Deckers Brands Q2 net sales up 21 percent, Ugg and Hoka stand out
Deckers Brands has reported a jump in net sales in the second quarter, driven by strong growth at its Ugg and Hoka brands.
In the three months to September 30, net sales came in at 721.9 million dollars, up 21.3 percent year-over-year, or up 24.8 percent on a constant currency basis.
Sales at Ugg increased 6.3 percent to 476.5 million dollars in the quarter, while sales at Hoka surged 58.3 percent to 333 million dollars.
“Deckers' strong performance in the first half of fiscal year 2023 is a testament to our team's execution, despite a challenging macroeconomic backdrop,” said president and CEO Dave Powers in a statement.
“As we head into the Ugg brand's peak selling season and continue to fuel expanding demand for Hoka performance footwear, we are confident in our ability to deliver our maintained full year guidance,” he said.
Deckers Brands reaffirms FY outlook
Breaking it down by geography, sales in the company’s home market of the US were up 20 percent to 617.7 million dollars, while international sales grew 24.4 percent to 257.9 million dollars.
By channel, wholesale net sales increased 16.7 percent to 636.5 million dollars, while direct-to-consumer (DTC) net sales increased 35.3 percent to 239.1 million dollars.
Net income dropped slightly to 101.5 million dollars from 102.1 million dollars a year ago.
Operating income fell to 127.8 million dollars from 128.2 million dollars.
Deckers Brands reaffirmed its full-year outlook of net sales in the range of 3.45 billion dollars to 3.50 billion dollars, and diluted earnings per share in the range of 17.5 dollars to 18.35 dollars.