US apparel and footwear group Deckers Brands has raised its guidance for full fiscal year 2020 on the back of record first-quarter sales.
For the three months ended 30 June, the maker of Ugg footwear reported a 10.5% rise in net sales to US$276.8m, up from $250.6m in the same period last year. On a constant currency basis, net sales increased by 11.6%.
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Domestic net sales for the first quarter rose by 18.1% to $167.3m, while international net sales edged up 0.6% to $109.5m.
Ugg brand net sales for the first quarter rose 1.5% to $138.5m, compared to $136.5m a year ago, while Teva brand revenues fell 4.3% to $38.3m. Meanwhile, net sales for the Sanuk brand decreased by 23.5% to $18.7m. Hoka One One sales, however, surged 69.2% to $79.5m.
Deckers narrowed its net loss in the period to $19.4m from $30.4m in the prior-year period. Gross margin widened to 47% from 45.9% for the same period last year.
“The Deckers organisation experienced a strong start to fiscal year 2020,” says CEO Dave Powers. “I am proud of the positive momentum that our portfolio of brands continues to build as we remain focused on the strategies that have proven successful in strengthening our operations over the past few years. The Deckers team continues to drive excitement behind innovative product introductions and remains disciplined in delivering top-tier levels of profitability. With the first quarter now behind us, we are firmly committed to our strategies and remain confident in our abilities to deliver on them.”
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By GlobalDataLooking ahead, Deckers expects net sales for the 12-month period ending 31 March 2020 to be in the range of $2.10bn to $2.13bn, up from the $2.10bn to $2.12bn forecast in May. Gross margin is expected to be about 50.5%, while non-GAAP diluted earnings per share are forecaste in the range of $8.40 to $8.60.
