According to its results report for for the quarter, Deckers Brands enjoyed an increase in net sales of more than 17 percent in Q3 2024.

Deckers Brands is reporting that net sales increased 17.1 percent in the third quarter of 2024 to $1.83 billion, compared with $1.56 billion in the prior-year Q3 period. On a constant-currency basis, net sales increased 16.6 percent. 

  • Ugg brand net sales increased 16.1 percent year-over-year (y/y) to $1.24 billion.
  • Hoka brand net sales increased 23.7 percent y/y to $530.9 million.
  • Teva brand net sales decreased 6.0 percent y/y to $24.1 million.
  • Other brands’ net sales decreased 16.6 percent y/y to $28.0 million.

DTC up

Direct-to-Consumer (DTC) net sales increased 17.9 percent to $1.01 billion compared with $858.1 million in the prior-year quarter. DTC comparable net sales increased 18.3 percent.

Wholesale net sales increased 16.2 percent to $815.8 million in fiscal Q3, compared with $702.2 million in the prior-year Q3 period.

Domestic net sales increased 11.5 percent to $1.17 billion compared with $1.05 billion in the year-ago period. International net sales increased 28.5 percent to $657.9 million compared with $511.9 million in the prior-year Q3 period.

Income statement summary

  • Gross margin was 60.3 percent of net sales in the fiscal third quarter, compared with 58.7 percent in the prior-year Q3 period.
  • Selling, general and administrative (SG&A) expenses were $535.3 million in the quarter, compared with $428.7 million in fiscal Q3 last year.
  • Operating income was $567.3 million in Q3, compared with $487.9 million in the year-ago Q3 period.
  • Diluted earnings per share were $3.00 in the third quarter, compared with $2.52 in the year-ago period.

Stock split

During the second fiscal quarter, the company completed a six-for-one forward stock split of its common stock, and the company has adjusted the share, per share and resulting financial amounts in its press release accordingly.

“Deckers delivered exceptional results in the third quarter, achieving record quarterly sales, gross margin, and earnings,” said Stefano Caroti, president and CEO of Deckers Brands. Ugg kept gaining worldwide popularity, with its well-known products seeing strong demand at full price in all regions. At the same time, Hoka had successful but consistent results, continuing to grow through new performance products.

“Our sales outlook for the year is for 15 percent growth, which would be our fifth consecutive year of mid-teens or higher growth, complemented by our commitment to maintain best-in-class operating margins,” Caroti continued.

Capital allocation

During the third fiscal quarter, the company repurchased about 275,000 shares of common stock for a total of $44.7 million at a weighted average price of $162.85.

As of Dec. 31, 2014, the company had approximately $640.7 million remaining under its share repurchase authorization.

Full-year 2025 outlook

Deckers is expecting net sales to increase by about 15 percent to $4.9 billion, with a gross margin at or slightly better than 57 percent and an operating margin of about 22 percent. Diluted earnings per share should range from $5.75 to $5.80.

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