Ugg owner hits ‘record’ revenues of £900 million for Q2

Deckers Brands has announced that revenues for the second fiscal quarter, ending 30 September 2023, increased by 25% to a record-breaking £900 million ($1.092 billion).

The company, whose portfolio includes Hoka, Ugg, Teva, Sanuk, and Koolabura, reported net sales increased by 24.7% to £900 million ($1.092 billion) compared to £721.87 million ($875.6 million) the year prior.

Direct-to-consumer (DTC) net sales increased 38.8% to £273.4 million ($331.7 million) and wholesale net sales increased 19.4% to £626.7 million ($760.2 million).

US sales increased by 21.1% to £ 616.67 million ($748 million), whereas international sales increased by 33.3% to £283.5 million ($343.9 million). Gross margin stood at 53.4% compared to 48.2% and operating income was £185.1 million ($224.6 million). Diluted earnings per share was £5.62 ($6.82) compared to £3.13 ($3.80).

Brand revenue breakdowns were as follows:

• Ugg brand net sales increased by 28.1% to £503.3 million ($610.5 million)
• Hoka brand net sales increased by 27.3% to £349.5 million ($424 million)
• Teva brand net sales decreased by 28.4% to £17.7 million ($21.5 million)
• Sanuk brand net sales decreased by 28.5% to £4.45 million ($5.4 million)
• Other brands, primarily composed of Koolaburra, net sales increased by 7.2% to £25.2 million ($30.6 million)

Dave Powers, President and Chief Executive Officer of Decker Brand, commented: "The strength of demand for our Hoka and Ugg brands continued to drive exceptional performance, producing record revenue and earnings for Deckers in both the second quarter and first half of fiscal year 2024.

"Our team's ability to deliver compelling products that create emotional connections with consumers through engaging marketing campaigns differentiates our brands in a competitive marketplace. This, paired with our strategic approach to marketplace management, led by our DTC channel, remains paramount to the success of our brands and Company. We are focused on maintaining the integrity of our healthy brands to deliver the results detailed in our increased outlook while remaining aligned with long-term objectives."

Looking ahead to the full fiscal year 2024, ending 31 March 2024, the company now expects the following results:

• Net sales are now expected to be approximately £3.32 billion ($4.025 billion)
• Gross margin is now expected to be in the range of 52.5% to 53%
• SG&A expenses as a percentage of net sales are now expected to be in the range of 34% to 34.5%
• Operating margin is now expected to be approximately 18.5%
•  Diluted earnings per share are now expected to be in the range of £18.88 ($22.90) to £19.17 ($23.25)