Shares for Deckers Brands were up nearly 10 percent on Thursday evening after the bell, as the footwear company reported another positive quarter driven by its star Hoka and Ugg brands.
The Goleta, Calif.-based footwear company reported net sales in the second quarter of 2024 increased 24.7 percent to $1.09 billion, compared to $875.6 million the same time last year. Deckers also saw a bump in its direct-to-consumer channel, reporting an increase of 38.8 percent to $331.7 million compared to $239.1 million in Q2 2023. Wholesale net sales for Q2 were up 19.4 percent to $760.2 million, compared to $636.5 million the same period last year.
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By brand, Ugg jumped ahead after several quarters of lagging sales, with net sales in the quarter up 28.1 percent to $610.5 million, compared to $476.5 million in Q2 2023. Hoka also continued its winning streak in the period, posting net sales of $424 million, a 27.3 percent from $333 million last year.
Also on the positive side, Deckers’ other brands division, primarily composed of Koolaburra, saw net sales increase 7.2 percent to $30.6 million compared to $28.5 million in the same time last year.
Company president and CEO Dave Powers said in a statement on Thursday that the strength of demand for Hoka and Ugg “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,” Powers said. “This, paired with our strategic approach to marketplace management, led by our DTC channel, remains paramount to the success of our brands and company.”
The company’s additional brands did not fare so well in the second quarter, however. Teva continued its revenue slide, with net sales down 28.4 percent to $21.5 million, compared to $30.1 million in Q2 2023, while Sanuk saw net sales fall 28.5 percent to $5.4 million, from $7.5 million the same time last year.
Deckers now expects net sales for the full fiscal year to be approximately $4.03 billion, with diluted earnings per share in the range of $22.90 to $23.25. This is up from the company’s previous guidance, which noted full-year net sales of approximately $3.98 billion, with diluted earnings per share in the range of $21.75 to $22.25.
“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,” Powers added.
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