Hoka One One boosts Deckers Brands' Q3 sales and earnings
31 Jan 2020
Deckers Brands’ third quarter net sales increased 7.4 percent to 938.7 million dollars, while on a constant currency basis, net sales increased 8.4 percent. The company said in a statement that gross margin was 54.1 percent compared to 53.8 percent for the same period last year and diluted earnings per share were 7.14 dollars compared to the GAAP diluted earnings per share of 6.68 dollars and non-GAAP diluted earnings per share of 6.59 dollars for the same period last year.
“Our third quarter results were driven by three of our brands experiencing record levels of quarterly revenue, resulting in an updated outlook that reflects another year of strong top-line growth and earnings expansion,” said Dave Powers, President and Chief Executive Officer of Deckers Brands, adding, “Heading into the fourth quarter, our brands are intent on maintaining the momentum seen throughout this fiscal year as we are planning continued investment in consumer engagement opportunities and compelling product introductions.”
Deckers Brands’ Hoka One One sales improve 63.6 percent
The company added that UGG brand net sales for the third quarter increased 2.6 percent to 781.1 million dollars, while Hoka One One brand net sales increased 63.6 percent to 93.1 million dollars. Net sales of Teva brand decreased 25.1 percent to 17.2 million dollars and Sanuk brand net sales decreased 34.5 percent to 8.5 million dollars compared to the same period last year.
Wholesale net sales for the third quarter increased 8.9 percent to 525.1 million dollars, while DTC net sales increased 5.6 percent to 413.7 million dollars and DTC comparable sales increased 4.7 percent over the same period last year.
The company further said that domestic net sales for the quarter increased 12.7 percent to 645.7 million dollars and international net sales decreased 2.6 percent to 293.1 million dollars compared to the same period last year.
Deckers Brands reveals outlook for Q4 and full year
For the twelve month period ending March 31, 2020, the company said, net sales are now expected to be in the range of 2.150 billion dollars to 2.160 billion dollars, gross margin is now expected to be approximately 51.5 percent and diluted earnings per share now expected to be in the range of 9.40 dollars to 9.50 dollars.
For the three months ending March 31, 2020, the company expects net sales to be in the range of 392 million dollars to 402 million dollars and diluted earnings per share in the range of 35 cents to 45 cents.
Picture:Hoka One One website