Deckers sees record third-quarter revenue driven by Ugg, Hoka One One and e-commerce

By

Gabriella Lacombe

Published
Feb 8, 2021

Deckers Brands, parent company of brands like Ugg, Hoka One One and Teva, saw a record third-quarter revenue increase pushed by success from its Ugg brand and a drive in e-commerce. 

For the quarter ended December 31,2020, the company's net sales increased 14.8% to $1.078 billion compared to $938.7 million for the same period last year. Meanwhile net sales increased 13.8% on a constant currency basis. Earnings per share increased 26% to $8.99.

Third-quarter net sales for Ugg—which recently announced a high profile partnership with Telfar's Telfar Clemens—increased 12.2% to $876.8 million compared to $781.1 million for the same period last year, while Hoka One One, another of the company's top performers for the quarter, saw net sales increase by 52.1% to $141.6 million compared to $93.1 million year prior. 

Net sales for Teva, which debuted a new collaboration with New York designer Anna Sui earlier this month, decreased 8.7% to $15.7 million compared to $17.2 million for the same period last year.

Net sales for footwear brand Sanuk decreased 17.3% to $7 million compared to $8.5 million year prior. 

Other brands net sales, primarily composed of Ugg's sister brand, Koolaburra, decreased 5.5% to $36.7 million, compared to $38.9 million for the same period last year, Deckers said. 

Wholesale net sales for the third quarter increased 6.2% to $557.9 million, compared to $525.1 million year prior; DTC net sales for the third quarter increased 25.7% to $519.9 million, compared to $413.7 million year prior; and DTC comparable sales increased 33.8% over the same period last year.

"Our record third-quarter performance was propelled by demand across the Ugg brand's diversified product offering and the continued global expansion of the Hoka One One brand," said Dave Powers, president and chief executive officer, in a press release. 

"The performance of our brands was primarily driven by our robust e-commerce engine and the resilience displayed by our teams to overcome significant operational and macro challenges related to the pandemic. With our strong portfolio of brands, stable operating model, and powerful balance sheet, Deckers is well positioned for continued success."

Deckers said approximately 75% of its global stores were open for the entire third quarter.

Domestic net sales for the quarter increased 19.3% to $770.5 million compared to $645.7 million for the same period last year, while international sales increased 4.8% to $307.2 million up from $293.1 million last year.

The company's cash and cash equivalents were reported at $1.157 billion. 

During the third quarter, the company did not repurchase any shares of its common stock. Deckers said that while it had to pause share repurchase activity at the onset of the Covid-19 pandemic, it intends to recommence share repurchase under the existing outstanding authorization in future periods.

As the pandemic continues, the company said it will not be providing full year guidance for fiscal year 2021.

"The company continues to modify and evolve its operations in response to the Covid-19 pandemic," Deckers said.

"The company will continue to review expert agency guidelines, as well as information from health officials and local authorities, while assessing and evolving the appropriate scope of operations and allocation of resources necessary to navigate this dynamic and unprecedented environment."