US: Deckers Q3 profit boosted by Ugg surge
- Q3 net profit increases 48% to US$62.5m
- Net sales up 49% to $414.4m
- Raises FY guidance but warns of costs hike
Footwear business Deckers Outdoor Corporation raised its full-year guidance after third quarter profit rose 49%, driven by the continued strength of the Ugg brand.
Gross margin was up 1.9% to 49%, but president, CEO and chair of the board Angel Martinez warned that raw materials costs were poised to go up in the near future.
Ugg was responsible for the lion’s share of the revenue growth, surging up 47.3% to $376.7m, while international sales more than doubled to $156.4m and domestic revenues rose 26% to $257.9m.
Deckers’ retail sales increased 72% to $34.7m, with same store sales up 15.4% and ecommerce revenues rising 18.3%.
Martinez said domestic demand for Ugg had been driven by the introduction of new styles and collections, including more men’s products.
He added: “At the same time, our international sales more than doubled, fuelled by the growth in wholesale unit volumes in the UK and Benelux, coupled with an increase in sales resulting from our conversion to wholesale operation in these regions.”
Deckers now predicts full-year revenues up 33% (previous guidance was up 26%) and earnings per diluted share to increase 22%, compared to 17% previously.
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