"Fiscal year 2020 performance was driven by the strength of our brand portfolio, fuelled by targeted investments in our key initiatives, coupled with disciplined financial management", commented Dave Powers, President and Chief Executive Officer, adding: "We expect fiscal year 2021 results to be impacted depending on the duration and severity of the COVID-19 pandemic, but our in-demand brands, omni-channel capabilities, and healthy balance sheet position us well to weather this challenging environment."

Fourth Quarter Review

In the last quarter of the financial year ended on the 31^st of March, net sales decreased by 4.9% to 374.9 million US dollars compared to 394.1 million US dollars for similar period last year. On a constant currency basis, net sales decreased 4.5%. Gross margin was 51.5% compared to 51.6% for the same period last year. Operating income was 16.7 million US dollars compared to GAAP operating income of 31.6 million for the same period last year. Diluted earnings per share was 0.57 US dollars compared to GAAP diluted earnings per share of 0.82 US dollars for the same period last year.

Full Year Review

Net sales increased 5.6% to 2.133 billion compared to 2.020 billion for the same period last year. On a constant currency basis, net sales increased 6.5%. Gross margin was 51.8% compared to 51.5% for the same period last year. Operating income was 338.1 million compared to GAAP operating income of 327.3 million US dollars for the same period last year. Income tax expense was 64.7 million US dollars compared to GAAP. Diluted earnings per share was 9.62 compared to GAAP.

Brand Summary

UGG brand net sales for the fourth quarter decreased by 17.9% to 196.3 million US dollars compared to 239.0 million US dollars for the same period last year. For fiscal year 2020, net sales decreased by 0.8% to 1.521 billion US dollars. HOKA ONE ONE brand net sales for the fourth quarter increased by 51.8% to 101.9 million US dollars compared to 67.1 million US dollars for the same period last year. For fiscal year 2020, net sales increased by 58.0% to 352.6 million US dollars. Teva brand net sales for the fourth quarter increased by 12.5% to 59.6 million US dollars compared to 52.9 million US dollars for the same period last year. For fiscal year 2020, net sales increased by 0.4% to 138.0 million US dollars. Sanuk brand net sales for the fourth quarter decreased 57.8% to 13.3 million US dollars compared to 31.5 million US dollars for the same period last year. For fiscal year 2020, net sales decreased 38.1% to 51.2 million US dollars.

Channel Summary

Wholesale net sales for the fourth quarter decreased by 2.9% to 230.7 million US dollars compared to 237.5 million US dollars for the same period last year. For fiscal year 2020, wholesale net sales increased 6.9% to 1.396 billion US dollars. DTC net sales for the fourth quarter decreased by 7.9% to 144.2 million US dollars compared to 156.6 million US dollars for the same period last year. DTC comparable sales in the fourth quarter decreased 3.7% versus the prior year, which excludes the final two weeks of retail store sales due to COVID-19 impacts. For fiscal year 2020, DTC net sales increased 3.1% to 736.9 million US dollars and DTC comparable sales increased 5.0% over the same period last year.

Geographic Summary

Domestic net sales for the fourth quarter decreased 8.4% to 230.8 million US dollars compared to 252.0 million US dollars for the same period last year. For fiscal year 2020, domestic net sales increased 9.6% to 1.402 billion US dollars. International net sales for the fourth quarter increased 1.4% to 144.1 million US dollars compared to 142.1 million US dollars for the same period last year. For fiscal year 2020, international net sales decreased 1.5% to 731.0 million US dollars.