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Deckers Brands reports increase in Q4 net sales and earnings

By Prachi Singh

20 May 2022

Business

Image: Patrick Chaves for Hoka One One

Deckers Brands reported net sales increase of 31.2 percent to 736 million dollars for the fourth quarter. On a constant currency basis, net sales increased 31.7 percent.

The company’s full year net sales increased 23.8 percent to 3.150 billion dollars, while on a constant currency basis, net sales increased 23.2 percent..

"Fiscal year 2022 was another record year for Deckers, as we delivered both revenue and earnings per share growth above twenty percent," said Dave Powers, the company’s president and chief executive officer.

Highlights of Deckers Brands Q4 performance

The company’s wholesale net sales increased 37.6 percent to 448.8 million dollars in the fourth quarter. Direct-to-consumer (DTC) net sales increased 22.2 percent to 287.2 million dollars, while comparable DTC net sales increased 19.3 percent.

Domestic net sales increased 37.4 percent to 521 million dollars and international net sales increased 18.2 percent to 215.1 million dollars compared.

Gross margin for the quarter was 48.7 percent compared to 53.2 percent and diluted earnings per share were 2.51 dollars compared to 1.18 dollars.

The company’s UGG brand net sales increased 24.7 percent to 374.6 million dollars, Hoka brand net sales increased 59.7 percent to 283.5 million dollars, Teva brand net sales decreased 8.8 percent to 54.8 million dollars, Sanuk brand net sales decreased 1.7 percent to 11.9 million dollars and other brands, primarily composed of Koolaburra net sales increased 2.4 percent to 11.2 million dollars.

Full year financial review of Deckers Brands results

Full year wholesale net sales increased 31 percent to 1.937 billion dollars and DTC net sales increased 13.8 percent to 1.214 billion dollars.

Domestic net sales for the year increased 23.1 percent to 2.168 billion dollars and international net sales increased 25.3 percent to 982.5 million dollars.

Gross margin was 51 percent compared to 54 percent, while diluted earnings per share were 16.26 dollars compared to 13.47 dollars.

UGG brand net sales increased 15.4 percent to 1.982 billion dollars, Hoka brand net sales increased 56.1 percent to 891.6 million dollars, Teva brand net sales increased 17.3 percent to 162.7 million dollars, Sanuk brand net sales increased 3 percent to 43.1 million dollars and other brands net sales decreased 7.5 percent to 70.9 million dollars.

For the fiscal year 2023, the company said, net sales are expected to be in the range of 3.45 billion dollars to 3.50 billion dollars, gross margin is expected to be approximately 51.5 percent, operating margin to be in the range of 17.5 percent to 18 percent and diluted earnings per share in the range of 17.40 dollars to 18.25 dollars.