US footwear group Deckers Brands has again upped its guidance for fiscal year 2020 amid record net sales in the third quarter, driven by a 63.6% surge in revenue at its Hoka One One brand.

For the three months ended 31 December, the maker of Ugg footwear reported a 2.6% rise in net income to US$201.6m, up from $196.4m a year earlier. Gross margin expanded to 54.1% from 53.8% in last year’s quarter.

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Deckers also booked a 7.4% rise in net sales to a record $938.7m, up from $873.8m last time. On a constant currency basis, net sales were up by 8.4%.

Ugg brand net sales for the third quarter rose 2.6% to $781.1m, compared to $761m for the same period last year. Hoka One One sales surged 63.6% to $93.1m from $56.9m a year ago. Teva brand revenues, however, fell 25.1% to $17.2m from $22.9m last time, while net sales for the Sanuk brand tumbled 34.5% to $8.5m. 

Domestic net sales increased by 12.7% to $645.7m, while international net sales declined 2.6% to $293.1m.

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“Our third-quarter results were driven by three of our brands experiencing record levels of quarterly revenue, resulting in an updated outlook that reflects another year of strong top-line growth and earnings expansion,” says CEO Dave Powers. “Heading into the fourth quarter, our brands are intent on maintaining the momentum seen throughout this fiscal year as we are planning continued investment in consumer engagement opportunities and compelling product introductions.”

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Deckers has now raised its outlook for the full fiscal year ending 31 March, with net sales expected to be in the range of $2.15bn-$2.16bn and diluted earnings per share between $9.40 and $9.50. Gross margin is forecast at about 51.5%.

The company also provided guidance for the fourth quarter, noting sales are expected to be in the range of $392m-$402m and diluted earnings per share between $0.35 and $0.45.