• Q2 profit falls 10.7% to $36.4m
  • Sales up 1.4% to record $486.9m
  • Stefano Caroti named omni-channel president
Deckers Brands saw its profit decline despite record sales

Deckers Brands saw its profit decline despite record sales

Apparel and footwear group Deckers Brands has said it is “pleased” with its second-quarter performance despite posting a double-digit decline in second-quarter net profit, weighed down by foreign exchange headwinds. 

Net income amounted to US$36.4m for the three months to 30 September, compared to $40.7m in the same period of the prior year. Net sales increased 1.4% to a record $486.9m from $480.3m last year. 

By brand, Ugg sales edged up 0.9% to $421.1m, Teva declined 13.6% to $17.9m, Sanuk fell 9% to $17.3m, while combined sales of the company's other brands jumped 30.5% to $30.6m.

Wholesale and distributor sales climbed 1.2% to $400.3m, and direct-to-consumer sales increased 2.1% to $86.6m. 

However, gross margin slipped to 44% from 46.6% a year ago, due to foreign exchange headwinds caused by the strengthening of the US dollar versus the British pound, euro and yen.

Nonetheless CEO Angel Martinez said: "We delivered record second quarter revenue and continue to track towards achieving our financial objectives for the fiscal year.” 

"I'm very pleased with our current performance which wouldn't have been possible without the strategic investments we've made in key areas of the business over the past several years.”

The group said it expects full-year earnings per share to reach $5.18, up 11.2% year-on-year, revenues to total $1.96bn, up 8% from last year, and gross margin to fall 30 basis points year-on-year to 48%. 

Separately, Deckers Brands has appointed Stefano Caroti as omni-channel president, effective 2 November. Caroti, who most recently served as chief commercial officer at German sportswear brand Puma, has previously held positions at sporting goods firm Nike, including vice president and general manager of EMEA commerce.