Deckers net sales for the quarter ended on the 31st of December increased by3.6% on a constant currency basis. On a reported basis, net sales increased by 1.4% to a record 795.9 million US dollars.

Diluted earnings per share totaled 4.78 US dollars.

"Our third quarter was more challenging than we expected as warm weather and weak store traffic across retail pressured demand", commented Angel Martinez, Chief Executive Officer and Chair of the Board of Directors, adding: "While we have made significant progress diversifying our brands and product lines and transforming our organization over the past several years, we recognize the need to accelerate elements of our long-term strategy.  To do this, we are streamlining our organization so we can dedicate more resources to our largest market opportunities. We are targeting approximately 35 million US dollars in annualized run rate expense savings from office consolidations, realignment of our brand management, and select retail store closings. We plan to invest approximately 10 million US dollars of this savings back into the business. We are confident these changes will increase profitability and improve shareholder returns."

The company is realigning its brands across two groups, Fashion Lifestyle and Performance Lifestyle.  The Fashion Lifestyle group will encompass UGG and Koolaburra brands. The Performance Lifestyle group will house Teva, Sanuk and HOKA One One brands.

UGG brand net sales for the third quarter increased by 1.0% totaling 743.2 million US dollars, mainly driven by an increase in global Direct-to-Consumer (DTC) sales and domestic wholesale sales, partially offset by a decrease in international wholesale and distributor sales. On a constant currency basis, net sales increased approximately by 3.3%.

Teva brand net sales for the third quarter increased by 3.2% totaling 14.1 million (+4.1% on a constant currency basis); Sanuk brand net sales for the third quarter decreased by 17.0% reaching 17.0 million US dollars. The decrease in net sales was driven by a decrease in global wholesale and international distributor sales, partially offset by an increase in global DTC sales.

Combined net sales of the company's other brands increased 48.4% totaling 21.6 million US dollars.

The company has also identified 20 retail stores that are candidates for closure and is engaging a retail consulting firm to assist in assessing and implementing additional retail operational improvements as it continues to strengthen its global store fleet.