Deckers Brands full year sales and earnings improve
22 May 2020
For the fourth quarter, Deckers Brands’ net sales decreased 4.9 percent to 374.9 million dollars and n a constant currency basis, net sales decreased 4.5percent. The company said in a statement that full year net sales increased 5.6 percent to 2.133 billion dollars and on a constant currency basis, net sales increased 6.5 percent. Fourth quarter diluted earnings per share were 57 cents compared to GAAP diluted earnings per share of 82 cents and Non-GAAP diluted earnings per share of 85 cents for the same period last year. For the full year, diluted earnings per share were 9.62 dollars compared to GAAP and Non-GAAP diluted earnings per share of 8.84 dollars for the same period last year.
“Fiscal year 2020 performance was driven by the strength of our brand portfolio, fuelled by targeted investments in our key initiatives, coupled with disciplined financial management,” said Dave Powers, the company’s President and Chief Executive Officer, adding, “We expect fiscal year 2021 results to be impacted depending on the duration and severity of the Covid-19 pandemic, but our in-demand brands, omni-channel capabilities, and healthy balance sheet position us well to weather this challenging environment.”
Financial review of Deckers Brands’ Q4 and full year results
Gross margin for the quarter was 51.5 percent compared to 51.6 percent for the same period last year. Operating income was 16.7 million dollars compared to GAAP operating income of 31.6 million dollars for the same period last year and Non-GAAP operating income of 32.9 million dollars.
Gross margin for the full year was 51.8 percent compared to 51.5 percent for the same period last year. Operating income was 338.1 million dollars compared to GAAP operating income of 327.3 million dollars and Non-GAAP operating income of 327 million dollars for the same period last year.
The company added that UGG brand net sales for the fourth quarter decreased 17.9 percent to 196.3 million dollars and for fiscal year 2020, net sales decreased 0.8 percent to 1.521 billion dollars. Hoka One One brand net sales for the fourth quarter increased 51.8 percent to 101.9 million dollars, while net sales increased 58 percent to 352.6 million dollars for the full year. Teva brand net sales for the quarter increased 12.5 percent to 59.6 million dollars, while full year net sales increased 0.4 percent to 138 million dollars. Finally, fourth quarter Sanuk brand net sales decreased 57.8 percent to 13.3 million dollars and full year net sales decreased 38.1 percent to 51.2 million dollars.
Deckers Brands’ performance across retail channels and markets
The company further said that wholesale net sales for the fourth quarter decreased 2.9 percent to 230.7 million dollars but increased 6.9 percent to 1.396 billion dollars for the full year. DTC net sales for the quarter decreased 7.9 percent to 144.2 million dollars, while DTC comparable sales decreased 3.7 percent. For fiscal year 2020, DTC net sales increased 3.1 percent to 736.9 million dollars and DTC comparable sales increased 5 percent over the same period last year.
The company’s domestic net sales for the fourth quarter decreased 8.4 percent to 230.8 million dollars, while for full fiscal year domestic net sales increased 9.6 percent to 1.402 billion dollars. International net sales for the quarter increased 1.4 percent to 144.1 million dollars, while full year international net sales decreased 1.5 percent to 731 million dollars.