NYSE$DECK

Deckers Outdoor Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Deckers reported an increase in revenue and earnings per share for the second quarter of fiscal year 2022, driven by strong performance from the HOKA and UGG brands, while navigating global supply chain challenges.

Deckers Brands reported a 15.8% increase in revenue to $721.9 million for the second quarter of fiscal year 2022. Diluted earnings per share increased to $3.66 compared to $3.58 for the same period last year. The company maintained its fiscal year 2022 revenue outlook and updated its earnings per share outlook to a range of $14.15 to $15.15.

  • Second Quarter Fiscal 2022 Revenue Increased 15.8% to $721.9 Million
  • UGG brand net sales increased 8.0% to $448.4 million.
  • HOKA brand net sales increased 47.0% to $210.4 million.
  • Fiscal Year 2022 Earnings Per Share Outlook Updated to Range of $14.15 to $15.15

Headline financials

Total Revenue

$722M

Previous: $624M+15.8%
EPS (adj)

$0.61

Previous: $0.60+1.7%
Gross margin

50.9%

Previous: 51.2%-0.6%
Capital Expenditures

-$26.7M

Previous: -$13.3M-100.4%
Free Cash Flow

$75.3M

Previous: $88.2M-14.6%
Net Income

$102M

Previous: $102M+0.5%
Operating Income

$128M

Previous: $129M-0.3%
Gross Profit

$367M

Previous: $319M+15.1%
Cash & Equivalents

$746M

Previous: $626M+19.1%
Total Assets

$2.41B

Previous: $2.05B+17.6%
Stock-Based Comp

$6.23M

Previous: $3.95M+57.9%

Revenue & EPS history

Deckers · Revenue · Quarterly

$722M

Q2 2022+15.8%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Deckers · $2.24B total across 5 segments · Q4 2027

  • HOKA
    $671M
  • Wholesale
    $655M
  • Direct-to-Consumer
    $464M
  • UGG
    $409M
  • Other brands
    $39.5M

Forward guidance

Deckers Brands expects net sales to be in the range of $3.01 billion to $3.06 billion, gross margin to be approximately 51.5%, and diluted earnings per share to be in the range of $14.15 to $15.15 for the full fiscal year 2022.

Tailwinds

  • Net sales are still expected to be in the range of $3.01 billion to $3.06 billion.
  • Gross margin is now expected to be approximately 51.5%.
  • Operating margin is now expected to be in the range of 17.0% to 18.0%.
  • Effective tax rate is still expected to be approximately 23.0%.
  • Diluted earnings per share is now expected to be in the range of $14.15 to $15.15.

Headwinds

  • The Company experienced delays and disruption within its sourcing network related to the COVID-19 pandemic.
  • The most significant macro-level supply chain impacts the Company has experienced are extended transit lead times and cost pressures related to container shortages, port congestion, and trucking scarcity that have caused shipping delays and a higher usage of air freight.
  • The full effect and duration of disruptions and delays are not yet known, but the Company will continue to monitor the situation closely and is actively working to navigate these pressures.
  • Certain facilities are experiencing operational challenges that may cause further delays and cost pressures in future periods.
  • The Company's wholesale partners and third-party logistics providers are also experiencing capacity constraints and labor shortages, which are having and may continue to have an adverse effect on the Company's operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.7%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+5.4%

Avg return

30 days after

54%

38 / 71 earnings

Positive

+21.1%

Q3 2013

Best reaction

-23.3%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2027+2.5%+9.7%+4.8%
Q3 2026+6.7%+12.4%+17.4%
Q2 2026-15.2%-18.2%-17.0%
Q1 2026+11.3%+5.4%+4.0%
Q4 2025-19.9%-17.3%-19.4%
Q3 2025-20.5%-22.7%-37.5%
Q2 2025+11.4%+12.3%+27.3%
Q1 2025+5.8%+7.7%+15.2%
Q4 2024+15.7%+20.9%+9.8%
Q3 2024+17.0%+9.5%+19.8%
Q2 2024+17.0%+21.3%+29.4%
Q1 2024-4.3%-2.8%-6.5%
Q4 2023+5.6%+11.1%+14.9%
Q3 2023-3.3%-2.5%+0.0%
Q2 2023-4.4%+0.4%+5.5%
Q1 2023+11.3%+9.3%+16.7%
Q4 2022+12.3%+6.0%+10.1%
Q3 2022-8.1%-9.2%-25.7%
Q2 2022+5.1%+5.1%+10.2%
Q1 2022+1.6%+6.4%+4.7%
Q4 2021+3.9%+3.8%+0.7%
Q3 2021+2.3%+5.1%+2.2%
Q2 2021+1.3%+0.6%+4.0%
Q1 2021-4.4%-6.1%-3.9%
Q4 2020+10.3%+10.8%+20.6%
Q3 2020+8.1%+7.4%-1.6%
Q2 2020-2.2%-2.9%+3.4%
Q1 2020-10.9%-13.1%-23.9%
Q4 2019+2.2%+0.5%+16.9%
Q3 2019+11.6%+9.6%+16.3%
Q2 2019+8.4%+20.9%+15.1%
Q1 2019-6.4%-4.9%-0.5%
Q4 2018+4.4%+4.5%+15.9%
Q3 2018+9.2%+10.8%+11.9%
Q2 2018+5.5%-0.6%+7.6%
Q1 2018+2.6%+3.1%-0.4%
Q4 2017+15.7%+16.9%+16.0%
Q3 2017-18.0%-20.9%-3.7%
Q2 2017+5.2%-1.0%+23.6%
Q1 2017+3.6%-2.0%+5.1%
Q4 2016+8.7%+7.4%+14.2%
Q3 2016-4.6%
Q2 2016+6.7%
Q1 2016+4.9%
Q4 2015-4.8%
Q3 2015-18.9%
Q3 2014-2.7%
Q2 2015-9.6%
Q2 2014-0.2%
Q1 2015+6.5%
Q4 2014+5.6%
Q1 2014+2.7%
Q4 2013-9.7%
Q3 2013+21.1%
Q2 2013-7.5%
Q1 2013-8.1%
Q4 2012+15.5%
Q3 2012-20.7%
Q2 2012+9.7%
Q1 2012-23.3%
Q4 2011+4.0%
Q3 2011-8.3%
Q2 2011-6.2%
Q1 2010-0.1%
Q1 2011-0.1%
Q4 2008-4.1%
Q3 2009-1.5%
Q3 2010-1.5%
Q4 2009-1.9%
Q2 2009-1.9%
Q2 2010-1.9%

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