Hoka One One Drives Parent Deckers Brands to Q3 Earnings, Sales Beat
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Sales at Hoka One One keep soaring.
The athletic brand helped drive parent Deckers Outdoor Corp. to a third-quarter earnings and sales beat. For the period ended Dec. 31, the Goleta, Calif.-based company posted Q3 earnings of $7.41 per share, surpassing consensus bets of $6.55 a share. Sales also jumped 7.4% to $938.74 million, compared with Wall Street estimates of $900.43 million.
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An hour after market close, Deckers’ stock was up 4.15% to $184.75. The firm raised its guidance for the full year, now expecting sales in the range of $2.15 billion to $2.16 billion, versus the previously estimated $2.115 billion to $2.14 billion. Diluted earnings per share are forecast to be in the range of $9.40 to $9.50.
“Our third-quarter results were driven by three of our brands experiencing record levels of quarterly revenue, resulting in an updated outlook that reflects another year of strong top-line growth and earnings expansion,” President and CEO Dave Powers said in a statement.
During the third quarter, wholesale revenues improved 8.9% to $525.1 million, and direct-to-consumer sales advanced 5.6% to $413.7 million. Meanwhile, DTC comps rose 4.7% over the same period last year. While international revenues decreased 2.6% to $293.1 million, domestic sales in the same period gained 12.7% to $645.7 million.
Hoka One One, which outshone sister labels Ugg, Teva and Sanuk, reported sales that shot up 63.6% to $93.1 million. In the past year alone, the sneaker label has been spotted on a growing roster of celebrities and style influencers, including Pippa Middleton, Reese Witherspoon and Winnie Harlow. It also debuted highly anticipated collaborations with labels like Opening Ceremony and Outdoor Voices.
Ugg, however, still raked in the lion’s share of Deckers’ revenues, which increased 2.6% to $781.1 million. Teva, on the other hand, saw sales drop 25.1% to $17.2 million, while Sanuk noted a 34.5% loss to $8.5 million.
“Heading into the fourth quarter, our brands are intent on maintaining the momentum seen throughout this fiscal year,” Powers added, “as we are planning continued investment in consumer engagement opportunities and compelling product introductions.”
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