Deckers Q4 2022 Earnings Report
Key Takeaways
Deckers Brands reported a strong Q4 2022, with net sales increasing by 31.2% to $736.0 million and diluted earnings per share rising to $2.51. The company's performance was driven by growth in both wholesale and direct-to-consumer channels, as well as strong sales from the UGG and HOKA brands.
Net sales increased by 31.2% to $736.0 million.
Wholesale net sales increased by 37.6% to $448.8 million.
Direct-to-Consumer (DTC) net sales increased by 22.2% to $287.2 million.
Diluted earnings per share increased to $2.51, compared to $1.18 in the same period last year.
Deckers
Deckers
Deckers Revenue by Segment
Forward Guidance
The Company's full fiscal year 2023 outlook projects net sales to be in the range of $3.45 billion to $3.50 billion and diluted earnings per share in the range of $17.40 to $18.25.
Positive Outlook
- Net sales are expected to be in the range of $3.45 billion to $3.50 billion.
- Gross margin is expected to be approximately 51.5%.
- Operating margin is expected to be in the range of 17.5% to 18.0%.
- Effective tax rate is expected to be approximately 22% to 23%.
- Diluted earnings per share is expected to be in the range of $17.40 to $18.25.
Challenges Ahead
- The outlook assumes no meaningful changes to the Company's business prospects or risks and uncertainties identified by management that could impact future results.
- The outlook is subject to the impact of the COVID-19 pandemic on our business and operations, including supply chain disruptions, constraints and related expenses.
- Labor shortages may negatively impact the company.
- Changes in economic conditions, inflationary pressures, consumer confidence and discretionary spending could impact results.
- Geopolitical tensions may impact the company.
Revenue & Expenses
Visualization of income flow from segment revenue to net income