Sector: Consumer Discretionary|Industry: Footwear & Accessories|Market Cap: $30.61B|Employees: 4.8K
Deckers Outdoor Corporation is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories for both everyday casual lifestyle and high-performance activities. The company's core business model revolves around its six proprietary brands, including UGG, HOKA, and Teva, which compete across various markets. Deckers sells its products through quality domestic and international retailers, international distributors, and directly to consumers through its DTC business, with a strong geographic presence in the US, Canada, Europe, Asia-Pacific, and Latin America.
Net sales for the nine months ended December 31, 2023, reached $3,328.0 million, a 17.4% increase compared to $2,835.7 million in the prior year. This growth was fueled by a 10.3% increase in wholesale channel sales and a 28.2% increase in DTC channel sales, indicating strong performance across multiple distribution channels.
Gross margin increased to 55.5% from 50.4% in the prior year, a 510 basis point improvement. This was primarily due to favorable full-price selling for the UGG brand, a decrease in freight costs, favorable UGG brand product mix shifts, benefits from selective price increases, and a greater mix of sales in the DTC channel.
Selling, general, and administrative (SG&A) expenses increased, impacting overall profitability. While gross profit increased, the rise in SG&A expenses partially offset these gains, indicating a need for continued focus on cost management and operational efficiency.