Deckers shares rose 12% after hours trading after the company reported strong results for its fourth quarter and full year.
The shoe conglomerate – which also owns Hoka, Ugg and Teva – said net sales in the fourth quarter increased by 31.2% to $736 million. Sales were led by the Ugg brand, which saw net sales rise 24.7% to $374.6 million. Net income was $68.8 million and diluted earnings per share were $2.51.
For fiscal 2022, Deckers reported that net sales increased 23.8% to $3.15 billion, in addition to 19.4% growth last year. Diluted earnings per share were $16.26. for the full year, Ugg’s net sales increased 15.4% from 2021 to $1.982 billion.
“Fiscal 2022 was another banner year for Deckers as we delivered revenue and earnings per share growth of over twenty percent,” said Dave Powers, President and Chief Executive Officer of Deckers. “Over the past two years, our portfolio of brands has generated over $1 billion in revenue, while advancing key long-term strategies and maintaining high levels of profitability, despite unprecedented disruption. in the global supply chain. I’m incredibly proud of our performance over the past two years, but with the power of our brands and people, I’m even more excited about the opportunities ahead.
Like other footwear brands with an international presence and network, Deckers has also encountered issues in its global supply chain. Specifically, the CFO Steve Fasching said Deckers had lived “significant additional costs related to supply chain disruption. Deckers also noted the presence of supply chain issues in the last quarter as well, including delays in its supply network.
Deckers said it considered these challenges when setting its guidance for fiscal 2023. Decker expects net sales of between $3.45 billion and $3.50 billion and diluted earnings per share of between $17.40 and $18.25.
In a note to investors ahead of the company’s earnings release, Williams Trading analyst Sam Poser said Deckers was “the best-positioned brand” in its coverage, citing strong demand. He also noted the strong position of the Ugg brand, which relies on recent quarters for the bulk of its sales.
“Ugg won’t be facing the delays that others are experiencing right now, as the most important delivery periods are the September and December quarters,” Poser said.