Deckers sees 20% sales surge in Q1 2018
The outdoor shoe corporation based in Goleta, California, reported double-digit growth across many of its major brands, including a 74.2 percent increase in net sales for its athletic shoe brand, Hoka One One.
For the first financial quarter of 2018, Deckers Outdoor Corp reported a 20.3 percent increase in net sales to $209.7 million, compared to $174.4 million for the same quarter last year. A huge part of that growth was driven by a 74.2 percent increase in net sales from Hoka One One. The athletic shoe brand, which Deckers acquired in 2013, saw sales increase $30.7 million compared to $17.6 million during the same quarter last year.
Also showing strong growth was Deckers highest-earning brand Ugg, which saw net sales increase 24.9 percent to $114.7 million. Slightly weaker was Teva, which still managed an 8.6 percent increase to $37.7 million. Sanuk faired far more poorly, seeing its net sales fall 2 percent to $26.2 million.
Dave Powers, who replaced Angel Martinez as CEO in 2016, was cautiously optimistic about the company’s growth. “While it is still early in the year, we are encouraged by our recent top-line performance," the executive said. "Looking ahead, we believe the product, marketing and distribution strategies we’ve implemented across our brand portfolio, along with the anticipated benefits from our cost savings initiatives, have us well positioned to achieve the operating profit improvement targets we established for fiscal 2018 and longer-term.”
Despite growth across many of its brands for this quarter, looking ahead Deckers expects the second quarter of 2018 to see a 10 percent drop in net sales compared to the same quarter last year. The company expects the decrease in sales as a result of store closures and earlier shipments compared to the first quarter.
Earlier this month, Deckers filed a lawsuit against Gap alleging the retailer copied its Ugg Australia Bailey Button boots. The company has filed similar lawsuits against H&M, J.C. Penney and Target for copying designs from Ugg.
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