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Jun 30, 2023

Deckers Q1 2024 Earnings Report

Deckers reported a strong Q1 2024 with revenue and EPS increases, driven by HOKA brand momentum and strategic focus on DTC and international markets.

Key Takeaways

Deckers Brands reported a 10% increase in revenue to $676 million and a 45% increase in diluted earnings per share to $2.41 for the first quarter of fiscal year 2024. The company has raised its full-year diluted earnings per share guidance to a range of $21.75 to $22.25.

Revenue increased by 10% to $676 million.

Diluted earnings per share increased by 45% to $2.41.

HOKA brand net sales increased by 27.4% to $420.5 million.

Full year diluted earnings per share guidance raised to $21.75-$22.25.

Total Revenue
$276M
Previous year: $614M
-55.1%
EPS
$0.4
Previous year: $0.28
+42.9%
Gross Profit
$346M
Previous year: $295M
+17.5%
Cash and Equivalents
$1.05B
Previous year: $695M
+50.6%
Free Cash Flow
$94.5M
Previous year: -$41.4M
-328.4%
Total Assets
$2.85B
Previous year: $2.51B
+13.3%

Deckers

Deckers

Deckers Revenue by Segment

Forward Guidance

The Company's full fiscal year 2024 outlook is forward-looking in nature, reflecting our expectations as of July 27, 2023, and is subject to significant risks and uncertainties that limit our ability to accurately forecast results.

Positive Outlook

  • Net sales are now expected to be approximately $3.980 billion.
  • Gross margin is still expected to be approximately 52%.
  • SG&A expenses as a percentage of sales are still projected to be approximately 34%.
  • Operating margin is still expected to be approximately 18%.
  • Diluted earnings per share is now expected to be in the range of $21.75 to $22.25.

Challenges Ahead

  • supply chain disruptions, constraints and related expenses
  • labor shortages
  • changes in economic conditions including foreign currency fluctuation, inflationary pressures, consumer confidence and discretionary spending
  • geopolitical tensions
  • Effective tax rate is still expected to be approximately 22% to 23%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income