Deckers Brands ups FY guidance on strong Q3

Deckers Brands has upped its full-year sales and profit outlook after reporting both top- and bottom-line growth in the third quarter of the year.

The US company reported a 13.3 percent increase in Q3 sales to 1.188 billion dollars. On a constant currency basis, sales were up 17.5 percent.

Breaking it down by channel, wholesale sales increased 8 percent to 646.3 million dollars, while direct-to-consumer (DTC) sales were up 18.7 percent to 699.3 million dollars.

Domestic sales increased 13.9 percent to 906.8 million dollars, while international sales rose 12.1 percent to 438.8 million dollars.

“Our brands delivered another stellar quarter, led by record results for both Hoka as well as our consolidated DTC business,” president and CEO Dave Powers told investors.

Hoka shines

Sales at the Hoka brand jumped 90.8 percent in the quarter, while Deckers’ biggest brand, Ugg, saw a 1.6 percent drop.

Deckers’ net income widened to 278.7 million dollars in the third quarter from 232.9 million dollars a year earlier.

Looking ahead, the company said it expects full-year net sales of between 3.50 billion dollars and 3.53 billion dollars, up from its previous guidance of between 3.45 billion dollars and 3.50 billion dollars.

It expects diluted EPS to be in the range of 18 dollars and 18.50 dollars, up from its previous guidance of between 17.50 dollars and 18.35 dollars.

Powers said: “The consistent strength of Deckers results thus far in fiscal year 2023, despite macroeconomic and currency headwinds, are the result of our brand marketplace management actions and dedication to long-term strategic priorities.”