US firm Deckers Brands' net sales soar 16% to $1.56 bn in Q3 FY24

In terms of sales channels, direct-to-consumer (DTC) net sales experienced significant growth, rising by 22.7 per cent to $858.1 million compared to $699.3 million. DTC comparable net sales also showed a robust increase of 21.8 per cent. Wholesale net sales increased by 8.6 per cent to $702.2 million, up from $646.3 million.

Geographically, domestic net sales in the US saw a strong uptick, increasing by 15.6 per cent to $1.048 billion compared to $906.8 million. International net sales also performed well, rising by 16.7 per cent to $511.9 million, up from $438.8 million, the company said in its Q3 FY24 financial results.

Deckers Brands achieved a gross margin of 58.7 per cent, a notable improvement from 53.0 per cent in the same quarter last year. Selling, general, and administrative expenses amounted to $428.7 million, compared to $349.9 million.

Operating income for the quarter reached $487.9 million, showing substantial growth from $362.7 million in the previous year. Diluted earnings per share (EPS) also exhibited a significant increase, reaching $15.11, up from $10.48.

Looking at the performance of specific brands within Deckers, UGG brand net sales increased by 15.2 per cent to $1.072 billion compared to $930.4 million. Hoka brand net sales saw a remarkable surge, rising by 21.9 per cent to $429.3 million compared to $352.1 million. Teva brand net sales experienced a decrease of 16.2 per cent, amounting to $25.6 million compared to $30.5 million. Sanuk brand net sales decreased by 28.9 per cent to $4 million compared to $5.6 million. Other brands, primarily composed of Koolaburra, achieved a 10 per cent increase in net sales, reaching $29.6 million compared to $26.9 million.

Our brands delivered Deckers' largest quarter in history, with record revenue and earnings as both Hoka and UGG drove exceptional performance in the quarter, led by our DTC channel and high levels of full price selling," said Dave Powers, president and chief executive officer. "Global gains in awareness, combined with elevated consumer connections and innovative product offerings, continued to drive unparalleled demand for our brands."

Fibre2Fashion News Desk (DP)