Deckers Brands net sales up 2.3% in first quarter

Worldwide
Published:  19 August, 2020

The U.S. headquartered footwear and apparel manufacturer has reported net sales up 2.3% to US$283.2 million for the first quarter of the company’s fiscal 2021, ending June 30.

Deckers Brands gross margin in the first quarter was 50.3% compared with 47% for the same period of the company’s fiscal year 2020. Operating loss was US$7.7 million compared with an operating loss of US$31.4 million for the same quarter of the prior fiscal year. Income tax benefit was US$0.1 million compared with US$10.3 million for the same period last in fiscal 2020.

Net sales for the UGG brand decreased 10% in the first quarter to US$124.7 million, Teva brand net sales were down 7.9% to US$35.2 million, and net sales for the Sanuk brand decreased 29.2% to US$13.2 million in the quarter. The Hoka One One sports brand performed better, with net sales for the first quarter up 37.1% to US$109.0 million.

"First quarter performance was a testament to the resilience of our brands, the strength of our ecommerce platform, and the hard work of our employees," said Dave Powers, President and CEO, Deckers Brands. "While we are encouraged by the positive start to fiscal year 2021, we expect further challenges related to the Covid-19 pandemic, depending on the duration and severity of economic effects."

Deckers Brands’ distribution centre in Moreno Valley, California, as well as other third-party distribution facilities that the company leverages to service its operations, are currently in operation and supporting ongoing logistics. However, these facilities may continue to operate at limited capacity due to the enhanced health and safety measures now in place, said the company.