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US' Deckers Brands' sales soar 22.1% in Q1 FY25

26 Jul '24

2 min read

US' Deckers Brands' sales soar 22.1% in Q1 FY25

Pic: trongnguyen - stock.adobe.com

Insights

Deckers Brands reported a 22.1 per cent increase in Q1 FY25 net sales, reaching $825.3 million.
Direct-to-consumer sales grew 24 per cent and wholesale sales rose 21 per cent.
Gross margin improved to 56.9 per cent.
Domestically, sales increased 23 per cent, and internationally, 20.8 per cent.
Hoka led brand growth with a 29.7 per cent increase.

Deckers Brands, a leading US-based firm in designing, marketing, and distributing innovative footwear, apparel, and accessories, has reported a 22.1 per cent increase in net sales in the first quarter of fiscal 2025 (Q1 FY25), reaching $825.3 million, compared to $675.8 million in the same period last year. On a constant currency basis, net sales rose by 23 per cent.

In the direct-to-consumer (DTC) segment, net sales surged by 24.0 per cent to $310.6 million, up from $250.4 million. DTC comparable net sales also saw a significant increase of 21.9 per cent. Wholesale net sales experienced a 21.0 per cent rise, reaching $514.8 million compared to $425.4 million, the company said in a media release.

Domestically, Deckers Brands saw a 23 per cent increase in net sales, totalling $515.9 million, up from $419.5 million. Internationally, net sales grew by 20.8 per cent to $309.5 million, compared to $256.3 million.

The company’s gross margin improved to 56.9 per cent, compared to 51.3 per cent in the same period last year. Selling, general, and administrative expenses were $337.2 million, up from $275.7 million. Operating income saw a significant rise, reaching $132.8 million compared to $70.7 million in the previous year. Diluted earnings per share (EPS) increased to $4.52 from $2.41.

The Hoka brand led the growth with a 29.7 per cent increase in net sales, totalling $545.2 million compared to $420.5 million. The UGG brand also performed well, with net sales increasing by 14.0 per cent to $223.0 million, up from $195.5 million.

In contrast, the Teva brand experienced a decline in net sales by 4.3 per cent, reaching $46.3 million compared to $48.4 million. The Sanuk brand saw a significant decrease in net sales by 28.4 per cent, totalling $6.9 million, down from $9.6 million. Other brands, primarily composed of Koolaburra, reported a remarkable increase of 123.5 per cent in net sales, reaching $4 million compared to $1.8 million.

"Fiscal 2025 is off to a great start, with Hoka and UGG delivering fantastic first quarter results that have contributed to our increased outlook for the full fiscal," said Stefano Caroti, chief commercial officer and incoming president and chief executive officer. "I'm excited by the opportunity to now lead Deckers and its iconic brands, with the support of our talented teams that remain focused on the long-term opportunities ahead for this great company."

Fibre2Fashion News Desk (DP)

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