Ugg owner Deckers Brands has increased its outlook for the year despite seeing sales edge down over the second quarter.
Deckers’ net sales dipped 0.7 per cent to £368.63 million, and 0.3 per cent on a constant currency basis.
Operating income jumped 24 per cent to £281.63 million. Gross margins rose to 46.7 per cent from 44.5 per cent last year.
Its largest brand Ugg saw sales dip 2.9 per cent to £305 million, while its Sanuk brand saw sales dive 19.3 per cent to £11.61 million.
Other brands Teva and Hoka One One performed much more positively, seeing a 24.9 per cent rise to £16.35 million and 34.4 per cent rise to £31.02 million respectively.
“Our goal remains to achieve an incremental 100 million dollars of operating profit by the end of our fiscal year 2020, and operating margins of at least 13 percent by focusing on full-priced selling, reducing indirect spend, and closing retail stores that do not meet our financial objectives,” chief executive Dave Powers stated.
“In light of our strong results and our confidence in the back half of the fiscal year, we are increasing our outlook for the year. We intend to aggressively repurchase our shares to reward our long-term shareholders with accelerated EPS growth.”
Deckers now expects net sales to be up one to two per cent on last year, while gross margins are expected to be 47.5 per cent.
Click here to sign up to Retail Gazette‘s free daily email newsletter
