Deckers Brands Q4 profits widen, Hoka drives sales growth

Deckers Brands has reported a 7.5 percent increase in sales in the fourth quarter driven by a continued strong performance by Hoka.

The company, which also owns footwear brand Ugg, made net sales 791.6 million dollars in the three months to March 31, up from 736 million dollars a year earlier. On a constant currency basis, sales were up 10.2 percent.

Of its brand portfolio, Hoka remained the main driver of growth, up 40.3 percent to 397.7 million dollars, while sales at its other key brand Ugg fell 16.1 percent to 314.3 million dollars.

Sales at Teva increased 14.6 percent to 62.8 million dollars, while sales at Sanuk decreased 10.5 percent to 10.7 million dollars. Sales at ‘Other brands’, which primarily comprises Koolaburra, fell 46.2 percent to 6 million dollars.

Growth was driven by direct-to-consumer (DTC) sales which increased 19.5 percent to 343.1 million dollars, while wholesale sales remained broadly flat at 448.4 million dollars.

Breaking it down by geography, domestic sales rose 4.1 percent to 542.4 million dollars, while international sales jumped 15.8 percent to 249.1 million dollars.

Full-year results

Looking at the full year, net sales at Deckers Brands increased 15.1 percent to 3.63 billion dollars, while sales were up 18.4 percent on a constant currency basis, with growth across channels and geographies.

Sales at Hoka surged 58.5 percent to 1.41 billion dollars, while sales at Ugg dropped 2.7 percent to 1.93 billion dollars.

Net income widened to 516.8 million dollars from 451.9 million dollars a year earlier.

Deckers Brand president and CEO Dave Powers hailed an “exceptional year” for the company.

“We continue to deliver record results, including the HOKA brand adding more than half a billion dollars of top-line revenue,” he said.

“We are energized for the path ahead as we continue investing behind our long-term strategic priorities, while maintaining a disciplined approach to managing our operating model to drive sustainable future success.”