Deckers Outdoor Corporation (NYSE:DECK) reports Q2 22 earnings ahead of expectations while revenue came in below consensus estimates. Revenue rose 15.8%, driven by domestic net sales growth of 20.4%. International sales rose 5.7%.
By brand: UGG sales increased 8.0%, HOKA up 47.0%, Teva up 4.0%, Sanuk up 6.2%, and other brands including Koolaburra fell 14.1%.
Supply chain update: Deckers did experience delays and disruption due to supply chain issues during the quarter but was able to mitigate the majority of challenges due to low exposure of factories located in Southern Vietnam and the company's dual sourcing capabilities enabling production shifts to alternate locations. The most significant macro-level supply chain impacts the shoe manufacturer has experienced are extended transit lead times and cost pressures related to container shortages, port congestion, and trucking scarcity that have caused shipping delays and a higher usage of air freight.
FY 22 Outlook: The company is maintaining its guidance of 18 to 20% revenue growth for the rest of its fiscal year vs consensus of 12.8%. The company widened its FY EPS range to $14.15-$15.15 from $14.45-$15.10 and consensus of $15.20.