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Deckers Outdoor Corp. trounced estimates for third-quarter earnings and sales — largely thanks to the performance of flagship brand Ugg and rising star Hoka One One.
For the three months ended Dec. 31, the footwear group logged a 26% gain in earnings per share to $8.99 and revenues that spiked 14.8% to $1.078 billion — both record figures, according to the company. Wall Street had predicted earnings of $7.07 per share and revenues of $963.38 million.
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“Our record third-quarter performance was propelled by demand across the Ugg brand’s diversified product offering and the continued global expansion of the Hoka One One brand,” president and CEO Dave Powers said in a statement. “The performance of our brands was primarily driven by our robust e-commerce engine and the resilience displayed by our teams to overcome significant operational and macro challenges related to the pandemic.”
During the period, Ugg recorded a 12.2% jump in sales to $876.8 million. The brand, which continues to yield the bulk of revenues for Deckers, was likely dealt a boost from the holiday shopping season, when its slippers and boots often top gifting lists. Similarly, Hoka One One saw a whopping 52.1% surge in sales to $141.6 million amid the broader COVID-19-induced shift to at-home and active lifestyles.
On the other hand, revenues at Teva fell 8.7% to $15.7 million, while Sanuk decreased 17.3% to $7 million. The Koolaburra brand tumbled 5.5% to $36.7 million.
Still, Deckers notched gains across channels and geographies: Its wholesale business rose 6.2% to $557.9 million, while direct-to-consumer sales improved 25.7% to $519.9 million. (DTC comps also shot up 33.8% over the same period last year.) What’s more, domestic revenues advanced 19.3% to $770.5 million, and its international business noted a 4.8% increase to $307.2 million.
“With our strong portfolio of brands, stable operating model and powerful balance sheet, Deckers is well positioned for continued success,” Powers added.
According to the Goleta, Calif.-based company, about 75% of its global brick-and-mortar fleet was open during the entire quarter. Its outposts continue to operate at limited capacity, and it anticipates that temporary store closures in some areas will continue for at least a portion of the fourth quarter. As such, it did not provide an outlook for the fiscal year.
As of 4:30 p.m. ET, Deckers’ stock was up more than 3% to $326.50.