Deckers Brands, the Hoka and Ugg parent, ended a successful fiscal year by reporting a 36 percent operating income increase in the final period to $144.3 million compared to $105.9 million. Gross margin expanded by 620 basis points to 56.2 percent.
Revenues increased by 21 percent to $959.8 million from $791.6 million for the period ended March 31. DTC sales rose by 21 percent to $415.2 million, and wholesale revenues moved up by the same percentage year-over-year to $544.6 million. Regionally, sales generated in the US improved by 19 percent to $647.7 million and rose by 25 percent everywhere else to $312.0 million. Hoka’s Q4 sales ran 34 percent higher to $533.0 million, as Ugg sales increased by 15 percent to $361.3 million. Elsewhere, Teva and Sanuk revenues fell by 16 percent and 39 percent, respectively, to $53.0 million and $6.5 million.
For FY24, Deckers’ operating income soared 42 percent to $927.5 million from $652.8 million as revenues jumped by 18 percent to $4.29 billion from $3.63 billion. Year-over-year net income improved by 49 percent to $747.9 million from $502.7 million as the annual gross margin gained 530 basis points to 55.6 percent. Annual US sales rose by nearly 17 percent to $2.86 billion and were up by 21 percent to $1.42 billion everywhere else. Hoka had the strongest brand sales growth in the group’s portfolio, rising by 28 percent to $1.81 billion. Ugg’s annual sales, meanwhile, improved by 16 percent year-over-year to $2.24 billion. On the downside, Teva brand sales declined 19 percent for the year to $148.5 million, and Sanuk brand sales were off by 33.0 percent to $25.4 million.
The group’s FY25 outlook calls for a total revenue expansion of 10 percent to $4.7 billion, an operating margin of about 19.5 percent, and a gross margin of approximately 53.5 percent.
“Deckers has grown revenue at 19 percent CAGR over the past four years, consecutively delivering a double-digit revenue increase each year, while at the same time more than tripling earnings per share,” CFO Steve Fasching said in a statement. “As we continue to build an exciting future for Deckers, we remain committed to making the necessary investments to maintain the momentum of our brands.”
| Deckers Brands - Income ($ thousand) | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| Three months ended March 31 | |||
| Net sales | 959,758 | 791,571 | 21.2% |
| Cost of sales | 420,282 | 395,403 | 6.3% |
| Gross profit | 539,476 | 396,168 | 36.2% |
| SG&A expenses | 395,214 | 290,249 | 36.2% |
| Income from operations | 144,262 | 105,919 | 36.2% |
| Total other income, net | -19,945 | -8,939 | -123.1% |
| Pre-tax | 164,207 | 114,858 | 43.0% |
| Tax | 36,662 | 23,071 | 58.9% |
| Net income | 127,545 | 91,787 | 39.0% |
| Total other comprehensive income, net of tax | -8,359 | 1,241 | – |
| Comprehensive income | 119,186 | 93,028 | 28.1% |
| Diluted EPS | 4.95 | 3.46 | 43.1% |
| Full year ended March 31 | |||
| Net sales | 4,287,763 | 3,627,286 | 18.2% |
| Cost of sales | 1,902,275 | 1,801,916 | 5.6% |
| Gross profit | 2,385,488 | 1,825,370 | 30.7% |
| SG&A expenses | 1,457,974 | 1,172,619 | 24.3% |
| Income from operations | 927,514 | 652,751 | 42.1% |
| Total other income, net | -51,427 | -13,331 | -285.8% |
| Pre-tax | 978,941 | 666,082 | 47.0% |
| Tax | 219,378 | 149,260 | 47.0% |
| Net income | 759,563 | 516,822 | 47.0% |
| Total other comprehensive income, net of tax | -11,698 | -14,080 | 16.9% |
| Comprehensive income | 747,865 | 502,742 | 48.8% |
| Diluted EPS | 29.16 | 19.37 | 50.5% |
| Source: Deckers Brands | |||
