Business

Deckers Sells $2 Billion in Ugg Boots in Record Year, Shares Soar 12%

Decker’s Outdoor Corp. ended a record year with Ugg boot sales of around $2 billion, leading the company to a profit hit and a soaring share price on Thursday.

Decker’s DECK,
-0.22%,
which owns Ugg and other footwear brands like Teva, reported that earnings more than doubled in the fourth quarter, to $63 million, or $2.51 per share, from $1.18 a year earlier. Net sales increased to $736 million from $561.2 million in the prior year. That performance topped analyst estimates, which called for earnings of $1.30 per share on sales of $639.5 million, according to FactSet.

Deckers’ shares rose more than 13% in after-hours trading after the earnings release.

Ugg boots were the focus of outperformance as sales rose 24.7% for the quarter and 15.4% for the full year. The company sold the boots for $374.6 million in the fourth quarter, while analysts had been expecting $298.8 million. For the full fiscal year, Decker’s boots sold about $2 billion — $1.982 billion, to be exact — which accounted for nearly two-thirds of its record $3.15 billion sales, the first year in which the company eclipsed $3 billion in sales.

Deckers’ next-biggest offering was Hoka athletic shoes, which posted annual sales of $891.6 million, up 56.1% year over year. Hoka sales also beat expectations in the fiscal fourth quarter, reaching $283.5 million, compared to a median forecast of $266 million by analysts.

“Fiscal 2022 was another record year for Deckers as we delivered over 20 percent growth in both revenue and earnings per share,” Chief Executive Dave Powers said in a statement. “Over the past two years, our portfolio of brands has added more than $1 billion in revenue while making strides toward key long-term strategies and maintaining a best-in-class level of profitability, despite unprecedented disruptions in the global supply chain. ”

Deckers executives expect growth to continue in the current fiscal year. They forecast fiscal 2023 earnings of $17.40 to $18.25 per share on net sales of $3.45 to $3.5 billion. According to FactSet, analysts on average expected tax earnings of $18.07 per share on net sales of $3.45 billion going to press.

Deckers stock is down 38.1% so far this year, as is the S&P 500 Index SPX,
-0.58%
has decreased by 17.7%.

https://www.marketwatch.com/story/deckers-sold-2-billion-worth-of-ugg-boots-in-record-year-stock-jumps-12-11652994529?rss=1&siteid=rss Deckers Sells $2 Billion in Ugg Boots in Record Year, Shares Soar 12%

Brian Lowry

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