Deckers Brands has reported a 9 per cent increase in second-quarter revenue to $1.43 billion, supported by continued growth from its Hoka and Ugg brands.
The company’s gross margin improved slightly from 55.9 per cent to 56.2 per cent, while operating income increased from $305.1 million to $326.5 million, year-on-year.
“Hoka and Ugg again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands,” said Stefano Caroti, president and CEO of Deckers Brands.
“Our brands’ ability to connect with consumers through leading innovative products differentiates Deckers in today’s dynamic and competitive marketplace.”
Hoka brand sales rose 11.1 per cent to $634.1 million, while Ugg sales increased 10.1 per cent to $759.6 million.
Sales from the company’s other brands (including Teva and the recently phased-out Koolaburra brand) fell 26.5 per cent from $50.6 million to $37.2 million compared to the same period last year.
Deckers’ sales in international markets were up 29.3 per cent to $591.3 million, while its domestic sales saw a 1.7 per cent decline to $839.5 million.
Moving forward, Deckers expects its full-year net sales to be around $5.35 billion.
Hoka sales are expected to grow by a low-teens percentage, and UGG by a low-to-mid-single-digit percentage compared with last year.
The company expects a gross margin of about 56 per cent, and an operating margin of around 21.5 per cent.