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Deckers: sales exceed expectations

Oct 30, 2018 / United States
Deckers: sales exceed expectations
Net sales for Deckers Brands increased by 4% in the second quarter of the company’s fiscal 2019, totaling 501.9 million US dollars against 482.5 million US dollars in similar period of the previous 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 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 review

Net sales increased by 4.0% to 501.9 million US dollars compared to 482.5 million US dollars in similar period last year. On a constant currency basis, net sales increased by 3.3%. Diluted earnings per share totaled 2.48 US dollars compared to 1.54 US dollars in similar period last year.

Brand summary

UGG brand net sales for the second quarter decreased by 1.0% to 396.3 million US dollars compared to 400.4 million US dollars for the same period last year. HOKA ONE ONE brand net sales for the second quarter increased by 28.4% to 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% reaching 13.8 million US dollars compared to 15.2 million Us dollars for similar period last year.

Channel summary

Wholesale net sales for the second quarter increased 4.3% to 408.0 million US dollars compared to 391.2 million US dollars for the same period 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. DTC comparable sales for the second quarter increased 4.8% over 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 similar period last year.

Outlook

Net sales are now expected to be in the range of 1.935 billion US dollars to 1.960 billion US dollars.

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