Companies

Deckers posts strong second quarter

Oct 28, 2024 United States

The California-based footwear company posted another strong quarterly performance, with net sales up by 20.1% year-on-year, driven by continued demand for the Hoka and Ugg brands

In the three months ended on the 30^th of September, the company’s total net sales reached 1.09 billion US dollars, an increase of 20.1% or 20.4% on a constant currency basis over the same period of the last fiscal year. Domestic net sales were 853.9 million US dollars, up by 14.2% year-on-year, and international sales were 457.4 million US dollars, up by 33.0% year-on-year.

Stefano Caroti, the new President and Chief Executive Officer of Deckers Brands, highlighted the “outstanding” results of the Hoka and Ugg brands in this period. In the second quarter of fiscal 2025, Hoka’s net sales increased by 34.7% to 570.9 million US dollars and Ugg’s net sales increased by 13.0% to 689.9 million US dollars, on a comparable basis to the same period of the previous year.

Turning now to the rest of Deckers’ portfolio. Net sales of the Teva brand recovered in this second quarter, up by 2.3% to 22.0 million US dollars, as compared to a similar period last year. In contrast, net sales for the other brands (mainly consisting of Koolaburra) declined by 15.8% to 25.8 million US dollars and net sales for Sanuk declined by 47.6% to 2.8 million US dollars. However, Sanuk is no longer part of the company, as it was sold to Lolë Brands on the 15^thof August.

In the second quarter of the current fiscal year, the company’s gross margin improved to 55.9% from 53.4% in the same period of the prior year and operating income was 305.1 million US dollars, as compared to 224.6 million US dollars in the same period of fiscal 2024. In the end, Deckers Brands’ net income increased by 35.7% to 242.3 million US dollars from 178.5 million US dollars in the second quarter of fiscal 2024.

“As I step into the CEO role, I’m committed to building on our proven foundation to support growth, guided by our consumer-first mindset, brand-led philosophy, innovation-forward products, and globally driven focus. Our dedicated teams’ continued execution of Deckers’ long-term strategy has our company well-positioned to achieve an increased outlook for fiscal year 2025”, said Stefano Caroti.

For fiscal 2025, the company expects to achieve a net sales increase of approximately 12% over the prior year to 4.8 billion US dollars.

Image Credits: depop.com

United States Companies Deckers Footwear hoka Quarter Results Results Ugg