World Footwear

Companies

Hoka's performance stands out in the second quarter

Nov 1, 2022 United States
Hoka's performance stands out in the second quarter
Deckers Brands posted a net sales increase of 21.3% in the second quarter of fiscal 2023, as compared to the same period of last year, with Hoka's sales growth of 58.3% standing out
"Deckers' strong performance in the first half of fiscal year 2023 is a testament to our team's execution, despite a challenging macroeconomic backdrop. As we head into the UGG brand's peak selling season and continue to fuel expanding demand for HOKA performance footwear, we are confident in our ability to deliver our maintained full year guidance", commented Dave Powers, President and Chief Executive Officer.

Second Quarter Results

In the second quarter of the current fiscal year, the company's net sales totalled 875.6 million US dollars, as compared to 721.9 million US dollars in the same period of fiscal 2022, which reflects an increase of 21.3%; on a constant currency basis, net sales grew by 24.8%.

On a comparable basis to the second quarter of fiscal 2021, Hoka's brand net sales grew by 58.3% in this period, contributing 333.0 million US dollars to the total revenue, and UGG brand sales generated 476.5 million US dollars, increasing by 6.3%. Teva brand net sales were up by 4.3%, amounting to 30.1 million US dollars and Other Brands net sales rose by 17.9%, reaching 28.5 million US dollars. Sanuk brand was the only one to report a sales decline, respectively, of 25.2%, adding 7.5 million US dollars.

By channel, in the three months to the 30th of September, Deckers' wholesale net sales rose by 16.7%, reaching 636.5 million euros, whereas its Direct-to-Consumer (DTC) net sales were up by 35.3%, amounting to 239.1 million US dollars, on a comparable basis a similar period of the prior fiscal year.

Meanwhile, by geography, the group's domestic net sales rose by 20.0% in the second quarter of fiscal 2022, reaching 616.7 million US dollars, while international sales totalled 257.9 million US dollars, reflecting an increase of 24.4%, as compared to the second quarter of the prior fiscal year.

Deckers' gross margin reduced from 50.9% in the second quarter of the current fiscal year to 48.2% this second quarter.

In the second quarter of fiscal 2023, the Californian-based group reported diluted earnings per share of 3.80 US dollars, on a comparable basis to diluted earnings per share of 3.66 US dollars in the same period of last fiscal year.

Full Year Outlook

For fiscal 2023, Deckers is reiterating the previous guidance, as it still expects net sales in the range of 3.45 billion US dollars to 3.50 billion US dollars, and diluted earnings per share between 17.50 US dollars and 18.35 US dollars.


Image Credits: activesalem.com


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