Hoka and Ugg Drive Parent Deckers to Explosive Q2 Sales, Profits
Deckers Outdoor Corp.’s casual and active offerings — which coincide with pandemic-induced shifts to at-home and active lifestyles — helped drive the company to a better-than-expected second quarter.
For the three months ended Sept. 30, the Goleta, Calif.-based corporation posted earnings of $3.58 per share, versus the prior year’s earnings of $2.71 per share and better than analysts’ predictions of earnings of $2.63 per share. Revenues also improved 15% to $623.5 million, compared with market watchers’ forecasts of $553.62 million.
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Sanuk was the only label to record a decline in sales, dipping 11.4% to $9.5 million during the period. Ugg, which continues to yield the bulk of revenues for Deckers, saw a 2.5% gain in sales to $415.1 million, while revenues at Teva increased 20.5% to $27.7 million.
Rising star Hoka One One, on the other hand, delivered a whopping 83.2% surge in revenues to $143.1 million as novice runners and elite athletes alike increasingly turned to the outdoors to stay active amid coronavirus-related restrictions and safety measures. (Last quarter, the running shoe brand was the only banner in the corporation’s roster to record a boost in sales.)
“Deckers’ record second-quarter performance was the result of our powerful brands, dedicated teams, innovative product launches and ability to capture demand online,” president and CEO Dave Powers said in a statement. “We are thrilled by the resilience of our organization to deliver strong results in the first half of fiscal year 2021.”
What’s more, the retail group’s wholesale business advanced 1.8% to $451.6 million. It also logged a 74.2% spike in direct-to-consumer revenues to $171.9 million. Internationally, sales for the second quarter climbed 6.4% to $196.1 million, while domestic sales rose 19.4% to $427.4 million. (Roughly 95% of its global brick-and-mortar fleet was open for the entire second quarter.)
At the end of the three months, Deckers had a liquidity position of approximately $1.1 billion dollars, which included $626.4 million in cash and equivalents, plus $462.6 million available under its existing revolving credit facilities. It opted against providing an outlook for the full year.
“Our brands are operating from a position of strength,” Powers added, “and while we continue to navigate the challenges of a global pandemic, the demand for our brands combined with our strong operating model and healthy balance sheet leave Deckers well positioned for the long term.”
