Deckers Q3 net sales increase 6.6 percent

Deckers Brands for the third fiscal quarter ended December 31, 2017 reported net sales increase of 6.6 percent to 810.5 million dollars compared to 760.3 million dollars for the same period last year. On a constant currency basis, net sales increased 6.3 percent. Diluted earnings per share for the quarter were 2.69 dollars compared to 1.27 dollars for the same period last year and non-GAAP diluted earnings per share were 4.97 dollars compared to 4.11 dollars last year.

“Our third quarter results, which meaningfully exceeded expectations, underscore the progress we have made developing a stronger foundation to support profitable growth,” said Dave Powers, the company’s President and Chief Executive Officer in a media statement, adding, “Our refined product strategies, enhanced consumer messaging and wholesale account optimization efforts resulted in much stronger full price selling for our brand portfolio during the key holiday season.”

Deckers’ third quarter financial review

Gross margin was 52.2 percent compared to 50.5 percent for the same period last year. Operating income was 193.2 million dollars compared to 53.3 million dollars for the same period last year. Non-GAAP operating income was 203.1 million dollars compared to 182.2 million dollars last year.

UGG brand net sales increased 4.3 percent to 734.7 million dollars compared to 704 million dollars for the same period last year. Hoka One One brand net sales increased 65.7 percent to 31.8 million dollars compared to 19.2 million dollars for the same period last year, while Teva brand net sales increased 33.4 percent to 19.5 million dollars compared to 14.6 million dollars for the same period last year. Sanuk brand net sales for the third quarter were flat to last year at 13.9 million dollars.

Wholesale net sales increased 10.3 percent to 428.8 million dollars compared to 388.6 million dollars last year and DTC net sales for the quarter increased 2.7 percent to 381.7 million dollars compared to 371.7 million dollars for the same period last year. DTC comparable sales for the third quarter increased 1.7 percent.

Domestic net sales increased 2.5 percent to 501.7 million dollars compared to 489.5 million dollars for the same period last year. International net sales for the period increased 14 percent to 308.8 million dollars compared to 270.8 million dollars for the same period last year.

Deckers announces FY18 and Q4 guidance

Deckers now expects fiscal year 2018 net sales to be in the range of 1,873 million dollars to 1,878 million dollars and gross margin is expected to be approximately 49 percent. Non-GAAP diluted earnings per share are expected to be in the range of 5.37 dollars to 5.42 dollars excluding any charges that may occur from additional store closures, restructuring and other charges.

For the fourth quarter, net sales are expected to be in the range of 370 million dollars to 375 million dollars and non-GAAP diluted earnings per share in the range of 0.15 dollar to 0.20 dollar.

Picture:Hoka One One website