- THIRD QUARTER FY 2024 REVENUE INCREASED 16% TO A RECORD
$1.56 BILLION
- THIRD QUARTER FY 2024 DILUTED EPS INCREASED 44% TO A RECORD
$15.11
- FY 2024 REVENUE GUIDANCE RAISED TO APPROXIMATELY
$4.15 BILLION, 14% ABOVE PRIOR
YEAR
- FY 2024 DILUTED EPS GUIDANCE RAISED TO RANGE OF $26.25-$26.50,
APPROXIMATELY 36% ABOVE PRIOR YEAR
GOLETA,
Calif., Feb. 1, 2024 /PRNewswire/ -- Deckers
Brands (NYSE: DECK), a global leader in designing, marketing, and
distributing innovative footwear, apparel, and accessories, today
announced financial results for the third fiscal quarter ended
December 31, 2023. The Company also provided an update to its
financial outlook for the full fiscal year ending March 31, 2024.
"Our brands delivered Deckers' largest quarter in history, with
record revenue and earnings as both HOKA and UGG drove exceptional
performance in the quarter, led by our DTC channel and high levels
of full price selling," said Dave
Powers, President and Chief Executive Officer. "Global gains
in awareness, combined with elevated consumer connections and
innovative product offerings, continued to drive unparalleled
demand for our brands. This, coupled with our disciplined operating
approach, dedicated focus on marketplace management and fortified
balance sheet, puts Deckers in a position of strength as we enter
our last fiscal quarter of 2024. We believe HOKA and UGG are two of
the healthiest brands in the industry and we remain focused on
executing against our strategic initiatives to drive long-term
future success."
Third Quarter Fiscal 2024 Financial Review (Compared
to the Same Period Last Year)
- Net sales increased 16.0% to $1.560 billion compared to $1.346 billion. On a constant currency basis, net
sales increased 15.1%.
- Channel
- Direct-to-Consumer (DTC) net sales increased 22.7% to
$858.1 million compared to
$699.3 million. DTC comparable net
sales increased 21.8%.
- Wholesale net sales increased 8.6% to $702.2 million compared to $646.3 million.
- Geography
- Domestic net sales increased 15.6% to $1.048 billion compared to $906.8 million.
- International net sales increased 16.7% to $511.9 million compared to $438.8 million.
- Gross margin was 58.7% compared to 53.0%.
- Selling, general, and administrative (SG&A) expenses
were $428.7 million compared to
$349.9 million.
- Operating income was $487.9
million compared to $362.7
million.
- Diluted earnings per share was $15.11 compared to $10.48.
Third Quarter Fiscal 2024 Brand Summary (Compared
to the Same Period Last Year)
- UGG® brand net sales increased 15.2% to $1.072 billion compared to $930.4 million.
- HOKA® brand net sales increased 21.9% to $429.3 million compared to $352.1 million.
- Teva® brand net sales decreased 16.2% to $25.6 million compared to $30.5 million.
- Sanuk® brand net sales decreased 28.9% to $4.0 million compared to $5.6 million.
- Other brands, primarily composed of Koolaburra®, net sales
increased 10.0% to $29.6 million
compared to $26.9 million.
Balance Sheet (December 31, 2023 as compared to
December 31, 2022)
- Cash and cash equivalents were $1.651
billion compared to $1.058
billion.
- Inventories were $539.0 million
compared to $723.4 million.
- The Company had no outstanding borrowings.
Stock Repurchase Program
During the third fiscal quarter, the Company repurchased
approximately 196 thousand shares of its common stock for a total
of $99.7 million at a weighted
average price paid per share of $507.95. As of December
31, 2023, the Company had approximately $1.046 billion remaining under
its stock repurchase authorization.
Full Fiscal Year 2024 Outlook for the Twelve Month Period
Ending March 31, 2024
The Company's full fiscal year 2024 outlook is forward-looking
in nature, reflecting our expectations as of February 1, 2024,
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: changes in economic
conditions, including consumer confidence and discretionary
spending, inflationary pressures, and foreign currency fluctuation;
geopolitical tensions; and supply chain disruptions, constraints
and related expenses.
- Net sales are now expected to be approximately $4.15 billion.
