Deckers Brands reports 14.5 percent jump in FY15 net sales

For the fourth quarter of fiscal 2015, Deckers Brands net sales increased 15.6 percent to a 340.6 million dollars compared to 294.7 million dollars for the same period last year. On a constant currency basis, net sales increased 19.1 percent. For the fiscal year 2015, net sales increased 14.5 percent to 1.817 billion dollars compared to 1.588 billion dollars last year. On a constant currency basis, net sales increased 15.6 percent.

Gross margin was 44.7 percent compared to 48.9 percent for the same period last year. Diluted earnings per share were 0.04 dollars compared to a diluted loss per share of 0.08 dollars for the same period last year. Gross margin for the entire year improved 60 basis points to 48.3percent compared to 47.7percent last year. Diluted earnings per share increased 14.5 percent to 4.66 dollars compared to 4.07 dollars last year.

"We ended fiscal 2015 with solid momentum highlighted by approximately 16 percent revenue growth in the fourth quarter despite unfavorable foreign exchange rate headwinds,” commented Angel Martinez, Chief Executive Officer and Chair of the Board of Directors.

UGG brand net sales for the fourth quarter increased 9.7 percent to 216.8 million dollars compared to 197.6 million dollars for the same period last year. The increase in sales was driven by an increase in global wholesale and distributor sales, higher global E-commerce sales, sales contributions from new worldwide retail store openings, partially offset by a decrease in same store sales. For fiscal 2015, UGG brand sales increased 12.6 percent to 1.49 billion dollars. Teva brand net sales for the fourth quarter increased 13.4 percent to 53.1 million dollars compared to 46.8 million dollars for the same period last year. The increase in sales was driven by an increase in international wholesale and distributor sales, partially offset by a decrease in domestic wholesale sales. For fiscal 2015, Teva brand sales increased 13.5 percent to 126.7 million dollars.

Sanuk brand net sales for the fourth quarter increased 27.9 percent to 39.2 million dollars compared to 30.7 million dollars for the same period last year. The increase in sales was driven by an increase in domestic wholesale sales and higher international distributor sales. For fiscal 2015, Sanuk brand sales increased 13.1 percent to 114.7 million dollars. Combined net sales of the company's other brands increased 60.9 percent to 31.5 million dollars compared to 19.6 million dollars for the same period last year. The increase was primarily attributable to an 8.8 million dollars increase in sales for the Hoka One One brand compared to the same period last year. For fiscal 2015, combined net sales of the company's other brands increased 69.5 percent to 82.4 million dollars.

Wholesale and distributor sales for the fourth quarter increased 16.6 percent to 205.1 million dollars compared to 176 million dollars for the same period last year. The increase in sales was driven by an increase in both domestic wholesale sales and international wholesale and distributor sales. For fiscal 2015, wholesale and distributor sales increased 12.9 percent to 1.2 billion dollars. Direct-to-consumer sales for the fourth quarter increased 14.1 percent to 135.5 million dollars compared to 118.7 million dollars for the same period last year. Direct-to-Consumer comparable sales for the fourth quarter, which include worldwide comparable retail store sales and worldwide comparable E-Commerce sales, increased 4.7 percent over the same period last year. For fiscal 2015, direct-to-consumer sales increased 17.6 percent and direct-to-consumer comparable sales increased 7.8 percent.

For the fourth quarter, sales for the global retail store business increased 7.7 percent. The increase was driven by 30 new stores opened after March 31, 2014, partially offset by a same store sales decrease of 6.5 percent for the thirteen weeks ended March 29, 2015. For fiscal 2015, global retail store sales increased 12 percent. For the fourth quarter, sales for the global E-commerce business increased 27.4 percent. The increase was driven primarily by an increase in global UGG brand sales. For fiscal 2015, global E-commerce sales increased 28.4 percent.

Domestic sales for the fourth quarter increased 9.8 percent. For fiscal 2015, domestic sales increased 10.2 percent. International sales for the fourth quarter increased 27.5 percent. In constant currency sales increased 38.3 percent. For fiscal 2015, international sales increased 23 percent and in constant currency sales increased 26.6 percent.

For the twelve month period ending March 31, 2016, the company expects fiscal 2016 constant currency revenues to be approximately 2.01 billion dollars, reflecting a 10.5 percent increase over the twelve month period ended March 31, 2015. On a reported basis, revenues are expected to be 1.96 billion dollars, or an increase of 8 percent. The company expects fiscal 2016 diluted earnings per share to be approximately 5.60 dollars on a constant currency basis, reflecting an increase of 20 percent over the twelve month period ended March 31, 2015. On a reported basis, earnings per share are expected to be 5.09 dollars, or an increase of 9 percent.

The company expects first quarter fiscal 2016 constant currency revenues to be up slightly over the same period last year and flat on a reported basis. Diluted loss per share is expected to be approximately 1.52 dollars on both a constant currency and reported basis compared to a diluted loss per share of 1.07 dollars for the same period last year.