Ugg and Hoka Propel Deckers to Stellar Quarterly Earnings and Sales

Shares of Deckers Outdoor Corp. are climbing in after-hours trading following the release of stellar fourth-quarter financial results.

For the three months ended March 31, the group posted an income of $54.6 million, or earnings of $1.18 per share, compared with the prior year period’s income of $16.7 million, or earnings of 57 cents per share. Wall Street had predicted earnings of 64 cents per share. Revenues rose 49.7% to $561.2 million, compared with consensus bets of $437.09 million.

As of 4:45 p.m. ET, its stock was up more than 6% to $331.

“Fiscal 2021 was an exceptional year for Deckers,” president and CEO Dave Powers said in a statement. “While our fourth quarter benefited from certain macro tailwinds, as well as lapping last year’s disruption, the health of our brands, strength of our omni-channel organization, and our digitally focused long-term strategies provided the foundation for success over the past year, accelerating our growth trajectory.”

During the period, Ugg — which continues to yield the bulk of revenues for Deckers — saw a 53.1% jump in sales to $300.5 million, while Hoka One One recorded a 74.2% gain to $177.5 million. Both brands appear to have benefited from the continued COVID-19-induced shift to at-home and active lifestyles.

Similarly, Teva increased 1% to $60.2 million, while other brands — primarily composed of Koolaburra — surged a whopping 178.5% to $10.9 million. Sanuk, however, declined 8.8% to $12.1 million.

Still, Deckers notched gains across channels and geographies: Its wholesale business rose 41.4% to $326.1 million, while direct-to-consumer sales improved 63% to $235.1 million. DTC comps also shot up 76.3% over the same period last year. What’s more, domestic revenues advanced 64.3% to $379.2 million, and its international business noted a 26.2% hike to $181.9 million.

At the end of the quarter, the Goleta, Calif.-based company had cash and equivalents of $1.09 billion. It also provided an outlook for the 2022 fiscal year: Sales are expected to be in the range of $2.95 billion to $3 billion, while earnings per share are predicted between $14.05 and $14.65.

“We are excited for the year ahead as we invest in the long-term evolution of Deckers to drive sustainable top- and bottom-line growth,” added Powers.

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