- Gross margin is now expected to be approximately 54.5%.
- SG&A expenses as a percentage of net sales are now expected
to be approximately 34.5%.
- Operating margin is now expected to be approximately 20%.
- Effective tax rate is now expected to be approximately
22%.
- Diluted earnings per share is now expected to be in the range
of $26.25 to $26.50.
- The earnings per share guidance does not assume any impact from
potential future 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 condensed
consolidated financial statements. Further, the Company reports DTC
comparable net 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
third quarter fiscal year 2024 will be broadcast live today,
Thursday, February 1, 2024, 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 50 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,
inventories, effective tax rate, and diluted earnings per share;
consumer confidence and discretionary spending; the strength of our
brands and demand for our products; our ability to drive future
growth and profitability; our ability to execute on our long-term
strategies and objectives; and our potential repurchase of shares.
We have attempted to identify forward-looking statements by using
words such as "anticipate," "believe," "estimate," "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, 2023, 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.
DECKERS OUTDOOR
CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(dollar and share data
amounts in thousands, except per share data)
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales
|
$
1,560,307
|
|
$
1,345,640
|
|
$ 3,328,005
|
|
$ 2,835,715
|
Cost of
sales
|
643,738
|
|
633,111
|
|
1,481,993
|
|
1,406,513
|
Gross
profit
|
916,569
|
|
712,529
|
|
1,846,012
|
|
1,429,202
|
Selling, general, and
administrative expenses
|
428,670
|
|
349,869
|
|
1,062,760
|
|
882,370
|
Income from
operations
|
487,899
|
|
362,660
|
|
783,252
|
|
546,832
|
Total other income,
net
|
(11,154)
|
|
(2,644)
|
|
(31,482)
|
|
(4,392)
|
Income before income
taxes
|
499,053
|
|
365,304
|
|
814,734
|
|
551,224
|
Income tax
expense
|
109,134
|
|
86,642
|
|
182,716
|
|
126,189
|
Net
income
|
389,919
|
|
278,662
|
|
632,018
|
|
425,035
|
Total other
comprehensive income (loss), net of tax
|
7,077
|
|
12,086
|
|
(3,339)
|
|
(15,321)
|
Comprehensive
income
|
$
396,996
|
|
$
290,748
|
|
$
628,679
|
|
$
409,714
|
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
|
Basic
|
$
15.19
|
|
$
10.55
|
|
$
24.35
|
|
$
16.00
|
Diluted
|
$
15.11
|
|
$
10.48
|
|
$
24.20
|
|
$
15.90
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
25,664
|
|
26,418
|
|
25,953
|
|
26,570
|
Diluted
|
25,811
|
|
26,586
|
|
26,114
|
|
26,740
|
DECKERS OUTDOOR
CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
(dollar amounts in
thousands)
|
|
|
December 31,
2023
|
|
March 31,
2023
|
ASSETS
|
|
|
(AUDITED)
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,650,802
|
|
$
981,795
|
Trade accounts
receivable, net
|
331,677
|
|
301,511
|
Inventories
|
538,963
|
|
532,852
|
Other current
assets
|
127,412
|
|
94,095
|
Total current
assets
|
2,648,854
|
|
1,910,253
|
Property and equipment,
net
|
300,815
|
|
266,679
|
Operating lease
assets
|
232,179
|
|
213,302
|
Other noncurrent
assets
|
165,611
|
|
165,969
|
Total
assets
|
$
3,347,459
|
|
$
2,556,203
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
$
507,161
|
|
$
265,605
|
Operating lease
liabilities
|
51,124
|
|
50,765
|
Other current
liabilities
|
369,157
|
|
181,010
|
Total current
liabilities
|
927,442
|
|
497,380
|
Long-term operating
lease liabilities
|
222,867
|
|
195,723
|
Other long-term
liabilities
|
92,960
|
|
97,367
|
Total long-term
liabilities
|
315,827
|
|
293,090
|
Total stockholders'
equity
|
2,104,190
|
|
1,765,733
|
Total liabilities
and stockholders' equity
|
$
3,347,459
|
|
$
2,556,203
|
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SOURCE Deckers Brands