Deckers Brands Q2 earnings up, net sale increase 4 percent

Deckers Brands for its second quarter ended September 30, 2018 posted net sales increase of 4 percent to 501.9 million dollars. On a constant currency basis, net sales increased 3.3 percent. The company said, diluted earnings per share rose to 2.48 dollars compared to 1.54 dollars for the same period last year, while non-GAAP diluted earnings per share increased to 2.38 dollars compared to 1.54 dollars last year.

"The continued profitability gains in the UGG brand and top-line growth within the Hoka One One brand drove second quarter results, as both sales and earnings per share exceeded expectations," said Dave Powers, the company’s President and Chief Executive Officer in a statement.

Review of Decker’s Brands’ second quarter results

Gross margin for the second quarter was 50.2 percent compared to 46.7 percent for the same period last year. Operating income was 90.4 million dollars compared to 67.4 million dollars for the same period last year, while non-GAAP operating income was 90.7 million dollars compared to 67.8 million dollars last year.

UGG brand net sales, the company added, decreased 1 percent to 396.3 million dollars but Hoka One One brand net sales for the second quarter increased 28.4 percent to 52.1 million dollars. Teva brand net sales increased 0.6 percent to 21.5 million dollars, while Sanuk brand net sales decreased 9.4 percent to 13.8 million dollars.

Wholesale net sales increased 4.3 percent to 408 million dollars, and DTC net sales increased 2.8 percent to 93.9 million dollars, while DTC comparable sales for the second quarter increased 4.8 percent over the same period last year. Domestic net sales increased 2.9 percent to 311.6 million dollars and international net sales increased 5.9 percent to 190.3 million dollars.

Deckers Brands reveals outlook for Q3 and full year

For the full year, the company said, net sales are now expected to be in the range of 1.935 billion dollars to 1.960 billion dollars, gross margin is now expected to be approximately 50 percent and non-GAAP diluted earnings per share to be in the range of 6.65 dollars to 6.85 dollars.

Net sales for the third quarter are expected to be in the range of 805 million dollars to 825 million dollars and non-GAAP diluted earnings per share to be in the range of 5.10 dollars to 5.25 dollars.

Picture:Deckers Brands website