Deckers raises full year guidance as net sales rise

Worldwide
Published:  06 November, 2019
UGG's Stockton Boot

Second quarter fiscal 2020 sales for the U.S. based footwear manufacturing Group increased 8% to US$542.2 million.

Deckers Brands net sales increased 8% to US$542.2 million in the second quarter of the Company’s fiscal 2020, up from US$501.9 million in the same period of the previous fiscal year. On a constant currency basis, net sales increased 9.5%. Gross margin was 50.4% in the quarter compared with 50.2% a year ago, and operating income totalled US$97.1 million compared with a GAAP operating income of US$90.4 million for the same period last year.

UGG brand net sales increased 2.2% in the quarter to US$404.9, while that of Hoka One One were up 49.9% to US$78.1 million and Teva brand net sales by 6.7% to US$23 million. Sanuk brand net sales for the second quarter decreased 22.4% to US$10.7 million. Domestic net sales for the second quarter increased 14.9% to US$358.0 million, but international net sales recorded a 3.2% decline to US$184.2 million. On a constant currency basis, international net sales decreased 0.5%.

For its full year fiscal 2020 ending March 31, 2020, Deckers Brands now expects net sales to be in the range of US$2.115 billion to US$2.140 billion and gross margin to be approximately 50.8%, with diluted earnings per share to be in the range of US$8.90 to US$9.05.