Deckers Brands maintains growth, despite UGG sales drop

Deckers Brands has released its financial results for the first quarter ending 30 June 2022, revealing a 21.8% increase in net sales to £505 million ($614.5 million).

For H1 FY23, Deckers Brands also shared the following results:

• Wholesale net sales up 24.7% to £352.9 million ($429.4 million).
• DTC net sales up  15.4% to £152.1 million ($185.1 million).
• Gross margin was 48%, compared to 51.6% the previous year.
• Operating income was £46.2 million ($56.3 million).

By region, the group's domestic net sales increased by 14.4% to £316 million ($384.5 million) and international net sales increased by 36.4% to £188.9 million ($229.9 million).

Deckers Brands, designs, markets and distributes footwear and apparel brands globally and its portfolio includes UGG, HOKA, Teva, Sanuk and Koolaburra.

The group reported that UGG brand net sales decreased 2.4% to £170.8 million ($207.9 million), compared to £175 million ($213 million). However, HOKA brand net sales increased by 54.9% to £271 million ($330 million) and Teva brand net sales by 2% to £48.9 million ($59.6 million).

Looking ahead, Deckers Brands expects its full year sales to be in the range of £2.83 billion ($3.45 billion) to £2.87 billion ($3.50 billion).

Dave Powers, President and CEO at Deckers Brands, said: "Fiscal year 2023 is off to a solid start, with HOKA driving strong growth, propelling the brand to eclipse the billion-dollar milestone over the trailing twelve-month period.

"In addition, our board's recent approval of a significantly increased share repurchase authorisation shows a great deal of confidence in our long-term strategic plan and the opportunities that lie ahead."