Deckers Brands posts 15% sales increase

By

Robin Driver

Published
Oct 30, 2020

Goleta, California-based footwear, apparel and accessories group Deckers Brands announced a 15.0% rise in second-quarter sales on Thursday, as the Hoka One One brand continued to see strong growth in spite of the Covid-19 pandemic.

 
For the second quarter ended September 30, 2020, the company reported net sales of $623.5 million, up from $542.2 million in the same period in the previous year. On a constant currency basis, the sales increase was 14.1%.
 
Running shoe brand Hoka One One saw the most impressive quarterly increase, posting an 83.2% rise in its sales, which totaled $143.1 million.

Ugg, Deckers’ largest brand, achieved sales of $415.1 million, up 2.5% compared to the prior-year period, while sandal specialist Teva reported a 20.5% increase in its sales, which came to $27.7 million.
 
Casual footwear brand Sanuk, on the other hand, saw an 11.4% decrease in its sales, which totaled $9.5 million.
 
By distribution channel, Deckers posted a 74.2% increase in direct-to-consumer sales of $171.9 million, while wholesale net sales were $451.6 million, rising 1.8% compared to the second quarter in the previous year. Having temporarily closed retail locations due to the ongoing health crisis, Deckers had reopened 95% of its global stores by the start of the second quarter.
 
Domestic sales at the company totaled $427.4 million, up 19.4% from the prior-year period. International sales were $196.1 million, up 6.4%.
 
Deckers’ quarterly net income was $101.6 million, or $3.58 per diluted share, rising from $77.8 million, or $2.71 per diluted share, in the same period in the previous year.
 
“Deckers' record second quarter performance was the result of our powerful brands, dedicated teams, innovative product launches, and ability to capture demand online,” said Deckers CEO and president Dave Powers in a release. “We are thrilled by the resilience of our organization to deliver strong results in the first half of fiscal year 2021.”
 
For the first half of the fiscal year, Deckers reported net sales of $906.7 million, representing a 10.7% increase compared to $819.0 million in the same six-month period in 2019. Net income totaled $93.6 million, or $3.30 per diluted share, up from $58.5 million, or $2.01 per diluted share.
 
Due to the continued uncertainty surrounding the coronavirus pandemic, Deckers did not provide financial guidance, but Powers spoke optimistically about the company’s prospects.
 
“Our brands are operating from a position of strength, and while we continue to navigate the challenges of a global pandemic, the demand for our brands combined with our strong operating model and healthy balance sheet leave Deckers well positioned for the long-term,” he explained.