- FY 2024 REVENUE INCREASED 18% TO A RECORD $4.29 BILLION
- FY 2024 DILUTED EPS INCREASED 51% TO A RECORD $29.16
- GUIDES FY 2025 REVENUE GROWTH OF APPROX. 10%; EPS RANGE OF
$29.50-$30.00
GOLETA,
Calif., May 23, 2024 /PRNewswire/ -- Deckers
Brands (NYSE: DECK), a global leader in designing, marketing, and
distributing innovative footwear, apparel, and accessories, today
announced financial results for the fourth fiscal quarter and full
fiscal year ended March 31, 2024. The Company also provided
its financial outlook for the full fiscal year ending
March 31, 2025.
"Deckers achieved record results during fiscal year 2024, as we
delivered revenue growth of 18% and increased earnings per
share by 51%, reflecting a continued dedication to maintain
exceptional levels of profitability as our brands scale," said
Dave Powers, President and Chief
Executive Officer. "HOKA and UGG remain two of the most admired and
well-positioned brands in the marketplace, each with a robust
innovation product pipeline designed to win with global consumers.
Looking forward, our talented teams are highly motivated to
continue driving towards the long-term opportunities of these
iconic brands."
Fourth Quarter Fiscal 2024 Financial Review
(Compared to the Same Period Last Year)
- Net sales increased 21.2% to $959.8 million compared to $791.6 million. On a constant currency basis, net
sales increased 21.1%.
- Channel
- Direct-to-Consumer (DTC) net sales increased 21.0% to
$415.2 million compared to
$343.1 million. DTC comparable net
sales increased 20.5%.
- Wholesale net sales increased 21.4% to $544.6 million compared to $448.4 million.
- Geography
- Domestic net sales increased 19.4% to $647.7 million compared to $542.4 million.
- International net sales increased 25.2% to $312.0 million compared to $249.1 million.
- Gross margin was 56.2% compared to 50.0%.
- Selling, general, and administrative (SG&A) expenses
were $395.2 million compared to
$290.2 million.
- Operating income was $144.3
million compared to $105.9
million.
- Diluted earnings per share was $4.95 compared to $3.46.
Fourth Quarter Fiscal 2024 Brand Summary
(Compared to the Same Period Last Year)
- HOKA® brand net sales increased 34.0% to $533.0 million compared to $397.7 million.
- UGG® brand net sales increased 14.9% to $361.3 million compared to $314.3 million.
- Teva® brand net sales decreased 15.6% to $53.0 million compared to $62.8 million.
- Sanuk® brand net sales decreased 39.1% to $6.5 million compared to $10.7 million.
- Other brands, primarily composed of Koolaburra®, net sales were
approximately flat at $6.0
million.
Full Fiscal Year 2024 Financial Review (Compared to the Same
Period Last Year)
- Net sales increased 18.2% to $4.288 billion compared to $3.627 billion. On a constant currency basis, net
sales increased 17.9%.
- Channel
- DTC net sales increased 26.5% to $1.855
billion compared to $1.467
billion. DTC comparable net sales increased 25.4% over the
same period last year.
- Wholesale net sales increased 12.6% to $2.432 billion compared to $2.161 billion.
- Geography
- Domestic net sales increased 16.8% to $2.864 billion compared to $2.451 billion.
- International net sales increased 21.1% to $1.424 billion compared to $1.176 billion.
- Gross margin was 55.6% compared to 50.3%.
- SG&A expenses were $1.458 billion compared to $1.173 billion.
- Operating income was $927.5
million compared to $652.8
million.
- Diluted earnings per share was $29.16 compared to $19.37.
Full Fiscal Year 2024 Brand Summary (Compared to the Same
Period Last Year)
- HOKA® brand net sales increased 27.9% to $1.807 billion compared to $1.413 billion.
- UGG® brand net sales increased 16.1% to $2.239 billion compared to $1.929 billion.
- Teva® brand net sales decreased 18.9% to $148.5 million compared to $183.1 million.
- Sanuk® brand net sales decreased 33.0% to $25.4 million compared to $38.0 million.
- Other brands, primarily composed of Koolaburra®, net sales
increased 5.9% to $67.9 million
compared to $64.1 million.
Balance Sheet (March 31, 2024 as compared to
March 31, 2023)
- Cash and cash equivalents were $1.502
billion compared to $981.8
million.
- Inventories were $474.3 million
compared to $532.9 million.
- The Company had no outstanding borrowings.
Stock Repurchase Program
During the fourth fiscal quarter, the Company repurchased
approximately 119 thousand shares of its common stock for a total
of $104.3 million at a weighted
average price paid per share of $875.01.
