Deckers lifts Q3 profit on Ugg growth
- Q3 net profit rises 11.2% to US$156.7m
- Net sales up 6.6% to $784.7m
- Driven by sales of Ugg/Other Brands
Ugg revenues rose 6.5% during the quarter
Ugg boot business Deckers Brands recorded a double-digit third quarter profit rise thanks to revenue boosts from Ugg and the company’s other brands.
Gross margin rose 180 basis points to 52.9% in the three months to 31 December, the US footwear and apparel company added.
Flagship brand Ugg posted a 6.5% revenue increase to $736m, but Teva was down 12.1% to $13.6m and Sanuk declined 7.9% to $20.5m, while Other Brands soared 96.5% to $14.6m.
Direct-to-consumer comparable sales rose 7.6% and retail revenues were up 8.3% to $192.7m, while e-commerce sales surged up 25.2% to $146.9m.
Domestic sales rose 3.1% to $526.3m, and international sales were up 14.6% to $258.4m.
“Our third-quarter performance represents an important inflection point in the evolution of the Ugg brand product line,” said Angel Martinez, Deckers president and CEO.
“Full-price selling of casual boots, weather boots and specialty classics exceeded expectations, and in some cases outpaced our inventory investments.”
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