- FY 2022 REVENUE OF $3.150
BILLION, UP 24% VS. FY 2021; UP 48% VS. FY 2020
- FY 2022 EARNINGS PER SHARE OF $16.26, UP 21% VS. FY 2021; UP 69% VS. FY
2020
- GUIDES FY 2023 REVENUE GROWTH OF 10-11%; EPS RANGE OF
$17.40-$18.25
GOLETA,
Calif., May 19, 2022 /PRNewswire/ -- Deckers
Brands (NYSE: DECK), a global leader in designing, marketing, and
distributing innovative footwear, apparel, and accessories, today
announced financial results for the fourth quarter and full fiscal
year ended March 31, 2022. The
Company also provided its financial outlook for the full fiscal
year ending March 31, 2023.
"Fiscal year 2022 was another record year for Deckers, as we
delivered both revenue and earnings per share growth above twenty
percent," said Dave Powers,
President and Chief Executive Officer. "Over the last two years,
our portfolio of brands has added more than one billion dollars of revenue, while making
progress towards key long-term strategies, and maintaining top-tier
levels of profitability, despite navigating unprecedented
disruption across the global supply chain. I am incredibly proud of
our performance over the last couple of years, but with the power
of our brands and our people, I am even more excited about the
opportunities ahead."
Fourth Quarter Fiscal 2022 Financial Review (Compared to the
Same Period Last Year)
- Net sales increased 31.2% to $736.0 million compared to $561.2 million. On a constant currency basis, net
sales increased 31.7%.
-
- Channel
-
- Wholesale net sales increased 37.6% to $448.8 million compared to $326.1 million.
- Direct-to-Consumer (DTC) net sales increased 22.2% to
$287.2 million compared to
$235.1 million. Comparable DTC net
sales increased 19.3%.
- Geography
-
- Domestic net sales increased 37.4% to $521.0 million compared to $379.2 million.
- International net sales increased 18.2% to $215.1 million compared to $181.9 million.
- Gross margin was 48.7% compared to 53.2%.
- Selling, general, and administrative (SG&A) expenses
were $277.4 million compared to
$244.0 million.
- Operating income was $81.3
million compared to $54.6
million.
- Diluted earnings per share was $2.51 compared to $1.18.
Fourth Quarter Fiscal 2022 Brand Summary (Compared to the
Same Period Last Year)
- UGG® brand net sales increased 24.7% to $374.6 million compared to $300.5 million.
- HOKA® brand net sales increased 59.7% to $283.5 million compared to $177.5 million.
- Teva® brand net sales decreased 8.8% to $54.8 million compared to $60.2 million.
- Sanuk® brand net sales decreased 1.7% to $11.9 million compared to $12.1 million.
- Other brands, primarily composed of Koolaburra®, net sales
increased 2.4% to $11.2 million
compared to $10.9 million.
Full Fiscal Year 2022 Financial Review (Compared to the Same
Period Last Year)
- Net sales increased 23.8% to $3.150 billion compared to $2.546 billion. On a constant currency basis, net
sales increased 23.2%.
-
- Channel
-
- Wholesale net sales increased 31.0% to $1.937 billion compared to $1.479 billion.
- DTC net sales increased 13.8% to $1.214
billion compared to $1.067
billion. Due to the meaningful disruption of our retail
store base for closures during the prior fiscal year, we are not
reporting a comparable DTC sales metric for the fiscal year ended
March 31, 2022.
- Geography
-
- Domestic net sales increased 23.1% to $2.168 billion compared to $1.761 billion.
- International net sales increased 25.3% to $982.5 million compared to $784.2 million.
- Gross margin was 51.0% compared to 54.0%.
- SG&A expenses were $1.043
billion compared to $869.9
million.
- Operating income was $564.7
million compared to $504.2
million.
- Diluted earnings per share was $16.26 compared to $13.47.
Full Fiscal Year 2022 Brand Summary (Compared to the Same
Period Last Year)
- UGG® brand net sales increased 15.4% to $1.982 billion compared to $1.717 billion.
- HOKA® brand net sales increased 56.1% to $891.6 million compared to $571.2 million.
- Teva® brand net sales increased 17.3% to $162.7 million compared to $138.8 million.
- Sanuk® brand net sales increased 3.0% to $43.1 million compared to $41.8 million.
- Other brands net sales decreased 7.5% to $70.9 million compared to $76.7 million.
Balance Sheet (March 31, 2022 as compared to
March 31, 2021)
- Cash and cash equivalents were $843.5
million compared to $1.089
billion.
- Inventories, which include amounts in-transit, were
$506.8 million compared to
$278.2 million.
- The Company had no outstanding borrowings.
Stock Repurchase Program
During the fourth quarter, the Company repurchased approximately
308 thousand shares of its common stock for a total of $90.0 million at an average price paid per share
of $292.51.
