US apparel firm Deckers Q3FY22 sales up 10.2% to $1.188 billion

The net sales of Deckers Brands has increased 10.2 per cent in the third quarter (Q3) of fiscal 2022 to $1.188 billion, compared to $1.078 billion for the same period last year. On a constant currency basis, net sales increased 9.7 per cent. For the reported quarter, gross margin was 52.3 per cent, compared to 57.0 per cent for the same period last year.

“Our portfolio of brands delivered Deckers’ largest quarter in history, with balanced growth among our direct-to-consumer and wholesale channels and across multiple geographies,” said Dave Powers, president and chief executive officer. “We believe HOKA and UGG are two of the strongest brands in the footwear industry, which are complimented by our strong operating model and fortified balance sheet. While we have continued to experience unprecedented demand for our brands, we are still navigating a challenging supply chain and pandemic environment. Even with these headwinds, I have great confidence in our organisation and its ability to deliver another impressive year while positioning the company for long-term success.”

The company continues to assess and modify its operations in response to the COVID-19 pandemic. The company will continue to review expert agency guidelines, as well as information from health officials and local authorities, to determine the appropriate scope of operations and allocation of resources necessary to navigate this dynamic and unprecedented environment.

The net sales of Deckers Brands has increased 10.2 per cent in the third quarter (Q3) of fiscal 2022 to $1.188 billion, compared to $1.078 billion for the same period last year. On a constant currency basis, net sales increased 9.7 per cent. For the reported quarter, gross margin was 52.3 per cent, compared to 57.0 per cent for the same period last year.

The company maintains a network of strategic sourcing partners which includes material vendors and third-party manufacturers. The company has experienced disruption and delays within its sourcing network related to the COVID-19 pandemic. While the company is working to mitigate these pressures where possible, including activities to scale production in support of its growing brands, the company may continue to experience certain disruption, delays, and/or capacity constraints related to the ongoing pandemic.

For fiscal 2022, the company expects net sales to be in the range of $3.03 billion to $3.06 billion. Gross margin is now likely to be at or slightly below 51.5 per cent.

Fibre2Fashion News Desk (RR)