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By
Fibre2Fashion
Published
Aug 7, 2020
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Deckers Brands sales rise in Q1, loss shrinks

By
Fibre2Fashion
Published
Aug 7, 2020

Deckers Brands, the US-based owner of Ugg and other labels, reported 2.3 per cent sales growth to $282.2 million in its first quarter ended on June 30, compared to sales of $276.8 million in the same period last year. The company's net loss for the quarter fell to $7.6 million compared to $31.4 million a year ago.



 
“First quarter performance was a testament to the resilience of our brands, the strength of our e-commerce platform, and the hard work of our employees,” Dave Powers, president and chief executive officer, said. 
 
Gross profit for Q1 FY21 rose to $142.5 million from $130 million. The loss from operations was $7.6 million, down from $31.4 million. Selling, general and administrative expenses were $150.3 million.

Sales of UGG brand for the quarter fell 10.0 per cent to $124.7 million but Hoka One One brand sales jumped 37.1 per cent to $109 million. Teva brand sales dropped 7.9 per cent to $35.2 million and Sanuk brand sales slipped 29.2 per cent to $13.2 million.
 
During Q1 FY20, direct to customer sales grew 74.2 per cent to $139.8 million but wholesale decreased 27.1 per cent to $143.3 million.
 
"While we are encouraged by the positive start to fiscal year 2021, we expect further challenges related to the Covid-19 pandemic, depending on the duration and severity of economic effects,” Powers said. “We continue to believe our powerful brands, advanced omnichannel capabilities, and healthy balance sheet provide the foundation for our organisation to weather this challenging environment and succeed over the long-term."

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