US' Deckers Brands' net sales climb 15.1% in FY23

Breaking down sales by channel, the company's wholesale net sales grew 11.6 per cent to $2.161 billion, while direct-to-consumer (DTC) net sales rose 20.8 per cent to $1.467 billion. The company also saw a 23.1-per cent increase in DTC comparable net sales year-over-year.

Domestic net sales swelled 13.1 per cent to $2.451 billion in FY23, and international sales witnessed an even greater hike of 19.7 per cent to reach $1.176 billion, the company said in a press release.

Although Deckers' gross margin slightly declined from 51 per cent to 50.3 per cent in FY23, the company recorded an increase in operating income from $564.7 million to $652.8 million. However, selling, general, and administrative expenses also rose to $1.173 billion from $1.043 billion. The company's diluted earnings per share also climbed to $19.37 from $16.26.

Focusing on the company's brand performance for FY23, Hoka emerged as a strong performer with net sales leaping 58.5 per cent to $1.413 billion. The Teva brand also fared well with a 12.5-per cent increase in net sales to $183.1 million. On the other hand, UGG, Sanuk, and other brands primarily comprising Koolaburra witnessed decreases in net sales.

"Fiscal year 2023 was an exceptional year for the Deckers organisation, delivering 15 per cent revenue growth and increasing earnings per share nearly 20 per cent," said Dave Powers, president and chief executive officer. "We continue to deliver record results, including the Hoka brand adding more than half a billion dollars of top-line revenue. We are energised for the path ahead as we continue investing behind our long-term strategic priorities, while maintaining a disciplined approach to managing our operating model to drive sustainable future success."

For the fourth quarter (Q4) of FY23, Deckers Brands reported a 7.5-per cent year-on-year (YoY) increase in net sales to $791.6 million. Wholesale net sales remained relatively flat, while DTC net sales rose by a remarkable 19.5 per cent YoY. The company's gross margin for the quarter improved to 50 per cent, and operating income increased to $105.9 million. The diluted earnings per share for Q4 were reported at $3.46, up from $2.51 in the same period last year.

The company saw substantial growth in its Hoka brand with net sales surging 40.3 per cent to reach $397.7 million in Q4 FY23, up from $283.5 million in the previous year. However, Deckers' UGG brand suffered a setback with a 16.1-per cent decline in net sales, amounting to $314.3 million compared to $374.6 million in Q4 FY22. Other brand performances were mixed, with the Teva brand experiencing a 14.6-per cent YoY increase in net sales to $62.8 million, while Sanuk brand and other brands, primarily composed of Koolaburra, saw decreases in net sales by 10.5 per cent YoY and 46.2 YoY, respectively, the release added.

Fibre2Fashion News Desk (DP)