US apparel and footwear group Deckers Brands passed the US$2bn revenue mark for the first time in fiscal 2019, thanks in part to surging sales of its Hoka One One running shoes brand.
For the three months ended 31 March, the maker of Ugg footwear reported net income of $24m, compared to $20.6m a year earlier. Gross margin in the period widened to 51.6% from 48% last year.
Net sales, meanwhile, slipped 1.6% to $394.1m, compared to $400.7m for the same period last year. On a constant currency basis, net sales decreased by 1.3%.
Domestic net sales for the fourth quarter increased by 1.2% to $252m, while international net sales fell 6.3% to $142.1m.
Ugg brand net sales declined 7.2% in the period to $239m, compared to $257.5m a year ago, while Teva brand net revenues fell 3.8% to $52.9m. Meanwhile, net sales for the Sanuk brand decreased by 11.7% to $31.5m. Hoka One One sales, however, surged 33.2% to $67.1m.
For the full year, net income more than doubled to $264.3m, up from $114.4m in fiscal 2018, while gross margin widened to 51.5% from 48.9%. Net sales rose by 6.2% to $2.02bn, compared to $1.9bn the year before. On a constant currency basis, net sales increased by 5.8%.
Meanwhile, domestic net sales climbed 8.9% to $1.28bn in fiscal 2019, while international net sales increased 1.8% to $742.1m.
“Fiscal 2019 represented another successful year for the Deckers organisation, surpassing the milestone of $2bn in revenue and doing so with exceptional levels of profitability, while achieving our long-range targets a year ahead of schedule,” said CEO Dave Powers.
“As we move forward in our strategic plan, we will maintain focus on positioning our brands for the future by enhancing our relationship with consumers, continuing to deliver innovative product solutions, and building brand awareness and strength across global markets.”
Looking ahead, the company expects net sales to be in the range of $2.10bn to $2.12bn in fiscal 2020, while gross margin is seen in the range of 50% to 50.5%. Non-GAAP earnings per share are forecast in the range of $8.20 to $8.40.