Deckers raised its full-year guidance on Thursday after reporting another quarter of gains driven by its Hoka brand.
The Goleta, Calif.-based footwear company reported net sales in the first quarter of 2024 increased 10 percent to $675.8 million, compared to $614.5 million the same time last year. Deckers also saw a bump in its direct-to-consumer channel, reporting an increase of 35.3 percent to $250.4 million, compared to $185.1 million in Q1 2022. Wholesale net sales for Q1 were $425.4 million, compared to $429.4 million the same period last year.
By brand, most of the company’s growth in the quarter was driven by Hoka, with net sales at Deckers’ star running brand up 27.4 percent to $420.5 million, compared to $330.0 million the prior year’s first quarter.
Company president and CEO Dave Powers said in a statement on Thursday that Hoka’s continued growth trajectory pushed the company to raise its full-year guidance. “Deckers begins fiscal year 2024 in a position of strength, accelerating towards our outlook for the full year, which has been raised to reflect Hoka brand momentum,” Powers said.
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Deckers now expects net sales for the full fiscal year to be approximately $3.98 billion, with diluted earnings per share in the range of $21.75 to $22.25. This is up from the company’s previous guidance which noted full-year net sales of approximately $3.95 billion, with diluted earnings per share in the range of $21.10 to $21.60.
The company’s other brands did not fare so well in the first quarter, however. Ugg continued its revenue slide, with net sales down 6 percent to $195.5 million, compared to $207.9 million in the same quarter last year.
Teva also reported an 18.8 percent decline to $48.4 million, compared to $59.6 million in Q1 2022, while Sanuk saw a 32.3 percent drop in net sales to $9.6 million, compared to $14.2 million in the same period last year.
Other brands, primarily composed of Koolaburra, saw net sales decrease 33.9 percent in the quarter to $1.8 million, compared to $2.7 million in Q1 2022.
Despite declines in the company’s other brand, Powers added that the company remains “dedicated to delivering results” in alignment with its strategic focus to grow direct-to-consumer and build its presence within international markets.
“Combined with our disciplined brand marketplace management and nimble operating model, this approach underscores our confidence to achieve our increased full-year outlook and drive long-term success for our brands,” Powers said.
