Companies

Deckers off to a strong start

Jul 31, 2024 United States

The US-based company has reported a strong start to the current year, with first quarter net sales up by 22.1% year-over-year. Demand for Hoka and Ugg brands continues to drive growth

“As this is my last quarter to report as CEO, I am pleased to share these strong results to kick-off fiscal year 2025. Hoka and Ugg continue to drive robust full-price demand in the global marketplace by delivering compelling products that consumers love. Deckers has an exciting future ahead as Stefano transitions into his new role as CEO next week”, commented Dave Powers, President and Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2025, which ended on the 30^th of June, Deckers’ net sales reached 825.3 million US dollars, an increase of 22.1% or 23.0% on a constant currency basis, as compared to the same period of last fiscal year. Double-digit growth across all channels and regions (domestic and international levels) underpinned this performance.

As in the prior year, Hoka and Ugg continue to drive the company’s growth. In the first quarter of the year, Hoka’s net sales rose by 29.7% to 545.2 million US dollars and Ugg’s net sales rose by 14.0% to 223.0 million US dollars, on a comparable basis to the first quarter of fiscal 2024. Other brands, primarily composed of Koolaburra, net sales also increased by 123.5% year-on-year to 4.0 million US dollars in this period.

Within the Deckers portfolio, only the Teva and Sanuk brands are underperforming. Teva’s first quarter net sales decreased by 4.3% to 46.3 million US dollars and Sanuk’s net sales decreased by 28.4% to 5.9 million US dollars, on a comparable basis to the same period of last fiscal year.

In the first quarter of the year, the company’s gross margin improved to 56.9% from 51.3% in a similar period of the previous year and operating income increased to 132.8 million US dollars from 70.7 million US dollars.

In the three months to the end of June, Deckers recorded diluted earnings per share of 4.52 US dollars, as compared to 2.41 US dollars in the first quarter of last fiscal year.

Full Year Outlook

“Fiscal year 2025 is off to a great start, with Hoka and Ugg delivering fantastic first quarter results that have contributed to our increased outlook for the full fiscal year. I’m excited by the opportunity to now lead Deckers and its iconic brands, with the support of our talented teams that remain focused on the long-term opportunities ahead for this great company”, commented Stefano Caroti, Chief Commercial Officer and incoming President and Chief Executive Officer.

For the twelve months ending in March 2025, Deckers now expects net sales to increase approximately by 10% over the prior year to 4.7 billion US dollars and diluted earnings per share in the range of 29.75 to 30.65 US dollars.

Image Credits: ugg.com

United States Companies Deckers hoka Quarter Results Results Ugg