Deckers Brands, a California-based footwear, apparel, and accessories company, has reported a significant 15% increase in sales for the second quarter. Despite the challenges posed by the Covid-19 pandemic, the company’s Hoka One One brand experienced strong growth during this period.

For the quarter ending on September 30, 2020, Deckers Brands announced net sales of $623.5 million, a notable increase from $542.2 million in the same period the previous year. Adjusted for currency fluctuations, the sales increase reached 14.1%. Hoka One One, a popular running shoe brand, led the way with a remarkable 83.2% growth, generating $143.1 million in sales.

Deckers’ largest brand, Ugg, also performed well, achieving sales of $415.1 million, a 2.5% increase compared to the same period last year. Sandal specialist Teva saw a significant 20.5% increase in sales, amounting to $27.7 million. On the other hand, the casual footwear brand Sanuk experienced an 11.4% decrease in sales, totaling $9.5 million.

When analyzing sales by distribution channel, Deckers reported an impressive 74.2% increase in direct-to-consumer sales, reaching $171.9 million. Wholesale net sales also saw growth, rising by 1.8% to $451.6 million compared to the previous year’s second quarter. By the beginning of the second quarter, Deckers had reopened 95% of its global stores after temporarily closing them due to the pandemic.

In terms of geographical sales, domestic sales for Deckers reached $427.4 million, reflecting a 19.4% increase from the same period last year. International sales also saw a positive trend, reaching $196.1 million, a 6.4% increase.

Deckers’ net income for the quarter amounted to $101.6 million, or $3.58 per diluted share, up from $77.8 million, or $2.71 per diluted share in the same period the previous year. Reflecting on the company’s performance, Deckers CEO and president, Dave Powers, attributed the success to their strong brands, dedicated teams, innovative product launches, and ability to meet online demand.

For the first half of the fiscal year, Deckers reported net sales of $906.7 million, indicating a 10.7% increase compared to the same six-month period in the previous year. Net income for this period amounted to $93.6 million, or $3.30 per diluted share, up from $58.5 million, or $2.01 per diluted share.

Due to the ongoing uncertainty presented by the pandemic, Deckers did not provide financial guidance. However, Powers expressed optimism about the company’s future, stating that their strong brands, operating model, and healthy balance sheet position them well for the long-term.

For more information on Deckers Brands, visit their official website: https://www.deckers.com/

To learn more about the Hoka One One brand, visit their website: https://www.hokaoneone.com/