Deckers Brands reported a 35.3% growth in direct-to-consumer (DTC) net sales, reaching $250.4m during the three-month period that concluded on 30 June (Q1 fiscal 2024).
The company's running brand Hoka was cited as the main reason for its growth with the brand having a 27.4% surge in net sales, reaching $420.5m.
The company's other brands did not fare so well in the first quarter. Its Teva brand had a net sales decline of 18.8% to $48.4m, Ugg’s sales decreased by 6% to $195m. Sanuk saw a 32.3% drop in net sales to $9.6m and Koolaburra, saw net sales decrease 33.9% in the quarter to $1.8m, compared to $2.7m in Q1 2022.
"Deckers begins fiscal year 2024 in a position of strength, accelerating towards our outlook for the full year, which has been raised to reflect Hoka brand momentum," said president and CEO Dave Powers.
Deckers Brands Q1 results
- The company’s wholesale net sales were $425.4m
- Operating income was $70.7m compared to $56.3m
- Net income grew to $63.6m, compared to $44.8m the year before
- Gross margin was 51.3% compared to 48%
- Domestic net sales increased 9.1% to $419m
- International net sales increased 11.4% to $256.3m.
Powers explained Deckers Brands remains “dedicated to delivering results” by staying true to their strategic emphasis on expanding direct-to-consumer channels and strengthening their presence in international markets."
Looking forward to the upcoming year, the company anticipates net sales to reach $3.980bn. The expected gross margin remains around 52%, while the projected operating margin remains at 18%. Additionally, diluted earnings per share are estimated to fall within the range of $21.75 to $22.25.
Powers added: “Combined with our disciplined brand marketplace management and nimble operating model, this approach underscores our confidence to achieve our increased full-year outlook and drive long-term success for our brands.”
