Deckers Brands reported a first-quarter revenue increase of 78.2 percent to $504.7 million, leading to net earnings of $51.5 million against a loss of $6.9 million for the same period of last year. The company has raised its outlook and now expects net earnings of around $415 million for the full financial year ending in March 2022.
The first-quarter sales growth was driven by a 95.5 percent increase in Hoka One One brand sales to $213.1 million compared to $109.0 million for the same period last year. Slipping just behind Hoka for the first time, Ugg’s quarterly sales increased by 70.8 percent to $213 million compared to $124.7 million for the same period last year. The company also reported a 65.9 percent increase in Teva brand sales to $58.5 million compared to $35.2 million, while Sanuk’s sales for the quarter increased 13.7 percent to $15 million as compared to $13.2 million for the same period last year. Koolaburra and other brands saw sales rising by 435.9 percent to $5 million compared to $0.9 million for the same period last year.
“Our portfolio of brands delivered a strong start to fiscal 2022, which propelled Deckers to its most profitable first quarter ever. The growing influence of Hoka, increasing year-round appeal of Ugg, and the continuing strength of Teva are driving progress across strategic priorities and delivering a more balanced business,” said Dave Powers, the company’s president and CEO, in a statement.
The company’s wholesale revenues increased by 140.2 percent to $344.3 million compared to $143.3 million, while direct-to-consumer (DTC) sales went up by 14.7 percent to $160.4 million compared to $139.8 million for the same period last year.
Deckers Brands said domestic sales for the quarter were up by 82.3 percent to $336.1 million. International sales rose by 70.5 percent to $168.6 million.
During the first quarter, the company repurchased around 249,000 shares of its common stock for a total of $82.2 million at an average price of $329.55. As of June 30, 2021, the company had $728.5 million remaining under its stock repurchase authorization.
For its 2022 fiscal year, the company said, net sales are now expected to be in the range of $3.010 billion to $3.060 billion. The gross margin is projected to be slightly below 53 percent, while the operating margin is still expected to be in the range of 17.5 percent to 18 percent.
