- First Quarter FY 2025 Revenue Increased 22% to $825
Million
- First Quarter FY 2025 Diluted EPS Increased 87% to
$4.52
- FY 2025 Diluted EPS Guidance Raised to Range of
$29.75-$30.65
Deckers Brands (NYSE: DECK), a global leader in designing,
marketing, and distributing innovative footwear, apparel, and
accessories, today announced financial results for the first fiscal
quarter ended June 30, 2024. The Company also provided an update to
its financial outlook for the full fiscal year ending March 31,
2025.
“As this is my last quarter to report as CEO, I am pleased to
share these strong results to kick-off fiscal year 2025,” said Dave
Powers, President and Chief Executive Officer. “HOKA and UGG
continue to drive robust full-price demand in the global
marketplace by delivering compelling product that consumers love.
Deckers has an exciting future ahead as Stefano transitions into
his new role as CEO next week."
"Fiscal year 2025 is off to a great start, with HOKA and UGG
delivering fantastic first quarter results that have contributed to
our increased outlook for the full fiscal year," said Stefano
Caroti, Chief Commercial Officer and incoming President and Chief
Executive Officer. "I'm excited by the opportunity to now lead
Deckers and its iconic brands, with the support of our talented
teams that remain focused on the long-term opportunities ahead for
this great company."
First Quarter Fiscal 2025 Financial Review (Compared to the
Same Period Last Year)
- Net sales increased 22.1% to $825.3 million compared to
$675.8 million. On a constant currency basis, net sales increased
23.0%.
- Channel
- Direct-to-Consumer (DTC) net sales increased 24.0% to $310.6
million compared to $250.4 million. DTC comparable net sales
increased 21.9%.
- Wholesale net sales increased 21.0% to $514.8 million compared
to $425.4 million.
- Geography
- Domestic net sales increased 23.0% to $515.9 million compared
to $419.5 million.
- International net sales increased 20.8% to $309.5 million
compared to $256.3 million.
- Gross margin was 56.9% compared to 51.3%.
- Selling, general, and administrative (SG&A) expenses
were $337.2 million compared to $275.7 million.
- Operating income was $132.8 million compared to $70.7
million.
- Diluted earnings per share was $4.52 compared to
$2.41.
First Quarter Fiscal 2025 Brand Summary (Compared to the Same
Period Last Year)
- HOKA® brand net sales increased 29.7% to $545.2 million
compared to $420.5 million.
- UGG® brand net sales increased 14.0% to $223.0 million compared
to $195.5 million.
- Teva® brand net sales decreased 4.3% to $46.3 million compared
to $48.4 million.
- Sanuk® brand net sales decreased 28.4% to $6.9 million compared
to $9.6 million.
- Other brands, primarily composed of Koolaburra®, net sales
increased 123.5% to $4.0 million compared to $1.8 million.
Balance Sheet (June 30, 2024 as compared to June 30,
2023)
- Cash and cash equivalents were $1.438 billion compared to
$1.047 billion.
- Inventories were $753.3 million compared to $740.6
million.
- The Company had no outstanding borrowings.
Capital Allocation
During the first fiscal quarter, the Company repurchased
approximately 177 thousand shares of its common stock for a total
of $152.0 million at a weighted average price paid per share of
$858.79. As of June 30, 2024, the Company had approximately $789.7
million remaining under its stock repurchase authorization.
Subsequent to quarter end, the Company entered into an agreement
to divest the Sanuk brand, which we expect to close in August
2024.
Full Fiscal Year 2025 Outlook for the Twelve Month Period
Ending March 31, 2025
The Company’s full fiscal year 2025 outlook is forward-looking
in nature, reflecting our expectations as of July 25, 2024, and is
subject to significant risks and uncertainties that limit our
ability to accurately forecast results. This outlook assumes no
meaningful changes to the Company’s business prospects or risks and
uncertainties identified by management that could impact future
results, which include but are not limited to: changes in economic
conditions, including consumer confidence, discretionary spending,
inflationary pressures, and foreign currency fluctuations; supply
chain disruptions; and geopolitical tensions.
- Net sales are still expected to increase approximately 10% to
$4.7 billion.
- Gross margin is now expected to be approximately 54%.
- SG&A expenses as a percentage of net sales are now expected
to be in the range of 34% to 34.5%.
- Operating margin is now expected to be in the range of 19.5% to
20%.
- Effective tax rate is still expected to be in the range of 22%
to 23%.
- Diluted earnings per share is now expected to be in the range
of $29.75 to $30.65.
- The earnings per share guidance does not take into account the
impact from any potential future share repurchases or the proposed
six-for-one forward stock split, which has been approved by our
Board of Directors and is pending stockholder approval at our 2024
annual meeting of stockholders to be held on September 9,
2024.
Non-GAAP Financial Measures
In certain instances the Company may present financial measures
that were not prepared in accordance with generally accepted
accounting principles in the United States (non-GAAP financial
measures), including constant currency, to provide information that
may assist investors in understanding its financial results and
assessing its prospects for future performance. The Company
believes these non-GAAP financial measures are important indicators
of its operating performance because they exclude items that are
unrelated to, and may not be indicative of, its core operating
results.
