Deckers Q3 2024 Earnings Report
Key Takeaways
Deckers Brands announced strong financial results for the third quarter of fiscal year 2024, with record revenue of $1.56 billion and diluted EPS of $15.11. The company raised its full-year revenue guidance to approximately $4.15 billion and diluted EPS guidance to a range of $26.25-$26.50.
Revenue increased by 16% to a record $1.56 billion.
Diluted EPS increased by 44% to a record $15.11.
DTC net sales increased 22.7% to $858.1 million.
UGG brand net sales increased 15.2% to $1.072 billion and HOKA brand net sales increased 21.9% to $429.3 million.
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 February 1, 2024, 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 $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%.
- Diluted earnings per share is now expected to be in the range of $26.25 to $26.50.
Challenges Ahead
- Changes in economic conditions, including consumer confidence and discretionary spending
- Inflationary pressures
- Foreign currency fluctuation
- Geopolitical tensions
- Supply chain disruptions, constraints and related expenses
Revenue & Expenses
Visualization of income flow from segment revenue to net income