Deckers Brands posts record sales

Worldwide
Published:  05 February, 2020

Net sales for the U.S. headquartered footwear Group increased 7.4% to US$938.7 million for the third quarter of its fiscal 2020, up from US$873.8 million for the same period in the previous fiscal year. On a constant currency basis, net sales increased 8.4%.

Deckers Brands gross margin was 54.1% compared with 53.8% for the same period of its fiscal 2019, and operating income was US$255.8 million against a Generally Accepted Accounting Principles (GAAP) operating income of US$244.7 million and a non-GAAP operating income of US$242.3 million a year ago. Diluted earnings per share was US$7.14 in the quarter, up from US$6.68 for the same period in the previous year.

"Our third quarter results were driven by three of our brands experiencing record levels of quarterly revenue, resulting in an updated outlook that reflects another year of strong top-line growth and earnings expansion", said Dave Powers, President and CEO, Deckers Brands. "Heading into the fourth quarter, our brands are intent on maintaining the momentum seen throughout this fiscal year as we are planning continued investment in consumer engagement opportunities and compelling product introductions”, he added.

Ugg brand net sales for the third quarter increased 2.6% to US$781.1 million, Hoka One One brand net sales were up 63.6% to US$93.1 million, while sales of the Teva brand decreased 25.1% to US$17.2 million and Sanuk brand net sales were down 34.5% to US$8.5 million.

For the fourth quarter ending March 31, 2020, Deckers Brands expects Net sales to be in the range of US$392 million to US$402 million, and diluted earnings per share to be in the range of US$0.35 to US$0.45. For the full year, net sales are now expected to be in the range of US$2.150 billion to US$2.160 billion.

Credit: Teva