Deckers Brands Reports First Quarter Fiscal 2016 Financial Results

Deckers Brands (NYSE: DECK), a global leader in designing, marketing and distributing innovative footwear, apparel and accessories, today announced financial results for the first quarter of fiscal 2016 which ended June 30, 2015.

Net sales increased 4.5% to $221 million on a constant currency basis compared to $211.5 million for the same period last year. On a reported basis, net sales increased 1.1%. Gross margin was 40.5% compared to 41.0% for the same period last year. SG&A expense as a percentage of sales was 70.3% compared to 64.9% for the same period last year. Diluted loss per share was $(1.43) compared to a diluted loss per share of $(1.07) for the same period last year.

«Our efforts to diversify our product lines, distribution channels and global revenue streams are creating a stronger foundation to support sustainable growth,» commented Angel Martinez, Chief Executive Officer and Chair of the Board of Directors. «At the same time, our enhanced Omni-channel capabilities are giving us greater insight into our consumers and are allowing us to deliver a full brand experiences across all touch points. Looking ahead, we believe our merchandise and marketing strategies have us well positioned for a successful fall/winter selling season, which combined with moderating expense growth and share repurchases, should generate increased value for our shareholders this year and beyond.»

UGG® brand net sales for the first quarter decreased 7.2% to $114.5 million compared to $123.3 millionfor the same period last year, which was in line with expectations for the quarter. On a constant currency basis, sales decreased approximately 3.0%. The decrease in sales was driven by foreign currency pressure that caused a decrease in international distributor sales and a decrease in global Direct-to-Consumer sales primarily due to lower tourist traffic, partially offset by an increase in global wholesale sales.

Teva® brand net sales for the first quarter increased 6.8% to $41.9 million compared to $39.3 million for the same period last year.  On a constant currency basis, sales increased approximately 12.0%. The increase in sales was driven by an increase in global wholesale and distributor sales and global Direct-to-Consumer sales.

Sanuk® brand net sales for the first quarter decreased 7.0% to $33.5 million compared to $36.0 million for the same period last year on both a reported and constant currency basis. The decrease in sales was driven by a decrease in global wholesale and distributor sales, partially offset by an increase in global Direct-to-Consumer sales.

Combined net sales of the Company’s other brands increased 85.6% to $23.9 million compared to $12.9 million for the same period last year. The increase was primarily attributable to a $9.8 million increase in sales for the HOKA ONE ONE® brand compared to the same period last year.