Deckers raises 2020 outlook on strong Q1
Goleta, California-based footwear group Deckers Brands raised its 2020 outlook on Thursday, as first quarter net sales climbed 10.5 percent.
The company’s total net sales for the first quarter ended June 30, 2019, came to $276.8 million, compared to $250.6 million for the same period last year.
Sales at Ugg increased 1.5 percent to $138.5 million, compared to $136.5 million in the same period in the previous year, while the Hoka One One label saw its sales skyrocket a staggering 69.2 percent to $79.5 million.
Deckers’ Sanuk brand fared less well decreasing 23.5 percent to achieve sales of $18.7 million, as did Teva brand net sales, which for the first quarter decreased 4.3 percent to $38.3 million.
In terms of its distribution channels, revenues in the company’s wholesale division increased 10.7 percent to $196.6 million, compared to $177.6 million for the same period last year. Direct-to-consumer (DTC) sales rose 10 percent to $80.3 million, while DTC comparable sales increased 16.2 percent.
Deckers also had more success in its home market than abroad in the quarter, reporting an increase of 18.1 percent in U.S. sales, which totalled $167.3 million, while international sales increased a modest 0.6 percent to $109.5 million.
In profitability terms, Deckers came out with a quarterly loss of $0.67 per share, narrowing from the $1.00 per share loss last year.
"I am proud of the positive momentum that our portfolio of brands continues to build as we remain focused on the strategies that have proven successful in strengthening our operations over the past few years,” said Dave Powers, president and CEO, in a news statement.
“The Deckers team continues to drive excitement behind innovative product introductions and remains disciplined in delivering top-tier levels of profitability. With the first quarter now behind us, we are firmly committed to our strategies and remain confident in our abilities to deliver on them."
In light of its strong first quarter, Deckers has raised its guidance for the full fiscal year 2020. The company now expects net sales to be between $2.1 billion to $2.125 billion.
For the second quarter, net sales are expected to be in the range of $515 million to $525 million.
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