Deckers Brands has unveiled its financial results for the second quarter of the 2024 fiscal year, and the company has achieved remarkable revenue figures. During this quarter, the company reported a substantial 24.7% increase in revenue, reaching a total of US$1.09 billion. On a constant currency basis, the growth was 24.2%.
The company's direct-to-consumer net sales experienced substantial growth, surging by 38.8% during this period and reaching US$331.7 million. Meanwhile, wholesale net sales also posted solid gains, increasing by 19.4% to US$760.2 million. On the domestic front, U.S. net sales witnessed a robust year-on-year growth of 21.1%, reaching US$748 million. International sales were not far behind, with a notable increase of 33.3% to US$343.9 million.
Examining the performance of specific brands within Deckers, the Ugg brand saw a remarkable 28.1% increase in net sales, totalling US$610.5 million. Hoka exhibited impressive growth as well, with a 27.3% surge in net sales, reaching US$424 million. However, Teva faced a sales decline of 28.4%, resulting in US$21.5 million in net sales, and Sanuk also experienced a downturn of 28.5, with net sales totalling US$5.4 million. The other brands, primarily represented by Koolaburra, displayed a modest yet positive increase of 7.2%, amassing US$30.6 million in net sales.
Deckers Brands also improved its gross margin, achieving 53.4% for the quarter, which marks a increase from the 48.2% gross margin during the same period in the 2023 fiscal year. Moreover, the company's operating income exhibited substantial growth of 75.7% to US$224.6 million.
Looking ahead, Deckers is anticipating net sales of approximately US$4.03 billion for the full fiscal year 2024. Furthermore, the company expects its gross margin to fall within the range of 52.5-53%.
President and CEO Dave Powers said: “The strength of demand for our Hoka and Ugg brands continued to drive exceptional performance, producing record revenue and earnings for Deckers in both the second quarter and first half of fiscal year 2024.
“Our team’s ability to deliver compelling products that create emotional connections with consumers through engaging marketing campaigns, differentiates our brands in a competitive marketplace. This, paired with our strategic approach to marketplace management, led by our DTC channel, remains paramount to the success of our brands and company. We are focused on maintaining the integrity of our healthy brands to deliver the results detailed in our increased outlook, while remaining aligned with long-term objectives.”