The non-GAAP financial measures presented by the Company may not
necessarily be comparable to similarly titled measures of other
companies and may not be appropriate measures for comparing the
performance of other companies relative to Deckers. For example, in
order to calculate constant currency information, the Company
calculates the current period financial information using the
foreign currency exchange rates that were in effect during the
previous comparable period, excluding the effects of foreign
currency exchange rate hedges and remeasurements in the condensed
consolidated financial statements. Further, the Company reports DTC
comparable net sales on a constant currency basis for DTC
operations that were open throughout the current and prior
reporting periods, and may adjust prior reporting periods to
conform to current year accounting policies. These non-GAAP
financial measures are not intended to represent, and should not be
considered to be more meaningful measures than, or alternatives to,
measures of operating performance as determined in accordance with
GAAP. To the extent the Company utilizes such non-GAAP financial
measures in the future, it expects to calculate them using a
consistent method from period-to-period.
Conference Call Information
The Company’s conference call to review the results for the
first quarter fiscal year 2025 will be broadcast live today,
Thursday, July 25, 2024, at 4:30 pm Eastern Time and hosted at
ir.deckers.com. You can access the broadcast by clicking on the
link within the “Webcast” box at the top of the page. A replay of
the broadcast will be available for at least 30 days following the
conference call and can be accessed under the “Quarterly Earnings”
section of the “Financials” tab at the aforementioned website.
About Deckers Brands
Deckers Brands is a global leader in designing, marketing, and
distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and
high-performance activities. The Company’s portfolio of brands
includes UGG®, HOKA®, Teva®, Sanuk®, Koolaburra®, and AHNU®.
Deckers Brands products are sold in more than 50 countries and
territories through select department and specialty stores,
Company-owned and operated retail stores, and select online stores,
including Company-owned websites. Deckers Brands has over 50 years
of history building niche footwear brands into lifestyle market
leaders attracting millions of loyal consumers globally. For more
information, please visit www.deckers.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, which statements are
subject to considerable risks and uncertainties. Forward-looking
statements include all statements other than statements of
historical fact contained in this press release, including
statements regarding our projected financial results, including net
sales, gross margin, SG&A expenses, operating margin,
inventories, effective tax rate, and diluted earnings per share;
consumer confidence and discretionary spending; the strength of our
brands and demand for our products; our ability to drive future
growth and profitability; our ability to execute on our long-term
strategies and objectives; our capital allocation, including the
potential repurchase of shares; the expected timing and impact of
our planned leadership transition; and the impact of the pending
forward stock split. We have attempted to identify forward-looking
statements by using words such as “anticipate,” “believe,”
“estimate,” “intend,” “may,” “plan,” “predict,” “project,”
“should,” “will,” or “would,” and similar expressions or the
negative of these expressions.
Forward-looking statements represent our management’s current
expectations and predictions about trends affecting our business
and industry and are based on information available as of the time
such statements are made. Although we do not make forward-looking
statements unless we believe we have a reasonable basis for doing
so, we cannot guarantee their accuracy or completeness.
Forward-looking statements involve numerous known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements predicted,
assumed or implied by the forward-looking statements. Some of the
risks and uncertainties that may cause our actual results to
materially differ from those expressed or implied by these
forward-looking statements are described in the section entitled
“Risk Factors” in our Annual Report on Form 10-K for the fiscal
year ended March 31, 2024, as well as in our Quarterly Reports on
Form 10-Q and other filings with the Securities and Exchange
Commission.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. Except as required by
applicable law or the listing rules of the New York Stock Exchange,
we expressly disclaim any intent or obligation to update any
forward-looking statements, or to update the reasons actual results
could differ materially from those expressed or implied by these
forward-looking statements, whether to conform such statements to
actual results or changes in our expectations, or as a result of
the availability of new information.
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (UNAUDITED)
(dollar and share data amounts in
thousands, except per share data)
Three Months Ended June
30,
2024
2023
Net sales
$
825,347
$
675,791
Cost of sales
355,347
329,367
Gross profit
470,000
346,424
Selling, general, and administrative
expenses
337,193
275,688
Income from operations
132,807
70,736
Total other income, net
(16,346
)
(10,628
)
Income before income taxes
149,153
81,364
Income tax expense
33,528
17,812
Net income
115,625
63,552
Total other comprehensive loss, net of
tax
(3,800
)
(8,299
)
Comprehensive income
$
111,825
$
55,253
Net income per share
Basic
$
4.54
$
2.43
Diluted
$
4.52
$
2.41
Weighted-average common shares
outstanding
Basic
25,478
26,165
Diluted
25,581
26,321
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(dollar amounts in thousands)
June 30, 2024
March 31, 2024
ASSETS
(AUDITED)
Current assets
Cash and cash equivalents
$
1,438,397
$
1,502,051
Trade accounts receivable, net
303,128
296,565
Inventories
753,282
474,311
Other current assets
118,023
170,556
Total current assets
2,612,830
2,443,483
Property and equipment, net
305,585
302,122
Operating lease assets
221,207
225,669
Other noncurrent assets
166,597
164,305
Total assets
$
3,306,219
$
3,135,579
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Trade accounts payable
$
642,595
$
378,503
Operating lease liabilities
46,362
53,581
Other current liabilities
223,513
287,909
Total current liabilities
912,470
719,993
Long-term operating lease liabilities
216,006
213,298
Other long-term liabilities
103,261
94,820
Total long-term liabilities
319,267
308,118
Total stockholders’ equity
2,074,482
2,107,468
Total liabilities and stockholders’
equity
$
3,306,219
$
3,135,579
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725088622/en/
Investor Contact: Erinn Kohler | VP, Investor Relations,
Corporate Planning & Business Analytics | Deckers Brands |
805.967.7611
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