UGG Brand Revenue Growth Stagnation Deckers Group Profit Fell In The Two Quarter

Its own Teva, Sanuk, UGG and many other outdoors. Leisure brand Deckers Outdoor recently announced its second quarter earnings. Its total revenue rose 5.4% to $506 million 200 thousand, up from analysts' expected $487 million. In addition, group profit fell 3% to 36 million 300 thousand dollars, earnings per share of 1.12 dollars, but still higher than the previous investors unanimously forecast $0.06, affected by this news, the group's share price rose more than 10%.

Some analysts say that Deckers and its brand Ugg, like Crocs, are in a developmental bottleneck. Their position in the fashion industry is beginning to diminished and is regarded as an outdated product.

By brand, the company's brand Ugg continues to promote the entire business, accounting for almost 85% of the company's total revenue. Ugg's second quarter sales increased by only 0.9%, and domestic wholesale sales rose. This is the main contributor to the overall revenue of the sector. The decline in US border tourism has led to a decline in global direct sales of consumers due to the strong US dollar.

Deckers's other major brands are even worse. Teva brand sales fell nearly 14%, and global wholesale and distribution sales also declined sharply. Sanuk brand revenue fell 9%, even with global direct. Sales volume The continuous rise will not offset the sharp drop in wholesale sales worldwide. Hoka One One brand is the only outstanding brand, which promotes sales of other brands of Deckers group by 30%.

According to the channel, most of Deckers's revenue comes from its wholesale and distribution channels, which rose by 1.2%. The direct sales channel increased slightly by 2.1%, compared with the same period last year, comparable sales fell by 5.2%.

By region, US sales increased by 4%, and by 10% of exchange rate pressure, overseas sales fell 3%.

Angel Martinez, chief executive, was pleased with Deckers's positive performance. He said: "in the past few years, if not in key business areas, strategic investment It is impossible to succeed. " He also pointed out that its product innovation and channel development work will help build momentum and even be effective in some difficult times of the company.

Founded in 1973, Deckers Brands currently owns many brands, such as UGG, I Heart, Teva, Sanuk, Tsubo, Ahnu, Mozo, Hoka, and so on. Its products are distributed in more than 50 countries and regions, with 126 direct shops and online shopping centers.