US' Deckers Brands posts double-digit sales growth in Q1 FY24

On the distribution front, while the wholesale net sales saw a marginal dip to $425.4 million from $429.4 million, the direct-to-consumer (DTC) channel experienced a robust 35.3 per cent increase in Q1 FY24. DTC net sales rose from $185.1 million to $250.4 million, and the comparable net sales in the same channel rose by 33.4 per cent.

In terms of geography, both domestic and international sales witnessed healthy growth in Q1 FY24. Domestic net sales increased by 9.1 per cent, reaching $419.5 million from $384.5 million, while international sales grew by 11.4 per cent to $256.3 million from $229.9 million YoY, the company said in a press release.

The gross margin for the company improved to 51.3 per cent from 48 per cent. Selling, general, and administrative expenses also increased to $275.7 million from the previous $238.4 million. The operating income rose to $70.7 million from $56.3 million, and diluted earnings per share were up to $2.41 from $1.66.

In the brand-wise performance summary for Q1 FY24, the Hoka brand led the portfolio with net sales increasing 27.4 per cent to $420.5 million from $330.0 million. However, other brands showed a decline: UGG brand net sales fell by 6 per cent, Teva by 18.8 per cent, Sanuk by 32.3 per cent, and other brands, primarily Koolaburra, dropped by 33.9 per cent.

"Deckers begins fiscal 2024 in a position of strength, accelerating towards our outlook for the full year, which has been raised to reflect Hoka brand momentum," said Dave Powers, president and chief executive officer. "We remain dedicated to delivering results in alignment with our strategic focus to grow DTC and build our presence within international markets. Combined with our disciplined brand marketplace management and nimble operating model, this approach underscores our confidence to achieve our increased full-year outlook and drive long-term success for our brands."

Deckers Brands’ cash and cash equivalents reached $1.047 billion in Q1 FY24, a significant jump from $695.2 million in the previous year. The inventories were down to $740.6 million compared to $839.5 million, showing improved inventory management.

Fibre2Fashion News Desk (DP)