Deckers sales climb 50% in fourth quarter

By

Robin Driver

Published
May 21, 2021

Deckers Brands, the Goleta, California-based owner of brands including Ugg and Hoka One One, announced Q4 sales of $561.2 million for Q4 on Thursday, up 49.7% from $374.9 million in the same period in the previous year. In constant currencies the rise was 47.9%.

 
In the first quarter ended March 31, 2021, the company’s sales growth was once again driven by the Hoka One One running shoe brand, which posted revenues of $177.5 million, an increase of 74.2% compared to the prior-year period.
 
The Ugg brand also saw strong year-over-year growth of 53.1% in its sales, which totaled $300.5 million. Teva posted sales of $60.2 million, up 1.0% year over year, while the Sanuk brand saw its revenues dip 8.8% to $12.1 million.

Sales in the company’s “other brands” division, which is primarily composed of the Koolaburra brand, rose 178.5% to $10.9 million.
 
Broken down by channel, Deckers’ wholesale revenues increased 41.4% to $326.1 million, while direct-to-consumer (DTC) sales rose 63.0% to $235.1 million. Comparable DTC sales increased 76.3%.
 
Around 77% of Deckers’ global stores were open for the entirety of the fourth quarter, albeit with limited capacity due to enhanced health and safety protocols.
 
The company experienced solid growth both on the domestic and international markets, reporting a 64.3% increase in domestic sales totaling $379.2 million and a 26.2% rise in international sales, which came to $181.9 million.
 
Deckers’ quarterly net income was $33.5 million, or $1.18 per diluted share, compared to $16.1 million, or $0.57 per diluted share, in the same period in the previous year.
 
For the full fiscal year, the company reported net sales of $2.55 billion, up 19.4%, or 18.4% in constant currencies, from $2.13 billion in the previous year. Here too, Ugg and Hoka One One led growth, with the former seeing a 12.9% increase in sales totaling $1.72 billion and the latter posting a 62.0% rise in revenues of $571.2 million.
 
Annual net income at the group was $382.6 million, or $13.47 per diluted share, compared to $276.1 million, or $9.62 per diluted share, in the previous year.
 
“Fiscal 2021 was an exceptional year for Deckers, led by global growth of the Hoka brand, and broad-based demand for the head-to-toe assortment of Ugg brand products,” explained Deckers president and CEO Dave Powers in a release. “While our fourth quarter benefited from certain macro tailwinds as well as lapping last year's disruption, the health of our brands, strength of our omni-channel organization, and our digitally focused long-term strategies provided the foundation for success over the past year, accelerating our growth trajectory.”
 
Looking forward, Deckers expects to achieve net sales in the range of $2.95 billion to $3.00 billion in the fiscal year ending March 31, 2022. Diluted earnings per share are expected to be between $14.05 and $14.65.