During the full fiscal year 2024, the Company repurchased
approximately 715 thousand shares of its common stock for a total
of $414.9 million at a weighted
average price paid per share of $580.44.
As of March 31, 2024, the Company
had approximately $941.7 million
remaining under its stock
repurchase authorization.
CFO Commentary
"Deckers has grown revenue at a 19% CAGR over the past four
years, consecutively delivering a double-digit revenue increase
each year, while at the same time more than tripling earnings per
share," said Steve Fasching, Chief
Financial Officer. "Our record results demonstrate the exceptional
demand for our brands and the strength of Deckers' nimble operating
model, delivering industry leading financial performance. As we
continue to build an exciting future for Deckers, we remain
committed to making the necessary investments to maintain the
momentum of our brands."
Full Fiscal Year 2025 Outlook for the Twelve Month Period
Ending March 31, 2025
The Company's full fiscal year 2025 outlook is forward-looking
in nature, reflecting our expectations as of May 23, 2024, and
is subject to significant risks and uncertainties that limit our
ability to accurately forecast results. This outlook assumes no
meaningful changes to the Company's business prospects or risks and
uncertainties identified by management that could impact future
results, which include but are not limited to: changes in economic
conditions, including consumer confidence and discretionary
spending, inflationary pressures, and foreign currency fluctuation;
geopolitical tensions; and supply chain disruptions, constraints
and related expenses.
- Net sales are expected to increase approximately 10% to
$4.7 billion.
- Gross margin is expected to be approximately 53.5%.
- SG&A expenses as a percentage of net sales are expected to
be approximately 34%.
- Operating margin is expected to be approximately 19.5%.
- Effective tax rate is expected to be in the range of 22% to
23%.
- Diluted earnings per share is expected to be in the range of
$29.50 to $30.00.
- The earnings per share guidance does not assume any impact from
potential future share repurchases.
Non-GAAP Financial Measures
In certain instances the Company may present financial measures
that were not prepared in accordance with generally accepted
accounting principles in the United
States (non-GAAP financial measures), including constant
currency, to provide information that may assist investors in
understanding its financial results and assessing its prospects for
future performance. The Company believes these non-GAAP financial
measures are important indicators of its operating performance
because they exclude items that are unrelated to, and may not be
indicative of, its core operating results.
The non-GAAP financial measures presented by the Company may not
necessarily be comparable to similarly titled measures of other
companies and may not be appropriate measures for comparing the
performance of other companies relative to Deckers. For example, in
order to calculate constant currency information, the Company
calculates the current period financial information using the
foreign currency exchange rates that were in effect during the
previous comparable period, excluding the effects of foreign
currency exchange rate hedges and remeasurements in the
consolidated financial statements. Further, the Company reports DTC
comparable net sales on a constant currency basis for DTC
operations that were open throughout the current and prior
reporting periods, and may adjust prior reporting periods to
conform to current year accounting policies. These non-GAAP
financial measures are not intended to represent, and should not be
considered to be more meaningful measures than, or alternatives to,
measures of operating performance as determined in accordance with
GAAP. To the extent the Company utilizes such non-GAAP financial
measures in the future, it expects to calculate them using a
consistent method from period-to-period.
Conference Call Information
The Company's conference call to review the results for the
fourth quarter and full fiscal year 2024 will be broadcast live
today, Thursday, May 23, 2024, at 4:30
pm Eastern Time and hosted at ir.deckers.com. You can
access the broadcast by clicking on the link within the "Webcast"
box at the top of the page. A replay of the broadcast will be
available for at least 30 days following the conference call and
can be accessed under the "Quarterly Earnings" section of the
"Financials" tab at the aforementioned website.
About Deckers Brands
Deckers Brands is a global leader in designing, marketing, and
distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and
high-performance activities. The Company's portfolio of brands
includes UGG®, HOKA®, Teva®, Sanuk®, Koolaburra®, and AHNU®.
Deckers Brands products are sold in more than 50 countries and
territories through select department and specialty stores,
Company-owned and operated retail stores, and select online stores,
including Company-owned websites. Deckers Brands has over 50 years
of history building niche footwear brands into lifestyle market
leaders attracting millions of loyal consumers globally. For more
information, please visit www.deckers.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, which statements are
subject to considerable risks and uncertainties. Forward-looking
statements include all statements other than statements of
historical fact contained in this press release, including
statements regarding our projected financial results, including net
sales, gross margin, SG&A expenses, operating margin,
inventories, effective tax rate, and diluted earnings per share;
consumer confidence and discretionary spending; the strength of our
brands and demand for our products; our ability to drive future
growth and profitability; our ability to execute on our long-term
strategies and objectives; and our potential repurchase of shares.
