Shares of Deckers Brands, the Goleta-based parent company of Ugg and other footwear brands, jumped 7% on May 20 following the announcement of its fourth quarter and full-year 2020 financial results, which included big jumps in both revenue and net income.
Net sales increased 19.4% from 2019 to 2020, to $2.5 billion, the most in a single year for the company. Net income rose 38.5% to $382.5 million in 2020 as earnings per share were up 39.9% to $13.47, another company milestone.
Shares of Deckers closed at $311.22 on May 20, but once the earnings report was released, shares climbed 7% to $333.
In the fourth quarter of 2020, Deckers had $561.2 million in sales, a 49.7% jump from the same quarter a year earlier.
Net income jumped to $33 million, compared to $16 million during the same period the previous year. Earnings per share were up to $1.18, compared to 57 cents.
Powers noted the impressive strength behind the brands Hoka One One, a running shoe, and Ugg boot and shoe, its premier brand.
Hoka One One saw a 62% rise in net sales in fiscal year 2020, with revenue jumping to $571.2 million.
In the fourth quarter, Hoka One One generated $177.5 million, a 74.1% rise from the same period a year ago.
Deckers’ biggest brand, Ugg, generated $1.7 billion in sales for the fiscal year, up 12.9% from 2019. Ugg sales in the fourth quarter of 2020 were $300.5 million in the fourth quarter of 2020, up 53% from the same quarter in 2019.
The Hoka One One running shoe brand had $571.2 million in sales for the year, up 62% from 2019. In a conference call discussing the earnings report, Deckers CEO Dave Powers said the company wants to build Hoka One One into another $1 billion-per-year brand.
“By continuing to be aggressive with Hoka globally and capturing the opportunity with Ugg, we were able to exceed expectations in a challenging environment, and have accelerated the pace of growth for our brands,” Powers said.
Direct-to-consumer sales rose 44.8% to $1.1 billion in fiscal year 2020, in large part due to the COVID-19 pandemic, which closed a number of Deckers’ retail locations and pushed more sales online. Wholesale sales increased 6% to $1.4 billion during the year.
Domestic net sales increased 25.7% to $1.7 billion in 2020 while international sales increased 7.3% to $784.2 million.
Approximately 77% of Deckers global retail stores were open for the entire fourth quarter, but rising COVID-19 cases in certain parts of the world could change those circumstances moving forward.
Deckers ended the fiscal year with cash and cash equivalents worth $1 billion compared to $649.4 million at the end of the prior fiscal year.