Deckers beats expectations with rising sales, shrinking losses in second quarter
Goleta-based Deckers Brands, the parent company of Ugg and Teva, saw its net sales increase in the second quarter as the footwear company continued to beat expectations and trim expenses.
Sales increased 2.3 percent, to $283.2 million, compared to $276.8 million at the same point in 2019. The company still took a loss, but the basic loss per share was 28 cents, outpacing expectations. Zacks Research’s consensus estimate predicted the company would see a loss of $1.11 per share, and in the second quarter of the year before, Deckers posted a basic loss of 67 cents per share.
Increased sales helped the company get there, but Deckers also trimmed spending. Selling, general and administrative expenses were $150.3 million, compared to $161.4 million in the second quarter of 2019. Deckers also has more cash on hand than it did last year, at $661.9 million compared to $502.6 million.
“(Our) first quarter performance was a testament to the resilience of our brands, the strength of our ecommerce platform, and the hard work of our employees,” Deckers President and CEO Dave Powers said in a company news release. “While we are encouraged by the positive start to fiscal year 2021, we expect further challenges related to the COVID-19 pandemic, depending on the duration and severity of economic effects.”