Deckers Brands, the American company known for owning popular brands like Ugg, has reported positive sales growth for the first quarter of its fiscal year, which ended on June 30. Sales increased by 2.3%, reaching $282.2 million compared to $276.8 million in the same period the previous year. Alongside this, the company saw a significant decrease in net loss, dropping to $7.6 million from $31.4 million.

Dave Powers, President and CEO of Deckers Brands, expressed his satisfaction with the company’s performance in the first quarter. He attributed their success to the resilience of their brands, the strength of their e-commerce platform, and the hard work of their employees. The company’s gross profit rose to $142.5 million from $130 million, and the loss from operations decreased to $7.6 million from $31.4 million. However, selling, general, and administrative expenses amounted to $150.3 million.

While the overall sales for the company showed growth, there were differences among its brands. UGG brand sales saw a decline of 10%, amounting to $124.7 million. On the other hand, Hoka One One brand sales experienced a significant increase of 37.1% to $109 million. Teva brand sales dropped by 7.9% to $35.2 million, and Sanuk brand sales slipped by 29.2% to $13.2 million.

The company’s direct-to-customer sales during the first quarter of fiscal year 2021 grew by a substantial 74.2% to $139.8 million, but wholesale sales experienced a significant decrease of 27.1% to $143.3 million. Despite the positive start to the fiscal year, Deckers Brands foresees further challenges due to the ongoing Covid-19 pandemic. The extent and duration of the economic effects of the pandemic will determine the nature of these challenges. Nonetheless, the company remains confident in its powerful brands, advanced omnichannel capabilities, and healthy balance sheet, which they believe will provide a solid foundation to overcome the difficult environment and achieve long-term success.

Deckers Brands’ positive first-quarter results showcase their ability to adapt and thrive in an increasingly uncertain retail industry. With their focus on resilient brands, strong online presence, and dedicated workforce, the company is well-equipped to navigate the challenges brought about by the pandemic and ensure their continued success in the future.

Useful links:
Deckers Brands Official Website
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