Deckers Brands hits record $1.9bn in annual revenues
U.S. footwear company Deckers Brands reported a stellar fourth-quarter performance for its fiscal 2018, capping off a turnaround business year that resulted in record annual revenues.
“We closed fiscal 2018 on a high note as we exceeded expectations for the fifth consecutive quarter," said Dave Powers, President and Chief Executive Officer. “The entire Deckers team stepped up to the plate and performed exceptionally well despite the numerous challenges the organization faced over the last twelve months."
For the fourth-quarter, net sales increased 8.4% to $400.7 million compared to $369.5 million for the same period last year, while operating income swung to $18.3 million, compared to an operating loss of $30.9 million. Diluted earnings per share were $0.66 compared to a loss of $0.49 for the same period last year.
For the full-year, the Goleta, California-based company achieved record revenue of $1.9 billion, an increase of 6.3% and drove a 320 basis point improvement in non-GAAP operating margin to 12.4%.
The firm said it increased non-GAAP diluted earnings per share by 50% to a record $5.74.
Known for its footwear portfolio, Deckers Brands operates Ugg, Hoka One One, Teva and Sanuk.
Casual slipper and shoe maker Ugg saw sales for the year increase 3.9% to $1.5 billion; sandal brand Teva saw sales increase 13.5% to $133.6 million, while Sanuk fell 0.9% to $90.9 million. Sneaker brand Hoka One One saw sales surge 46.7% to $153.5 million for the twelve-month period.
By channel, Deckers' wholesale contingent increased 5.7% to $1.2 billion and retail lifted increased 7.4% to $715.7 million. Comparable sales increased 7%, it said.
International sales outpaced domestic sales, gaining 12.4% and 2.9% in fiscal 2018, respectively.
Moving forward, Powers reiterated that the company is well positioned to build on its success in the recent fiscal year.
The executive said he hopes to "enhance its industry competitiveness through the continued execution of our operating profit improvement plan and strategic focus."
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