On a constant currency basis, net sales increased +3.3% in the second quarter of fiscal 2019, and gross margin was 50.2% compared with 46.7% for the same period in fiscal 2018. Operating income was US$90.4 million, up from US$67.4 million a year ago. Diluted earnings per share was US$2.48 against US$1.54 for the same period last year.
Net sales for UGG decreased -1% in the quarter to US$396.3 million, down from US$400.4 million in Q2 2018, while Hoka One One net sales increased +28.4% to US$52.1 million compared with US$40.6 million for the same period of the previous fiscal year. Net sales for Teva totalled US$21.5 million (+0.6%), and Sanuk brand net sales decreased -9.4% to US$13.8 million.
Overall, U.S. net sales for the second quarter increased +2.9% to US$311.6 and international net sales were up +5.9% to US$190.3 million. “The continued profitability gains in the UGG brand, and top-line growth within the Hoka One One brand, drove second quarter results as both sales and earnings per share exceeded expectations,” said Dave Powers, President and CEO, Deckers. “Profitability in the second quarter was aided by a 350 basis point increase in gross margin over last year”, he added.
Deckers Brands says it expects sales in the third quarter to be in the range of US$805 million to US$825 million, and for the full year, ending March 31, 2019, to be in the range of US$1.935 billion to US$1.960 billion.