Deckers Brands, the California-based footwear company known for brands like Ugg, Teva, and Hoka, has reported strong first-quarter sales for fiscal year 2023. The company announced a 22% increase in net sales, reaching $614.5 million compared to $504.7 million in the previous year. When factoring in currency exchange rates, net sales increased by 23.5%.

Despite a slight decline of 2.4% in net sales for the Ugg brand, Hoka showed remarkable growth with a 54.9% increase, reaching $330 million for the quarter. Sanuk, another brand under Deckers, experienced a decline of 5.9% in net sales, and the company’s “other brands,” primarily Koolaburra, saw a significant decrease of 45.3% in net sales.

Wholesale net sales for the company increased by 24.7% to $429.4 million, while direct-to-consumer (DTC) net sales rose by 15.4% to $185.1 million. DTC comparable net sales also increased by 14.9%. Deckers reported a domestic net sales increase of 14.4% to $384.5 million and an international net sales increase of 36.4% to $229.9 million.

Although there was a slight dip in net income from $48.1 million to $44.8 million, diluted earnings per share for the quarter were $1.66 compared to $1.71 in the previous year.

CEO Dave Powers expressed excitement over the strong performance of the Hoka brand, which has crossed the billion-dollar milestone over the last twelve months. Powers believes that the increasing presence of Hoka in Deckers’ portfolio has had a positive impact on the company’s overall financial and operational performance.

Given their confidence in the long-term strategic plan, Deckers’ board recently approved a significantly increased share repurchase authorization. The company also reaffirmed its full-year fiscal 2023 guidance, projecting net sales between $3.45 billion and $3.50 billion and diluted earnings per share in the range of $17.50 to $18.35 for the twelve months. Deckers Brands remains optimistic about future opportunities and growth prospects.

Useful links:
1. Deckers Brands Official Website
2. Deckers Brands on Yahoo Finance