Deckers Q1 sales surge on Hoka brand, reaffirms full-year guidance
Deckers Brands announced Thursday a strong start to fiscal 2023, reporting a first-quarter revenues uptick of 22%, on the back of strong growth in its portfolio darling, Hoka.
The Goleta, California-based company said net sales increased 21.8% to $614.5 million compared to $504.7 million. On a constant currency basis, net sales increased 23.5%, said the company which operates footwear brands Hoka, Ugg, Teva and Sanuk, among others.
Deckers said Ugg brand net sales decreased 2.4% to $207.9 million, while Sanuk net sales decreased 5.9% to $14.2 million, partially offset by its Teva brand, which saw a net sales increase of 2% to $59.6 million.
Decker's 'other brands', primarily composed of Koolaburra, saw a net sales decreased 45.3% to $2.7 million. However, the brand's portfolio darling remains Hoka, which saw a net sales increase of 54.9% to $330 million for the quarter.
By channel, wholesale net sales increased 24.7% to $429.4 million, while direct-to-consumer (DTC) net sales increased 15.4% to $185.1 million. Comparable DTC net sales increased 14.9%.
By region, domestic net sales increased 14.4% to $384.5 million and international net sales increased 36.4% to $229.9 million.
Net income dipped to $44.8 million, compared to $48.1 million. Diluted earnings per share were $1.66 compared to $1.71, last year.
"Fiscal year 2023 is off to a solid start, with Hoka driving strong growth, propelling the brand to eclipse the billion-dollar milestone over the trailing twelve-month period," said Dave Powers, president and chief executive officer.
"The Hoka brand's speed to achieve this feat is exciting, especially as the brand's increasing penetration to our portfolio benefits Deckers' overall quarterly financial and operational performance. In addition, our board's recent approval of a significantly increased share repurchase authorization shows a great deal of confidence in our long-term strategic plan and the opportunities that lie ahead."
The company also reaffirmed its full-year fiscal 2023 guidance revealing net sales are still expected to be in the range of $3.45 billion to $3.50 billion. Diluted earnings per share is now expected to be in the range of $17.50 to $18.35 for the twelve months.
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