Deckers confident as growth continues in second quarter

United States
Published:  31 October, 2022
Credit: Ugg

Deckers Brands has reported its financial results for the second quarter of the 2023 financial years, with continuing strong growth.

The company achieved US$876 million in reported revenue for the second quarter of the fiscal year, an increase of 21% year-on-year.

Wholesale net sales were up in the period by 16.7% to US$636.5 million, while direct-to-consumer sales saw an increase of 35.3% to US$239.1 million.

Domestic net sales grew by 20% in the second quarter to a total of US$617.7 million and international net sales achieved a total of US$257.9 million, up by 24.4%.

The gross margin for the period was 48.2%, compared to 50.9% in the same period last year, while the operating income result was US$127.8 million.

For the brands, Ugg net sales increased by 6.3% to US$476.6 million. Hoka brand net sales were up by 58.3% to US$333 million, Teva up by 4.3% to US$30.1 million, Sanuk up by 25.2% to US$7.5 million and net sales for other brands, primarily composed of Koolaburra, were up by 17.9% to US$28.5 million.

For the full 2023 financial year, the company is expected net sales in the range of US$3.45-3.5 billion, with a gross margin around 50.5%.

"Deckers' strong performance in the first half of fiscal year 2023 is a testament to our team's execution, despite a challenging macroeconomic backdrop," said Dave Powers, President and Chief Executive Officer.

"As we head into the Ugg brand's peak selling season and continue to fuel expanding demand for Hoka performance footwear, we are confident in our ability to deliver our maintained full-year guidance."