Deckers Q4 2023 Earnings Report
Key Takeaways
Deckers Brands reported a 7.5% increase in net sales to $791.6 million for the fourth quarter of fiscal year 2023. Diluted earnings per share increased to $3.46 compared to $2.51 for the same period last year. The HOKA brand was a significant driver of growth, while the UGG brand experienced a decline in net sales.
Net sales increased by 7.5% to $791.6 million.
HOKA brand net sales increased by 40.3% to $397.7 million.
UGG brand net sales decreased by 16.1% to $314.3 million.
Diluted earnings per share increased to $3.46 compared to $2.51.
Deckers
Deckers
Deckers Revenue by Segment
Forward Guidance
The Company's full fiscal year 2024 outlook projects net sales of approximately $3.950 billion and diluted earnings per share in the range of $21.10 to $21.60.
Positive Outlook
- Net sales are expected to be approximately $3.950 billion.
- Gross margin is expected to be approximately 52%.
- SG&A expenses as a percentage of sales are projected to be approximately 34%.
- Operating margin is expected to be approximately 18%.
- Effective tax rate is expected to be approximately 22% to 23%.
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
- The earnings per share guidance does not assume any impact from potential future share repurchases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income