We have attempted to identify forward-looking statements by using
words such as "anticipate," "believe," "estimate," "intend," "may,"
"plan," "predict," "project," "should," "will," or "would," and
similar expressions or the negative of these expressions.
Forward-looking statements represent our management's current
expectations and predictions about trends affecting our business
and industry and are based on information available as of the time
such statements are made. Although we do not make forward-looking
statements unless we believe we have a reasonable basis for doing
so, we cannot guarantee their accuracy or completeness.
Forward-looking statements involve numerous known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements predicted,
assumed or implied by the forward-looking statements. Some of the
risks and uncertainties that may cause our actual results to
materially differ from those expressed or implied by these
forward-looking statements are described in the section entitled
"Risk Factors" in our Annual Report on Form 10-K for the fiscal
year ended March 31, 2023, as well as
in our Quarterly Reports on Form 10-Q and other filings with the
Securities and Exchange Commission.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. Except as required by
applicable law or the listing rules of the New York Stock Exchange,
we expressly disclaim any intent or obligation to update any
forward-looking statements, or to update the reasons actual results
could differ materially from those expressed or implied by these
forward-looking statements, whether to conform such statements to
actual results or changes in our expectations, or as a result of
the availability of new information.
DECKERS OUTDOOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(dollar and share data
amounts in thousands, except per share data)
|
|
|
Three Months Ended
March 31,
|
|
Years Ended March
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net
sales
|
$
959,758
|
|
$
791,571
|
|
$
4,287,763
|
|
$
3,627,286
|
Cost of
sales
|
420,282
|
|
395,403
|
|
1,902,275
|
|
1,801,916
|
Gross
profit
|
539,476
|
|
396,168
|
|
2,385,488
|
|
1,825,370
|
Selling, general, and
administrative expenses
|
395,214
|
|
290,249
|
|
1,457,974
|
|
1,172,619
|
Income from
operations
|
144,262
|
|
105,919
|
|
927,514
|
|
652,751
|
Total other income,
net
|
(19,945)
|
|
(8,939)
|
|
(51,427)
|
|
(13,331)
|
Income before income
taxes
|
164,207
|
|
114,858
|
|
978,941
|
|
666,082
|
Income tax
expense
|
36,662
|
|
23,071
|
|
219,378
|
|
149,260
|
Net
income
|
127,545
|
|
91,787
|
|
759,563
|
|
516,822
|
Total other
comprehensive (loss) income, net of tax
|
(8,359)
|
|
1,241
|
|
(11,698)
|
|
(14,080)
|
Comprehensive
income
|
$
119,186
|
|
$
93,028
|
|
$
747,865
|
|
$
502,742
|
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
|
Basic
|
$
4.98
|
|
$
3.49
|
|
$
29.36
|
|
$
19.50
|
Diluted
|
$
4.95
|
|
$
3.46
|
|
$
29.16
|
|
$
19.37
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
25,623
|
|
26,302
|
|
25,871
|
|
26,504
|
Diluted
|
25,785
|
|
26,493
|
|
26,048
|
|
26,686
|
DECKERS OUTDOOR
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(dollar amounts in
thousands)
|
|
|
March 31,
2024
|
|
March 31,
2023
|
ASSETS
|
|
|
(AUDITED)
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,502,051
|
|
$
981,795
|
Trade accounts
receivable, net
|
296,565
|
|
301,511
|
Inventories
|
474,311
|
|
532,852
|
Other current
assets
|
170,556
|
|
94,095
|
Total current
assets
|
2,443,483
|
|
1,910,253
|
Property and equipment,
net
|
302,122
|
|
266,679
|
Operating lease
assets
|
225,669
|
|
213,302
|
Other noncurrent
assets
|
164,305
|
|
165,969
|
Total
assets
|
$
3,135,579
|
|
$
2,556,203
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
$
378,503
|
|
$
265,605
|
Operating lease
liabilities
|
53,581
|
|
50,765
|
Other current
liabilities
|
287,909
|
|
181,010
|
Total current
liabilities
|
719,993
|
|
497,380
|
Long-term operating
lease liabilities
|
213,298
|
|
195,723
|
Other long-term
liabilities
|
94,820
|
|
97,367
|
Total long-term
liabilities
|
308,118
|
|
293,090
|
Total stockholders'
equity
|
2,107,468
|
|
1,765,733
|
Total liabilities
and stockholders' equity
|
$
3,135,579
|
|
$
2,556,203
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/deckers-brands-reports-fourth-quarter-and-full-fiscal-year-2024-financial-results-302154639.html
SOURCE Deckers Brands