Deckers Group'S Two Quarter Profits Fell Many Brands Poor Performance

Its owns Teva, Sanuk,

Deckers Outdoor, such as many outdoor and leisure brands, recently announced its second quarter earnings. The group's total revenue rose 5.4% to 506 million 200 thousand US dollars, higher than analysts expected 487 million dollars before.

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 Their position in the fashion industry is beginning to diminished and is regarded as an outdated product.

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%.

Chief executive officer

Pleased with the positive performance of Deckers, he said: "in the past few years, if we did not make strategic investments in key business areas, it would not be possible."

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.

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.

Brand sales fell nearly 14%, and global wholesale and distribution sales also declined sharply.

Sanuk's brand revenue has fallen by 9%. Even with the increase in global direct sales, it is impossible to offset a 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%.

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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.