Net sales of American company Deckers Brands jump 24.7% in Q2 FY24

27 Oct '23

3 min read

Pic: Deckers Brands

Insights

Deckers Brands reported a robust 24.7 per cent rise in net sales to $1.092 billion for Q2 FY24.
Strong growth was seen in its DTC segment, up 38.8 per cent, and the wholesale channel, up 19.4 per cent.
UGG and Hoka brands saw growth, while Teva and Sanuk saw declines.
Gross margin improved to 53.4 per cent, and diluted earnings per share rose to $6.82.

Deckers Brands, a leading American firm in designing, marketing, and distributing innovative footwear, apparel, and accessories, has posted a net sales increase of 24.7 per cent to $1.092 billion in the second quarter of fiscal 2024 (Q2 FY24), up from $875.6 million in the same period last year. On a constant currency basis, the company still reported a robust 24.2 per cent growth in net sales. Deckers Brands witnessed a significant surge in its direct-to-consumer (DTC) segment, with net sales climbing 38.8 per cent to $331.7 million, compared to $239.1 million last year.

The comparable net sales for DTC also increased by 36.8 per cent. In the wholesale channel, the company reported a 19.4 per cent increase in net sales to $760.2 million, compared to $636.5 million in the previous year.

Geographically, Deckers Brands saw domestic net sales increase by 21.1 per cent to $748 million, up from $617.7 million last year. International net sales weren't far behind, showing a 33.3 per cent surge to $343.9 million, compared to $257.9 million in the same period last year, the company said in a media release.

The company’s gross margin expanded to 53.4 per cent in Q2 FY24, a significant improvement from last year’s 48.2 per cent. Selling, general, and administrative expenses increased to $358.4 million from $294.1 million last year. Operating income almost doubled, standing at $224.6 million, compared to $127.8 million. Diluted earnings per share also showed remarkable growth, coming in at $6.82 compared to $3.80 from the previous year.

Among the company’s brands, UGG led the way with a 28.1 per cent increase in net sales to $610.5 million, up from $476.5 million last year. The Hoka brand followed closely, with net sales growing 27.3 per cent to $424 million, compared to $333 million last year. On the downside, the Teva brand experienced a 28.4 per cent decline in net sales to $21.5 million, while the Sanuk brand net sales dropped by 28.5 per cent to $5.4 million. Other brands, primarily composed of Koolaburra, saw a modest increase in net sales by 7.2 per cent to $30.6 million, compared to $28.5 million.

"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, president and chief executive officer. "Our team's ability to deliver compelling products that create emotional connections with consumers through engaging marketing campaigns, differentiates our brands in a competitive marketplace. This, paired with our strategic approach to marketplace management, led by our DTC channel, remains paramount to the success of our brands and company."

Fibre2Fashion News Desk (DP)

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