Deckers Brands Q2 sales increase by 20 percent

Second quarter net sales at Deckers Brands increased 20.1 percent to 1.311 billion dollars. On a constant currency basis, net sales increased 20.4 percent.

Gross margin for the quarter was 55.9 percent compared to 53.4 percent, operating income rose to 305.1 million dollars and diluted earnings per share to 1.59 dollars.

“Hoka and UGG produced outstanding second quarter results driven by strong consumer demand for our innovative and unique products,” said Stefano Caroti, the company’s president and CEO in a statement.

The company’s direct-to-consumer (DTC) net sales increased 19.9 percent to 397.7 million dollars, while DTC comparable net sales increased 17 percent. Wholesale net sales increased 20.2 percent to 913.7 million dollars.

Domestic net sales increased 14.2 percent to 853.9 million dollars, while international net sales increased 33 percent to 457.4 million dollars.

Hoka brand net sales increased 34.7 percent to 570.9 million dollars, UGG brand net sales by 13 percent to 689.9 million dollars, Teva brand net sales by 2.3 percent to 22 million dollars, while Sanuk brand decreased 47.6 percent to 2.8 million dollars and other brands, primarily composed of Koolaburra decreased 15.8 percent to 25.8 million dollars.

For the fiscal year ahead, the company expects net sales to increase approximately 12 percent to 4.8 billion dollars, gross margin to be in the range of 55 percent to 55.5 percent, operating margin in the range of 20 percent to 20.5 percent and diluted earnings per share in the range of 5.15 dollars to 5.25 dollars.