World Footwear

Companies

Deckers raises guidance for the year

Nov 6, 2018 / United States
Deckers raises guidance for the year
The California-based giant focusing in designing, marketing and distributing footwear, apparel and accessories, announced financial results for the second fiscal quarter and updated the financial outlook for the full fiscal year
"The continued profitability gains in the UGG brand and top-line growth within the HOKA ONE ONE brand drove second quarter results, as both sales and earnings per share exceeded expectations", commented said Dave Powers, President and Chief Executive Officer, adding: "Profitability in the second quarter was aided by a 350 basis point increase in gross margin over last year. While a portion of the increase in gross margin came from one-time savings in the quarter, the Company continues to execute well on our long-term plan of improving levels of profitability. Additionally, our confidence in our strategy, the momentum we see in the business and the strength of the brand portfolio has led us to raise our fiscal year 2019 guidance."

Second quarter financial review

Net sales increased by 4.0% totaling 501.9 million US dollars compared to 482.5 million US dollars for similar period last year. On a constant currency basis, net sales increased by 3.3%. Gross margin in the period was 50.2% compared to 46.7% in 2017. Operating income reached 90.4 million US dollars compared to 67.4 million US dollars in similar period last year.

Brand summary

UGG brand net sales for the second quarter decreased by 1.0% totaling 396.3 million US dollars compared to 400.4 million US dollars for similar period last year. HOKA ONE ONE brand net sales for the second quarter increased by 28.4% reaching 52.1 million US dollars compared to 40.6 million US dollars for the same period last year. Teva brand net sales for the second quarter increased by 0.6% to 21.5 million US dollars compared to 21.4 million US dollars for the same period last year. Sanuk brand net sales for the second quarter decreased by 9.4% totaling 13.8 million US dollars compared to 15.2 million US dollars for the same period last year.


Channel summary

Wholesale net sales for the second quarter increased by 4.3% to 408.0 million US dollars compared to 391.2 million US dollars last year. DTC net sales for the second quarter increased by 2.8% to 93.9 million US dollars compared to 91.3 million US dollars for the same period last year.

Geographic Summary

Domestic net sales for the second quarter increased by 2.9% to 311.6 million US dollars compared to 302.7 million US dollars for the same period last year. International net sales for the second quarter increased by 5.9% to 190.3 million US dollars compared to 179.8 million US dollars for the same period last year.

2019 Outlook

Deckers now expects net sales for the twelve month period ending on the 31st of march 2019 to be in the range of 1.935 billion US dollars to 1.960 billion US dollars.

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