Deckers Brands Q2 net sales jump 24.7 percent

Deckers Brands second quarter net sales increased 24.7 percent to 1.092 billion dollars, while on a constant currency basis, net sales increased 24.2 percent.

Gross margin was 53.4 percent compared to 48.2 percent, operating income was 224.6 million dollars compared to 127.8 million dollars and diluted earnings per share were 6.82 dollars compared to 3.80 dollars.

“The strength of demand for our Hoka and UGG brands continued to drive exceptional performance, producing record revenue and earnings for Deckers in both the second quarter and first half of fiscal year 2024,” said Dave Powers, the company’s president and CEO.

The company’s direct-to-consumer (DTC) net sales increased 38.8 percent to 331.7 million dollars, DTC comparable net sales increased 36.8 percent and wholesale net sales increased 19.4 percent to 760.2 million dollars.

Domestic net sales for the quarter increased 21.1 percent to 748 million dollars, while international net sales increased 33.3 percent to 343.9 million dollars.

The company reported UGG brand net sales increased 28.1 percent to 610.5 million dollars, Hoka brand net sales increased 27.3 percent to 424 million dollars, Teva brand net sales decreased 28.4 percent to 21.5 million dollars, Sanuk brand net sales decreased 28.5 percent to 5.4 million dollars and other brands, primarily composed of Koolaburra increased 7.2 percent to 30.6 million dollars.

For the full year ahead, the company said, net sales are now expected to be approximately 4.025 billion dollars, gross margin is expected to be in the range of 52.5 percent to 53 percent and diluted earnings per share are expected to be in the range of 22.90 dollars to 23.25 dollars.