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Hoka and UGG drive sales of Deckers Brands

May 26, 2021 United States
Hoka and UGG drive sales of Deckers Brands
The California-based group announced financial results for the fourth fiscal quarter and fiscal year ended on the 31st of March 2021. Decker’s net sales increased by 49.7% in the fourth quarter of the year, and by 19.4% in the full year
"Fiscal 2021 was an exceptional year for Deckers, led by global growth of the HOKA brand, and broad-based demand for the head-to-toe assortment of UGG brand product. While our fourth quarter benefited from certain macro tailwinds as well as lapping last year's disruption, the health of our brands, strength of our omni-channel organization, and our digitally focused long-term strategies provided the foundation for success over the past year, accelerating our growth trajectory. We are excited for the year ahead as we invest in the long-term evolution of Deckers to drive sustainable top and bottom-line growth, stated Dave Powers, President and Chief Executive Officer.

Fourth Quarter Review

Decker’s net sales in the fourth quarter of the year increased by 49.7% to 561.2 million US dollars compared to 374.9 million US dollars for similar period last year. On a constant currency basis, net sales increased by 47.9%. Gross margin was 53.2% compared to 51.5% for the same period last year. Income from operations was 54.6 million compared to 16.7 million US dollars for the same period last year. Diluted earnings per share reached 1.18 US dollars compared to 0.57 US dollars int he fourth quarter of the previous year.

Full Fiscal Review

Net sales increased 19.4% to 2.546 billion US dollars compared to 2.133 billion US dollars in the previous fiscal year. On a constant currency basis, net sales increased by 18.4%. Gross margin was 54.0% compared to 51.8% for the same period last year. Income from operations stood at 504.2 million US dollars compared to 338.1 million US dollars for the same period last year. Diluted earnings per share was 13.47 US dollars compared to 9.62 US dollars in the previous fiscal year.

Brand Summary

In the fourth quarter, net sales for the UGG brand increased by 53.1% to 300.5 million US dollars compared to 196.3 million US dollars for similar period last year. For fiscal year 2021, net sales increased by 12.9% to 1.717 billion US dollars. HOKA ONE ONE brand net sales for the fourth quarter increased by 74.2% to 177.5 million US dollars compared to 101.9 million US dollars for the same period last year. For fiscal year 2021, net sales increased by 62.0% to 571.2 million US dollars. Teva brand net sales for the fourth quarter increased by 1.0% to 60.2 million US dollars compared to 59.6 million for the same period last year. For fiscal year 2021, net sales increased by 0.6% to 138.8 million US dollars. Sanuk brand net sales for the fourth quarter decreased by 8.8% to 12.1 million US dollars compared to 13.3 million US dollars for the same period last year. For fiscal year 2021, net sales decreased by 18.2% to 41.8 million US dollars. In the last four months of the year, other brands net sales, primarily composed of Koolaburra, for the fourth quarter increased by 178.5% to 10.9 million US dollars compared to 3.9 million US dollars for the same period last year. For fiscal year 2021, net sales increased by 9.4% to 76.7 million US dollars.

Channel Summary

Wholesale net sales for the fourth quarter increased by 41.4% to 326.1 million US dollars compared to 230.7 million US dollars for the same period last year. For fiscal year 2021, wholesale net sales increased by 6.0% to 1.479 billion US dollars. DTC net sales for the fourth quarter increased tby 63.0% to 235.1 million US dollars compared to 144.2 million US dollars for the same period last year. DTC comparable sales in the fourth quarter increased 76.3% over the same period last year, for which the final two weeks of retail store sales are excluded due to COVID-19 impacts in the prior year. For fiscal year 2021, DTC net sales increased by 44.8% to 1.067 billion US dollars.


Geographic Summary

Domestic net sales for the fourth quarter increased by 64.3% to 379.2 million US dollars compared to 230.8 million US dollars for the same period last year. For fiscal year 2021, domestic net sales increased by 25.7% to 1.761 billion US dollars. International net sales for the fourth quarter increased by 26.2% to 181.9 million US dollars compared to 144.1 million US dollars for similar period last year. For fiscal year 2021, international net sales increased 7.3% to 784.2 million US dollars

Outlook for 2022

For the full Fiscal Year 2022 (period ending on the 31st of March 2022), net sales are expected to be in the range of 2.950 billion US dollars to 3.000 billion US dollars. Gross margin is expected to be approximately 53.3%.

COVID-19 Update

Approximately 77% of the company's global stores were open for the entire fourth quarter. However, stores continue to operate with limited capacity due to enhanced health and safety protocols. Given the ongoing and uncertain pandemic conditions, which include meaningful local and regional differences in restrictions imposed on retail store operations, Deckers is anticipating that temporary retail store closures in certain geographies will continue for at least a portion of the first quarter of fiscal year 2022, and that there is a risk of ongoing or additional retail store closures and operating limitations based on expert agency guidance and local authority mandates.

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