Deckers Brands, a global leader in designing, marketing and distributing innovative footwear, apparel and accessories, has recorded net sales of $810.5 million compared to $760.3 million for the same period last year, up 6.6 per cent. The company’s gross margin was 52.2 per cent compared to 50.5 per cent for the same period in the last year.
For the reported period, the operating income was $193.2 million compared to $53.3 million for the same period last year. Non-GAAP operating income was $203.1 million this year compared to $182.2 million last year.
During the third quarter the company repurchased approximately 361,000 shares of its common stock for a total of $24.7 million. As of December 31, 2017, the company had $375.6 million remaining under its $400.0 million in stock repurchase authorisations. The company still intends to repurchase approximately $75 million worth of stock prior to the end of fiscal year 2018.
“Our third quarter results, which meaningfully exceeded expectations, underscore the progress we have made developing a stronger foundation to support profitable growth,” said Dave Powers, president and chief executive officer. “Our refined product strategies, enhanced consumer messaging and wholesale account optimisation efforts resulted in much stronger full price selling for our brand portfolio during the key holiday season. While more favorable weather also contributed to our year-over-year improvement, hard work by the entire organization enabled us to capitalise on additional upside opportunities. Looking ahead, I am confident that the successful execution of our profit improvement plan, combined with the recently passed tax reform, has Deckers in a great position to deliver increased value to our shareholders in the years ahead.”
Diluted earnings per share were $2.69 compared to $1.27 for the same period last year. Non-GAAP diluted earnings per share were $4.97 this year compared to $4.11 last year. For this year, non-GAAP diluted earnings per share were largely affected by the recently enacted tax reform act.
For the fourth quarter of fiscal 2018, net sales are expected to be in the range of $370-$375 million. While for 2018, the sales are likely to be between $1,873 million-$1,878 million and the gross margin is expected to be approximately 49 per cent.