Deckers Brands sees 'stellar quarter' with revenues exceeding £1 billion
Deckers Brands has reported successful Q3 financial results, with revenues driven up 13.3% by UGG and Hoka.
Deckers Brands, who also own Teva, Sanuk, and Koolabura, results for the quarter ending 31 December saw revenues rise to £1.1 billion ($1.346 billion), representing a 13.3% year-on-year increase.
Wholesale net sales were up by 8% to £529.5 million ($646.3 million), whilst direct-to-consumer (DTC) net sales increased 18.7% to $699.3 million compared to £572.9 million ($589.4 million) in the same period last year. Overall, the operating income was £297.19 million ($362.7 million).
Other Q3 financial data includes:
• UGG’s net sales decreased 1.6% to £762.35 million (30.4 million).
• HOKA’s net sales increased 90.8% to £288.5 million($352.1 million).
• Teva’s net sales increased 48.3% to £30.5 million ($30.5 million).
• Sanuk’s net sales decreased 7.4% to £4.6 million ($5.6 million).
• Other brands, primarily composed of Koolaburra’s net sales decreased 12.1% to £22 million ($26.9 million).
Dave Powers, President and Chief Executive Officer, commented: "Our brands delivered another stellar quarter, led by record results for both HOKA as well as our consolidated direct-to-consumer business.
"The consistent strength of Deckers results thus far in fiscal year 2023, despite macroeconomic and currency headwinds, are the result of our brand marketplace management actions and dedication to long-term strategic priorities. We believe UGG and HOKA are two of the healthiest, well-positioned brands in their respective markets, and with the strength of our operating model, Deckers is poised for continued success going forward."
The company's full fiscal year 2023 outlook is "subject to significant risks and uncertainties" that limit its ability to accurately forecast results, according to the business. Net sales are now expected to be in the range of $3.50 billion to $3.53 billion. Gross margin is expected to be approximately 50.5%.