Deckers Brands shares were up more than 10 percent in after-hours trading on Thursday, October 25 after the parent of the Hoka, Ugg and Teva brands blew past analysts’ estimates and a last-minute downgrade from a BTIG analyst.

The company reported that net sales increased 20.1 percent to $1.31 billion in the fiscal second quarter ended September 30, compared to $1.09 billion in the prior-year fiscal Q2 period. On a constant currency basis, net sales increased 20.4 percent.

  • Hoka brand net sales increased 34.7 percent to $570.9 million compared to $424.0 million.
  • Ugg brand net sales increased 13.0 percent to $689.9 million compared to $610.5 million.
  • Teva brand net sales increased 2.3 percent to $22.0 million compared to $21.5 million.
  • Sanuk brand* net sales decreased 47.6 percent to $2.8 million compared to $5.4 million.
  • Other brands, primarily composed of Koolaburra, net sales decreased 15.8 percent to $25.8 million compared to $30.6 million.

“Hoka and Ugg produced outstanding second quarter results driven by strong consumer demand for our innovative and unique products,” said Stefano Caroti, newly-minted president and CEO, Deckers Brands. “As I step into the CEO role, I’m committed to building on our proven foundation to support growth, guided by our consumer-first mindset, brand-led philosophy, innovation-forward products, and globally driven focus. Our dedicated teams’ continued execution of Deckers long-term strategy has our company well-positioned to achieve an increased outlook for fiscal year 2025.”

Channel Summary

  • Direct-to-Consumer (DTC) net sales increased 19.9 percent to $397.7 million in Q2, compared to $331.7 million in Q2 last year. DTC comparable net sales increased 17.0 percent year-over-year.
  • Wholesale net sales increased 20.2 percent to $913.7 million in Q2, compared to $760.2 million in the prior-year Q2 period.

Geography Summary

  • Domestic net sales increased 14.2 percent to $853.9 million in Q2, compared to $748.0 million in Q2 last year.
  • International net sales increased 33.0 percent to $457.4 million in the fiscal quarter, compared to $343.9 million in the year-ago quarter.

Income Statement Summary
Gross margin was 55.9 percent in fiscal Q2, compared to 53.4 percent in fiscal Q2 last year, a 250 basis-point improvement year-over-year.

Selling, general, and administrative (SG&A) expenses were $428.2 million in fiscal Q2, compared to $358.4 million in the prior-year fiscal Q2 period.

Operating income was $305.1 million for the period, compared to $224.6 million in the year-ago period..

Diluted earnings per share was $1.59 compared to $1.14 per share last year.

During the quarter, the company effected a six-for-one forward stock split of its common stock (the stock split), while maintaining the par value of $0.01 per share, per the Company’s release on September 13, 2024. The share, per share, and resulting financial amounts in this press release, including prior period metrics, have been adjusted to reflect the effectiveness of the stock split.

Image courtesy Ugg/Deckers Brands