In the third quarter, the company achieved net sales of US$1.35 billion, up by 13.3% year-on-year (17.5% on a constant currency basis).
By channel, wholesale net sales were up by 8% to US$646.3 million, while direct-to-consumer (DTC) sales saw growth of 18.7% to reach US$699.3 million.
Domestic net sales (in the U.S.) increased by 13.9% for Deckers in the third quarter to US$906.8 million, while international net sales grew by 12.1% to US$438.8 million.
The gross margin for the period was 53%, up from 52.3% in the same period of the previous financial year, and operating income was US$362.7 million.
Hoka continued to lead the brand results, achieving growth of 90.8% year-on-year to US$352.1 million, with Teva following at growth of 48.3% to US$30.5 million. Ugg reported a drop of 1.6% in net sales for the third quarter to reach US$930.4 million.
Meanwhile, Sanuk saw net sales drop by 7.4% to US$5.6 million, and Deckers’ other brands, primarily composed of Koolaburra, dropped by 12.1% to US$26.9 million.
Looking forward to the full financial year results, Deckers is expected net sales to be in the range of US$3.5 to 3.53 billion. Meanwhile, gross margin is expected to be 50.5%.
“Our brands delivered another stellar quarter, led by record results for both Hoka as well as our consolidated direct-to-consumer business,” said Dave Powers, President and Chief Executive Officer of the group.
“The consistent strength of Deckers’ results thus far in fiscal year 2023, despite macroeconomic and currency headwinds, are the result of our brand marketplace management actions and dedication to long-term strategic priorities. We believe Ugg and Hoka are two of the healthiest, well positioned brands in their respective markets, and with the strength of our operating model, Deckers is poised for continued success going forward.”