During full fiscal year 2022, the Company repurchased
approximately 1.044 million shares of its common stock for a total
of $356.7 million at an average price
paid per share of $341.77. As of
March 31, 2022, the Company had
$454.0 million remaining under
its stock repurchase authorization.
"We have delivered two consecutive years of exceptional revenue
growth, with accelerating increases over the prior year of 23.8%
and 19.4%, for fiscal years 2022 and 2021, respectively," said
Steve Fasching, Chief Financial
Officer. "Despite facing significant incremental costs related to
supply chain disruption, our teams were able to nimbly respond to
these changing market dynamics to manage costs and deliver an
operating margin of 17.9% in fiscal year 2022, at the top end of
our original guidance range. With our in-demand brands, flexible
operating model, and strong balance sheet, Deckers is well
positioned to drive continued top-line growth and high levels of
profitability."
Full Fiscal Year 2023 Outlook for the Twelve Month Period
Ending March 31, 2023
The Company's full fiscal year 2023 outlook is forward-looking
in nature, reflecting our expectations as of May 19, 2022, and
is subject to significant risks and uncertainties that limit our
ability to accurately forecast results. This outlook assumes no
meaningful changes to the Company's business prospects or risks and
uncertainties identified by management that could impact future
results, which include but are not limited to: the impact of the
COVID-19 pandemic on our business and operations, including supply
chain disruptions, constraints and related expenses; labor
shortages; changes in economic conditions, inflationary pressures,
consumer confidence and discretionary spending; and geopolitical
tensions.
- Net sales are expected to be in the range of $3.45 billion to $3.50
billion.
- Gross margin is expected to be approximately 51.5%.
- SG&A expenses as a percentage of sales are projected to be
approximately 34%.
- Operating margin is expected to be in the range of 17.5% to
18.0%.
- Effective tax rate is expected to be approximately 22% to
23%.
- Diluted earnings per share is expected to be in the range of
$17.40 to $18.25.
- The earnings per share guidance does not assume any impact from
additional share repurchases.
Non-GAAP Financial Measures
In certain instances the Company may present financial measures
that were not prepared in accordance with generally accepted
accounting principles in the United
States (non-GAAP financial measures), including constant
currency, to provide information that may assist investors in
understanding its financial results and assessing its prospects for
future performance. The Company believes these non-GAAP financial
measures are important indicators of its operating performance
because they exclude items that are unrelated to, and may not be
indicative of, its core operating results.
The non-GAAP financial measures presented by the Company may not
necessarily be comparable to similarly titled measures of other
companies and may not be appropriate measures for comparing the
performance of other companies relative to Deckers. For example, in
order to calculate constant currency information, the Company
calculates the current period financial information using the
foreign currency exchange rates that were in effect during the
previous comparable period, excluding the effects of foreign
currency exchange rate hedges and remeasurements in the
consolidated financial statements. Further, the Company reports
comparable DTC sales on a constant currency basis for DTC
operations that were open throughout the current and prior
reporting periods, and may adjust prior reporting periods to
conform to current year accounting policies. These non-GAAP
financial measures are not intended to represent, and should not be
considered to be more meaningful measures than, or alternatives to,
measures of operating performance as determined in accordance with
GAAP. To the extent the Company utilizes such non-GAAP financial
measures in the future, it expects to calculate them using a
consistent method from period to period.
Conference Call Information
The Company's conference call to review the results for the
fourth quarter and full fiscal year 2022 will be broadcast live
today, Thursday, May 19, 2022, at 4:30
pm Eastern Time and hosted at ir.deckers.com. You can
access the broadcast by clicking on the link within the "Webcast"
box at the top of the page. A replay of the broadcast will be
available for at least 30 days following the conference call and
can be accessed under the "Quarterly Earnings" section of the
"Financials" tab at the aforementioned website.
About Deckers Brands
Deckers Brands is a global leader in designing, marketing, and
distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and
high-performance activities. The Company's portfolio of brands
includes UGG®, HOKA®, Teva®, Sanuk®, and Koolaburra®. Deckers
Brands products are sold in more than 50 countries and territories
through select department and specialty stores, Company-owned and
operated retail stores, and select online stores, including
Company-owned websites. Deckers Brands has over 40 years of history
building niche footwear brands into lifestyle market leaders
attracting millions of loyal consumers globally. For more
information, please visit www.deckers.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, which statements are
subject to considerable risks and uncertainties. Forward-looking
statements include all statements other than statements of
historical fact contained in this press release, including
statements regarding our projected financial results, including net
sales, gross margin, SG&A expenses, operating margin,
inventory, effective tax rate, and diluted earnings per share; the
disruptions and impacts caused by the COVID-19 pandemic on our
business and operations; the strength of our brands; our ability to
drive future growth and profitability; and our potential repurchase
of shares. We have attempted to identify forward-looking statements
by using words such as "anticipate," "believe," "could,"
"estimate," "expected," "intend," "may," "plan," "predict,"
"project," "should," "will," or "would," and similar expressions or
the negative of these expressions.
