"Our portfolio of brands delivered Deckers' largest quarter in history, with balanced growth among our direct-to-consumer and wholesale channels and across multiple geographies. We believe HOKA and UGG are two of the strongest brands in the footwear industry, which are complimented by our strong operating model and fortified balance sheet. While we have continued to experience unprecedented demand for our brands, we are still navigating a challenging supply chain and pandemic environment. Even with these headwinds, I have great confidence in our organization and its ability to deliver another impressive year while positioning the company for long-term success", commented Dave Powers, President and Chief Executive Officer.

Third Quarter Results

In the third quarter of fiscal 2022, Deckers’ net sales increased by 10.2%, reaching 1.19 billion US dollars, on a comparable basis to the same period last year. On a constant currency basis, net sales increased by 9.7%.

Wholesale revenue in the third quarter of the current year grew by 7.3%, totalling 598.4 million US dollars, as compared to 557.9 million euros in similar of the prior year. Direct-to-Consumer (DTC) net sales rose by 13.4% in this period,  amounting to 589.4 million US dollars, as compared to 519.9 million euros in the third quarter of the prior year.

In the three-months period ended on the 31^st of December, domestic net sales increased by 3.3%, totalling 796.1 US dollars, on a comparable basis to net sales of 770.5 million US dollars in the same period of last year. International net sales grew by 27.5% in the same period, reaching 391.6 million US dollars, on a comparable basis to 307.2 million US dollars the third quarter of fiscal 2021.

Gross margin corresponded to 52.3% in the third quarter of 2021, as compared to gross margin of 57.0% in the same period last year. The company informed that higher transport costs and supply chain bottlenecks impacted negatively its margins.

Brands Summary

In the third quarter of fiscal 2022, UGG net sales increased by 7.9%, reaching 945.9 million US dollars, as compared to the same period last year. Hoka net sales amounted to 184.6 million US dollars, which reflects  growth of 30.3%, as compared to the third quarter of fiscal 2021. Teva net sales rose by 31.4% in the third quarter of fiscal 2021, reaching 20.6 million US dollars, as compared to similar period last year.

Sanuka net sales, in turn, decreased in the third quarter of 2022, totalling 6.1 million US dollars, as compared to the same quarter of 2020. Other brands net sales, primarily composed of Koolaburra,  also experienced a decline in the third quarter by 16.6% to 30.6 million US dollars, as compared to the same period last year.

Outlook for Fiscal 2022

Deckers has slightly widened the lower end of its guidance for the year ending on the 31^st of March 2022. The company is now expecting net sales to be in the range of 3.03 billion US dollars and 3.06 billion US dollars.