Deckers Brands delivers strong third quarter results

Worldwide
Published:  01 February, 2019

Sales for the U.S. based footwear manufacturer increased +7.8% in the third quarter of its fiscal 2019, to a record US$873.8 million, boosted by sales in the home market.

In the third fiscal quarter ended December 31, 2018, Deckers’ net sales increased +7.8% to US$873.8 million compared with US$810.5 million in the same quarter of 2017. On a constant currency basis, net sales increased +7.7%. Gross margin was 53.8% (Q3 2017: 52.2%), while operating income was US$244.7 million, up from US$193.2 million a year ago. “I am pleased to say that we are now well ahead of schedule to deliver on the long-term strategic goals we laid out two years ago," said Dave Powers, President and CEO, Deckers Brands.

Per brand, Hoka One One net sales increased +79.2% in the third quarter to US$56.9 million, Teva’s net sales were up +17.5% to US$22.9 million, and UGG’s +3.6% to US$761.0 million, while net sales for the Sanuk brand decreased -7% to US$12.9 million. Overall, domestic sales increased +14.2% in the period, while international sales decreased -2.6%.

Based on these results, Deckers says its Board of Directors has raised the full guidance for 2019. Net sales are now expected to be in the range of US$1.986 billion to US$2 billion, with gross margin forecast to be above 50.5%, and operating margin is now expected to be in the range of 14.5% to 14.7%.