Deckers Boosts Sales by 12% in First Half, Maintains Cautious Outlook

Deckers continues to grow, with Hoka as the main driver, although it is lowering its expectations for the full year. The U.S. group sold 12.1% more during the first half of the year, to $2.395 billion, compared with $2.13 billion in the same period last year. In the first half of the year, profit increased by 13.8% to $407.3 billion.

In the second quarter, the American group’s sales rose by 9.1% to $1.43 billion. For its part, Deckers posted a profit 10.7% higher than in the same period last year, up to $268.1 million, the company said in a statement on Friday.

Hoka, Deckers’ main claim to fame, has been relieved in the second quarter by Ugg’s proposal. Hoka posted 11.1% more revenue in the second quarter, reaching sales of $634.1 million, compared with $507.9 million in the same period last year.

Ugg’s sales grew slightly less, by 10.1%, but its turnover reached $759.6 million, compared with $689.9 million in the previous year. The other brands’ sales fell by 26.5% to $37.2 million, compared with $50.2 million in the previous year.

Hoka grew by 11.1% in the second quarter and Ugg by 10.1%

By channel, wholesale was up 13.4% to $1,036 million, up from $913.7 million. Owned stores, however, sold 0.8% less to $394.6 million, compared with $397.7 million in the same period last year.

In the United States, Deckers’ home market, sales fell by 1.7% to $839.5 million ($853.9 million in the same period last year). However, international sales grew by 29.3%, offsetting the U.S. performance, to $591.3 million.

Despite the good results, the company expects to close its full fiscal year with sales of $5.35 billion, with Hoka, its flagship brand, growing between 11% and 13%. For its part, Ugg would be growing between 3% and 6%. “The company is subject to risks and uncertainties that limit its ability to accurately forecast results,“ the statement said. Gross margin would stand at 56%.

With more than fifty years of history, Deckers has a portfolio of three brands: Ugg, Hoka and Teva. It distributes to more than fifty countries through multi-brand and own stores, as well as through marketplaces and its own store.