Deckers Brands sees steady sales growth in Q1, but bottom line shrinks

Ugg boots
Ugg sales grew 4.9 per cent in Q1. (Source: Ugg/Facebook)

Deckers Brands has reported an uplift in sales for the first quarter, once again driven by its core labels Hoka and Ugg.

The company’s net sales for the quarter ended June 30 rose 5.7 per cent to $1.02 billion (up 4.8 per cent on a constant currency basis).

Hoka sales increased 7.7 per cent to $703.5 million, and Ugg sales grew 4.9 per cent to $278.0 million. Meanwhile, Teva sales slid 18.1 per cent to $37.9 million.

By geography, US net sales were up 3.2 per cent, while international sales were up 8.4 per cent.

President and CEO Stefano Caroti said the company delivered solid results for the quarter. 

“This performance reflects the continued strength of Hoka and Ugg, with growing global demand as both brands extend their reach through compelling product innovation. 

“As we build deeper connections with consumers across geographies and channels, we remain focused on advancing our premium brands and executing with discipline against our long-term strategies,” Caroti said.

On the bottom line, operating income decreased from $165.3 million a year ago to $155.3 million, and net income slid 6.7 per cent to $129.9 million. 

For the full year, Deckers expects net consolidated sales to be in the range of $5.86 billion to $5.91 billion. Hoke sales are forecast to increase by a low-double-digit percentage, while Ugg is expected to grow by a mid-single-digit percentage.

Last year, Deckers’s revenue increased 10 per cent to a record $5.47 billion.  

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