614.5 million dollars, while on a constant currency basis, net sales increased 23.5 percent.
The company also reaffirmed its financial outlook for the full fiscal year ending March 31, 2023.
"Fiscal year 2023 is off to a solid start, with Hoka driving strong growth, propelling the brand to eclipse the billion-dollar milestone over the trailing twelve-month period," said Dave Powers, the company’s president and chief executive officer.
Deckers Brands’ first quarter financial review
The company’s wholesale net sales increased 24.7 percent to 429.4 million dollars and direct-to-consumer (DTC) net sales increased 15.4 percent to 185.1 million dollars, while comparable DTC net sales increased 14.9 percent.
Domestic net sales increased 14.4 percent to 384.5 million dollars and international net sales increased 36.4 percent to 229.9 million dollars.
Gross margin for the quarter was 48 percent compared to 51.6 percent, operating income was 56.3 million dollars compared to 61.8 million dollars and diluted earnings per share were 1.66 dollars compared to 1.71 dollars.
By brand, Hoka net sales increased 54.9 percent to 330 million dollars, UGG brand net sales decreased 2.4 percent to 207.9 million dollars, Teva brand net sales increased 2 percent to 59.6 million dollars, Sanuk net sales decreased 5.9 percent to 14.2 million dollars and other brands, primarily composed of Koolaburra posted net sales decrease of 45.3 percent to 2.7 million dollars.
For the fiscal year 2023, the company said net sales are still expected to be in the range of 3.45 billion dollars to 3.50 billion dollars, gross margin to be approximately 51.5 percent, operating margin to be in the range of 17.5 percent to 18 percent and diluted earnings per share to be in the range of 17.50 dollars to 18.35 dollars.