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Net sales grow 5.4% at Deckers Brands in Q2FY16
02 Nov '15
3 min read
Net sales for the second fiscal quarter ended September 30, 2015 grew 5.4 per cent year over year at Deckers Brands, a marketer of footwear, apparel and accessories.
According to a Deckers Brands press release, net sales increased 5.4 per cent year on year to $506.2 million, while on a reported basis, they rose 1.4 per cent.
Wholesale and distributor sales for the second quarter of fiscal 2016 expanded 1.2 per cent to $400.3 million compared to $395.5 million for the same period last fiscal.
“The increase in sales was driven by an increase in domestic wholesale sales, partially offset by a decrease in international wholesale and distributor sales,” the company explained.
Direct-to-consumer sales for the reporting quarter went up 2.1 per cent to $86.6 million as against $84.8 million for the second quarter of fiscal 2015.
“This increase was primarily driven by direct-to-consumer growth in the Hoka, Sanuk, and Teva brands,” the company informed.
However, direct-to-consumer comparable sales were down 5.2 per cent, primarily driven by a decrease in tourist traffic in the US as a result of the strengthening dollar.
Gross margin for the second quarter of fiscal 2016 was 44.0 per cent compared to 46.6 per cent for the same period last fiscal.
While, SG&A expense as a percentage of sales stood at 33.5 per cent as against 34.2 per cent for the second quarter of prior fiscal.
Diluted earnings per share totaled $1.11 in the quarter under review vis-à-vis $1.17 in the second quarter of earlier fiscal, while on a constant currency basis, diluted earnings per share was up 21.4 per cent at $1.42.
"We delivered record second quarter revenue and continue to track towards achieving our financial objectives for the fiscal," CEO Angel Martinez said.
"I am very pleased with our current performance which wouldn't have been possible without the strategic investments we've made in key areas of the business over the past several years,” he added.
“From omni-channel capabilities and product innovation to marketing, we are in the process of transforming the company into a consumer centric brand operator to deliver sustainable growth,” Martinez stated.
Deckers added that even during this investment phase, they continued to demonstrate their commitment to returning value to shareholders by repurchasing more than $417 million of common stock since 2011.
According to a Deckers Brands press release, net sales increased 5.4 per cent year on year to $506.2 million, while on a reported basis, they rose 1.4 per cent.
Wholesale and distributor sales for the second quarter of fiscal 2016 expanded 1.2 per cent to $400.3 million compared to $395.5 million for the same period last fiscal.
“The increase in sales was driven by an increase in domestic wholesale sales, partially offset by a decrease in international wholesale and distributor sales,” the company explained.
Direct-to-consumer sales for the reporting quarter went up 2.1 per cent to $86.6 million as against $84.8 million for the second quarter of fiscal 2015.
“This increase was primarily driven by direct-to-consumer growth in the Hoka, Sanuk, and Teva brands,” the company informed.
However, direct-to-consumer comparable sales were down 5.2 per cent, primarily driven by a decrease in tourist traffic in the US as a result of the strengthening dollar.
Gross margin for the second quarter of fiscal 2016 was 44.0 per cent compared to 46.6 per cent for the same period last fiscal.
While, SG&A expense as a percentage of sales stood at 33.5 per cent as against 34.2 per cent for the second quarter of prior fiscal.
Diluted earnings per share totaled $1.11 in the quarter under review vis-à-vis $1.17 in the second quarter of earlier fiscal, while on a constant currency basis, diluted earnings per share was up 21.4 per cent at $1.42.
"We delivered record second quarter revenue and continue to track towards achieving our financial objectives for the fiscal," CEO Angel Martinez said.
"I am very pleased with our current performance which wouldn't have been possible without the strategic investments we've made in key areas of the business over the past several years,” he added.
“From omni-channel capabilities and product innovation to marketing, we are in the process of transforming the company into a consumer centric brand operator to deliver sustainable growth,” Martinez stated.
Deckers added that even during this investment phase, they continued to demonstrate their commitment to returning value to shareholders by repurchasing more than $417 million of common stock since 2011.
Fibre2Fashion News Desk – India
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