Forward-looking statements represent our management's current
expectations and predictions about trends affecting our business
and industry and are based on information available as of the time
such statements are made. Although we do not make forward-looking
statements unless we believe we have a reasonable basis for doing
so, we cannot guarantee their accuracy or completeness.
Forward-looking statements involve numerous known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements predicted,
assumed or implied by the forward-looking statements. Some of the
risks and uncertainties that may cause our actual results to
materially differ from those expressed or implied by these
forward-looking statements are described in the section entitled
"Risk Factors" in our Annual Report on Form 10-K for the fiscal
year ended March 31, 2021, as well as
in our Quarterly Reports on Form 10-Q and other filings with the
Securities and Exchange Commission.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. Except as required by
applicable law or the listing rules of the New York Stock Exchange,
we expressly disclaim any intent or obligation to update any
forward-looking statements, or to update the reasons actual results
could differ materially from those expressed or implied by these
forward-looking statements, whether to conform such statements to
actual results or changes in our expectations, or as a result of
the availability of new information. In addition, readers are
cautioned that we may make future changes to our business and
operations in response to the challenges and impacts of the
COVID-19 pandemic, or in response to other business developments,
which changes may be inconsistent with our prior forward-looking
statements, and which may not be disclosed in future public
announcements.
DECKERS OUTDOOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(dollar and share data
amounts in thousands, except per share data)
|
|
|
Three Months Ended March 31,
|
|
Years Ended March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net sales
|
$
736,007
|
|
$
561,188
|
|
$ 3,150,339
|
|
$ 2,545,641
|
Cost of sales
|
377,268
|
|
262,538
|
|
1,542,788
|
|
1,171,551
|
Gross profit
|
358,739
|
|
298,650
|
|
1,607,551
|
|
1,374,090
|
Selling, general, and administrative expenses
|
277,441
|
|
244,005
|
|
1,042,844
|
|
869,885
|
Income from operations
|
81,298
|
|
54,645
|
|
564,707
|
|
504,205
|
Other (income) expense, net
|
(1,052)
|
|
1,579
|
|
69
|
|
2,691
|
Income before income taxes
|
82,350
|
|
53,066
|
|
564,638
|
|
501,514
|
Income tax expense
|
13,531
|
|
19,608
|
|
112,689
|
|
118,939
|
Net income
|
68,819
|
|
33,458
|
|
451,949
|
|
382,575
|
Other comprehensive (loss)
income
|
|
|
|
|
|
|
|
Unrealized (loss) gain on cash flow hedges, net of
tax
|
(974)
|
|
726
|
|
—
|
|
—
|
Foreign currency translation (loss) gain
|
(4,824)
|
|
(6,179)
|
|
(8,212)
|
|
8,816
|
Total other comprehensive
(loss) income
|
(5,798)
|
|
(5,453)
|
|
(8,212)
|
|
8,816
|
Comprehensive income
|
$
63,021
|
|
$
28,005
|
|
$
443,737
|
|
$
391,391
|
Net income per share
|
|
|
|
|
|
|
|
Basic
|
$
2.54
|
|
$
1.19
|
|
$
16.43
|
|
$
13.64
|
Diluted
|
$
2.51
|
|
$
1.18
|
|
$
16.26
|
|
$
13.47
|
Weighted-average common shares
outstanding
|
|
|
|
|
|
|
|
Basic
|
27,134
|
|
28,057
|
|
27,508
|
|
28,055
|
Diluted
|
27,374
|
|
28,374
|
|
27,789
|
|
28,406
|
DECKERS OUTDOOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(dollar amounts in
thousands)
|
|
|
March 31, 2022
|
|
March 31, 2021
|
ASSETS
|
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
$
843,527
|
|
$
1,089,361
|
Trade accounts receivable,
net
|
302,688
|
|
215,718
|
Inventories
|
506,796
|
|
278,242
|
Other current assets
|
99,117
|
|
67,478
|
Total current assets
|
1,752,128
|
|
1,650,799
|
Property and equipment,
net
|
222,449
|
|
206,210
|
Operating lease
assets
|
182,459
|
|
186,991
|
Other noncurrent
assets
|
175,214
|
|
123,705
|
Total assets
|
$
2,332,250
|
|
$
2,167,705
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current liabilities
|
|
|
|
Trade accounts
payable
|
327,487
|
|
231,632
|
Operating lease
liabilities
|
50,098
|
|
46,768
|
Other current
liabilities
|
164,099
|
|
189,968
|
Total current liabilities
|
541,684
|
|
468,368
|
Long-term operating lease
liabilities
|
171,972
|
|
176,274
|
Other long-term
liabilities
|
79,769
|
|
78,838
|
Total long-term liabilities
|
251,741
|
|
255,112
|
Total stockholders' equity
|
1,538,825
|
|
1,444,225
|
Total liabilities and stockholders'
equity
|
$
2,332,250
|
|
$
2,167,705
|
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SOURCE Deckers Brands