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Home News US' Deckers Brands reports 17.1% sales growth in Q3 FY25 to $1.83 bn

US' Deckers Brands reports 17.1% sales growth in Q3 FY25 to $1.83 bn

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US' Deckers Brands reports 17.1% sales growth in Q3 FY25 to $1.83 bn

Deckers Brands, a US-based footwear designer company, has reported net sales of $1.83 billion in the third quarter (Q3) of fiscal 2025 (FY25) ended December 31, 2024, an increase of 17.1 per cent year-over-year (YoY). On a constant currency basis, net sales increased by 16.6 per cent. The cost of sales rose to $724.54 million from $643.74 million in Q3 FY24, resulting in a gross profit of $1.10 billion compared to $916.57 million in Q3 FY24.

The company reported income before income taxes of $583.94 million, with an income tax expense of $127.21 million, leading to a net income of $456.73 million, compared to $389.92 million in Q3 FY24.

Consequently, income from operations increased to $567.27 million, up from $487.90 million. The total other income, net, amounted to a loss of $16.67 million, compared to a loss of $11.15 million in Q3 FY24.

Distribution channel-wise, direct-to-consumer (DTC) net sales increased by 17.9 per cent to $1.011 billion compared to $858.1 million in Q3 FY24. DTC comparable net sales increased 18.3 per cent. Meanwhile, wholesale net sales increased 16.2 per cent to $815.8 million compared to $702.2 million.

Brand-wise, the net sales of UGG increased 16.1 per cent YoY to $1.244 billion. Hoka’s net sales increased 23.7 per cent YoY to $530.9 million. Teva’s net sales decreased by 6.0 per cent YoY to $24.1 million. Other brands net sales decreased 16.6 per cent YoY to $28.0 million.

The gross margin of the company was 60.3 per cent compared to 58.7 per cent. Selling, general, and administrative (SG&A) expenses were $535.3 million compared to $428.7 million, and the operating income was $567.3 million compared to $487.9 million.

Region-wise, the domestic net sales increased by 11.5 per cent YoY to $1.169 billion, and international net sales increased 28.5 per cent YoY to $657.9 million. Earnings per share stood at $3.01 basic and $3.00 diluted, compared to $2.53 basic and $2.52 diluted in Q3 FY24.

Nine-month (9M) financials

For the nine months ended December 31, 2024, the net sales of the company reached $3.96 billion, an increase from $3.33 billion in the same period of FY24. Cost of sales amounted to $1.66 billion, up from $1.48 billion, leading to a gross profit of $2.31 billion compared to $1.85 billion in the prior fiscal.

SG&A expenses stood at $1.30 billion, rising from $1.06 billion in the corresponding period of FY24. As a result, income from operations increased to $1.01 billion, compared to $783.25 million in the previous fiscal. Total other income, net, recorded a loss of $46.84 million, compared to a loss of $31.48 million in FY24.

The income before income taxes was $1.05 billion, with an income tax expense of $237.33 million, resulting in a net income of $814.68 million, up from $632.02 million in FY24. The earnings per share for the period stood at $5.35 basic and $5.33 diluted, compared to $4.06 basic and $4.03 diluted in FY24.

Outlook

For the full fiscal 2025 ending March 31, 2025, Deckers Brands expects net sales to increase approximately 15 per cent to $4.9 billion. It also expects the gross margin to be or slightly better than 57 per cent. SG&A expenses as a percentage of net sales are still expected to be approximately 35 per cent. Operating margin is now expected to be 22 per cent, and the effective tax rate to be approximately 23.5 per cent. The diluted earnings per share is now expected to be in the range of $5.75 to $5.80.

Fibre2Fashion News Desk (SG)