• Q3 net profit down 23% to US$33.1m
  • Net sales edge up 2.7% to $386.7m
  • Ugg sales showing “great resiliency”

Footwear specialist Deckers Outdoor Corporation cited increased expenses for its falling third quarter profit, which came despite rising sales and margins.

The owner of the Ugg brand said gross margin improved by 90 basis points to 43.2% in the three months to 30 September.

All of its principal brands posted revenue increases: Ugg was up 1.3% to $337m, Teva edged up 0.6% to $18m and Sanuk rose 0.5% to $18.4m.

Meanwhile, retail sales surged up 34.5% to $52.6m, with comparable store sales rising 1.9%, and e-commerce revenues were up 12.2% to $14.9m.

Deckers’ domestic US sales were up slightly, rising 1.4% to $238.8m, while international revenues increased 10.3% to $147.9m.

“The Ugg brand has shown great resiliency over the past year, driven by innovative new products and advancements in our marketing, merchandising and selling strategies,” said Angel Martinez, president, CEO and chair of the board of directors.

“The fall selling season started well, led by demand for our expanded collection of casual shoes and boots.

“As we move further into the back half of the year, sell-through of our core classic and slipper collections is accelerating.”

Deckers now expects full-year revenues to rise 8% and earnings per diluted share 10%, up from its previous forecast of 8%.