Deckers Brands, the renowned American footwear giant best known for its iconic Ugg brand, has reported impressive sales growth in the first quarter of fiscal year 2021 despite the challenges brought about by the Covid-19 pandemic. The company announced a 2.3% increase in sales, totaling $282.2 million, compared to $276.8 million in the same period last year.
An outstanding aspect of the latest report was the remarkable decrease in the company’s net loss, which plummeted to $7.6 million from $31.4 million in the previous year. Dave Powers, the president and CEO of Deckers Brands, credited this robust performance to the strength of the company’s brands, the resilience of its e-commerce platform, and the dedication of its workforce.
Furthermore, gross profit in Q1 FY21 saw a significant boost to $142.5 million from $130 million. Operating losses were also notably reduced to $7.6 million, down from $31.4 million, with selling, general, and administrative expenses totaling $150.3 million.
In terms of brand performance, the UGG brand saw a slight decline in sales by 10.0% to $124.7 million, while the Hoka One One brand experienced a substantial sales increase of 37.1% to $109 million. Teva brand sales decreased by 7.9% to $35.2 million, and Sanuk brand sales slipped by 29.2% to $13.2 million.
The company’s direct-to-customer sales witnessed remarkable growth of 74.2% to $139.8 million, while wholesale sales decreased by 27.1% to $143.3 million in the same period. Despite the positive start to fiscal year 2021, Deckers Brands remains cautious about the potential impact of the ongoing pandemic on its operations. Powers emphasized the need to brace for challenges that may arise depending on the duration and severity of economic effects, while expressing confidence in the company’s resilience.
With its diverse portfolio of brands, advanced omnichannel capabilities, and strong financial foundation, Deckers Brands is well-equipped to navigate the current turbulent business landscape and emerge stronger in the long run. As the company continues to adapt to dynamic market conditions, its primary focus remains on leveraging its strengths to drive growth and success going forward.
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