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Sep 30, 2021
Deckers Q2 2022 Earnings Report
Deckers reported an increase in revenue and earnings per share for the second quarter of fiscal year 2022, driven by strong performance from the HOKA and UGG brands, while navigating global supply chain challenges.
Key Takeaways
Deckers Brands reported a 15.8% increase in revenue to $721.9 million for the second quarter of fiscal year 2022. Diluted earnings per share increased to $3.66 compared to $3.58 for the same period last year. The company maintained its fiscal year 2022 revenue outlook and updated its earnings per share outlook to a range of $14.15 to $15.15.
Second Quarter Fiscal 2022 Revenue Increased 15.8% to $721.9 Million
UGG brand net sales increased 8.0% to $448.4 million.
HOKA brand net sales increased 47.0% to $210.4 million.
Fiscal Year 2022 Earnings Per Share Outlook Updated to Range of $14.15 to $15.15
Deckers
Deckers
Deckers Revenue by Segment
Deckers Revenue by Geographic Location
Revenue by Segment
HOKA Brand Revenue
CapyFin.comUGG Brand Revenue
CapyFin.comRevenue by Geographic Location
Domestic Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.com Forward Guidance
Deckers Brands expects net sales to be in the range of $3.01 billion to $3.06 billion, gross margin to be approximately 51.5%, and diluted earnings per share to be in the range of $14.15 to $15.15 for the full fiscal year 2022.
Positive Outlook
- Net sales are still expected to be in the range of $3.01 billion to $3.06 billion.
- Gross margin is now expected to be approximately 51.5%.
- Operating margin is now expected to be in the range of 17.0% to 18.0%.
- Effective tax rate is still expected to be approximately 23.0%.
- Diluted earnings per share is now expected to be in the range of $14.15 to $15.15.
Challenges Ahead
- The Company experienced delays and disruption within its sourcing network related to the COVID-19 pandemic.
- The most significant macro-level supply chain impacts the Company has experienced are extended transit lead times and cost pressures related to container shortages, port congestion, and trucking scarcity that have caused shipping delays and a higher usage of air freight.
- The full effect and duration of disruptions and delays are not yet known, but the Company will continue to monitor the situation closely and is actively working to navigate these pressures.
- Certain facilities are experiencing operational challenges that may cause further delays and cost pressures in future periods.
- The Company's wholesale partners and third-party logistics providers are also experiencing capacity constraints and labor shortages, which are having and may continue to have an adverse effect on the Company's operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income