Hoka One One helps Deckers over $2 billion milestone with 2019 revenues
Goleta, California-based fashion and footwear group Deckers Brands announced on Thursday that it made over $2 billion in annual revenues for the first time in fiscal 2019, with particularly strong growth seen at its Hoka One One running shoe brand.
In the fiscal year ended March 31, 2019, Deckers reported net sales of $2.02 billion, up 6.2% (5.8% in constant currencies) from $1.90 billion in the previous year. This progress was driven by an impressive 45.4% increase in sales at the company’s Hoka One One brand, where revenues totaled $223.1 million.
Both Ugg and Teva also saw minor increases in annual sales, posting growth of 1.7% to $1.533 billion and 2.9% to $137.4 million, respectively. Deckers’ casual footwear brand Sanuk, on the other hand, fared considerably less well, seeing sales drop 9.1% to $82.6 million.
The group reported growth across its different geographies in 2019 but its wholesale channel performed significantly better than its direct-to-consumer (DTC) business, with the former seeing a 9.9% increase in sales, while the latter posted a 0.1% decrease.
Net earnings for the year totaled $264.31 million ($8.84 per diluted share), compared to $114.39 million ($3.58) in fiscal 2018.
In the fourth quarter, Deckers’ net sales decreased 1.6% (1.3% in constant currencies) to $394.1 million, down from $400.7 million in the prior-year period.
Here too Hoka was a bright spot, contributing $67.1 million in sales – a 33.2% increase compared to Q4 2018. Ugg (-7.2%), Teva (-3.8%) and Sanuk all posted sales decreases, with Sanuk suffering a particularly noteworthy decline of 11.7%.
By region sales results were a mixed bag, the American company’s quarterly net sales increasing 1.2% to $252.0 million on its domestic market, while its international sales dropped 6.3% to $142.1 million.
Once again wholesale outperformed DTC, boasting a 6.4% increase in sales, while DTC saw a decrease of 11.8%, as well as a 0.5% decline in comparable sales.
Quarterly net earnings came to $23.97 million ($0.82 per diluted share), compared to $20.62 million ($0.66) in the same period in the previous year.
“Fiscal 2019 represented another successful year for the Deckers organization, surpassing the milestone of $2.0 billion in revenue and doing so with exceptional levels of profitability, while achieving our long-range targets a year ahead of schedule," said Deckers President and CEO Dave Powers in a release. "As we move forward in our strategic plan, we will maintain focus on positioning our brands for the future by enhancing our relationship with consumers, continuing to deliver innovative product solutions, and building brand awareness and strength across global markets.”
Looking forward to fiscal 2020, Deckers expects to see annual net sales in the range of $2.095 billion to $2.120 billion. In the first quarter, sales are expected to be between $250.0 million and $260.0 million.
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