Powered by healthy double-digit growth from both Ugg and Hoka, Deckers Brands reported earnings jumped 41.7 percent in its fiscal second quarter ended September 30 on a sales jump of 24.7 percent while hiking its outlook for the fiscal year. The Goleta, CA-based footwear company also said it plans to divest its Sanuk surf-inspired brand.
Second Quarter Fiscal 2024 Financial Review
(compared to the Q2 period last year)
- Net sales increased 24.7 percent to $1.092 billion compared to $875.6 million. On a constant currency basis, net sales increased 24.2 percent;
- DTC net sales increased 38.8 percent to $331.7 million compared to $239.1 million. DTC comparable net sales increased 36.8 percent. Wholesale net sales increased 19.4 percent to $760.2 million compared to $636.5 million;
- Domestic net sales increased 21.1 percent to $748.0 million compared to $617.7 million. International net sales increased 33.3 percent to $343.9 million compared to $257.9 million;
- Gross margin was 53.4 percent compared to 48.2 percent;
- SG&A expenses were $358.4 million compared to $294.1 million;
- Operating income was $224.6 million compared to $127.8 million; and
- Diluted earnings per share was $6.82 compared to $3.80.
For more details about the Deckers fiscal Q2 results, including the CEO’s commentary about Hoka, Ugg, and Teva and the reasoning behind the divesture of the Sanuk brand, go here:
Photo courtesy Ugg