'Fiscal year 2020 performance was driven by the strength of our brand portfolio, fueled by targeted investments in our key initiatives, coupled with disciplined financial management,' said
Throughout this release, references to Non-GAAP financial measures from the prior year exclude the impact of certain charges relating to restructuring costs, organizational changes, legal matters and other one-time or non-recurring amounts. Although the Company is not reporting any Non-GAAP financial measures for the current period, a reconciliation between its reported GAAP measures and its Non-GAAP financial measures for the fourth fiscal quarter and fiscal year ended
Fourth Quarter Fiscal 2020 Financial Review
Net sales decreased 4.9% to
Gross margin was 51.5% compared to 51.6% for the same period last year.
SG&A expenses were
Operating income was
Income tax expense was
Diluted earnings per share was
Full Year Fiscal 2020 Financial Review
Net sales increased 5.6% to
Gross margin was 51.8% compared to 51.5% for the same period last year.
SG&A expenses were
Operating income was
Income tax expense was
Diluted earnings per share was
Brand Summary
UGG brand net sales for the fourth quarter decreased 17.9% to
HOKA ONE ONE brand net sales for the fourth quarter increased 51.8% to
Teva brand net sales for the fourth quarter increased 12.5% to
Sanuk brand net sales for the fourth quarter decreased 57.8% to
Channel Summary (included in the brand sales numbers above)
Wholesale net sales for the fourth quarter decreased 2.9% to
DTC net sales for the fourth quarter decreased 7.9% to
Geographic Summary (included in the brand and channel sales numbers above)
Domestic net sales for the fourth quarter decreased 8.4% to
International net sales for the fourth quarter increased 1.4% to
Balance Sheet (
Cash and cash equivalents were
Inventories were
Outstanding borrowings were
Stock Repurchase Program
During the fourth quarter, the Company did not repurchase any shares of its common stock. As of
Financial Outlook
Given the ongoing and fluid economic environment related to the COVID-19 pandemic, the Company will not be providing full year guidance for fiscal year 2021.
COVID-19 Update
The Company continues to modify and evolve its operations in response to the COVID-19 pandemic. The Company will continue to review expert agency guidelines, as well as information from health officials and local authorities, while assessing the appropriate scope of operations and allocation of resources necessary to navigate this dynamic and unprecedented environment.
Company Liquidity
As of
As of fiscal year end, the Company did not have any outstanding borrowings under any of its existing revolving credit facilities.
Retail Stores
On
Supply Chain
The Company's distribution center in
The Company maintains a network of strategic sourcing partners which includes material vendors and production factories. The Company experienced certain disruptions to sourcing with its third-party manufacturers during the fourth quarter of fiscal year 2020. While these disruptions have since been mitigated, it is possible that there will be disruptions in the future.
Operating Expense Plans
To mitigate the adverse impact the COVID-19 pandemic may have on its business and operations, the Company has reduced planned levels of operating expense for the upcoming fiscal year and has implemented a number of temporary measures to reduce operating expense, including restricting employee travel, suspending hiring of certain non-essential employees, suspending annual salary increases, canceling or postponing certain events, converting in-person meetings to virtual platforms, eliminating or deferring other discretionary expenditures, and in certain cases seeking payment accommodations or deferrals.
Non-GAAP Financial Measures
The Company presents certain Non-GAAP financial measures for the prior year in this press release, including constant currency, Non-GAAP SG&A expenses, Non-GAAP operating income (loss), Non-GAAP income tax expense (benefit) and Non-GAAP diluted earnings (basic loss) per share, to provide information that may assist investors in understanding its financial results and assessing its prospects for future performance.
The Company believes these Non-GAAP financial measures are important indicators of its operating performance because they exclude items that are unrelated to, and may not be indicative of, its core operating results, such as charges relating to restructuring costs, organizational changes, legal matters and other one-time or non-recurring amounts. In particular, the Company believes the exclusion of certain costs and one-time amounts allows for a more meaningful comparison of results from period to period. Further, the Company reports comparable DTC sales on a constant currency basis for DTC operations that were open throughout the current and prior reporting periods, and may adjust prior reporting periods to conform to current year accounting policies.
These Non-GAAP financial measures may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to Deckers. For example, in order to calculate constant currency information, the Company calculates the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and re-measurements in the condensed consolidated balance sheets. These Non-GAAP financial measures are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company utilizes such Non-GAAP financial measures in the future, it expects to calculate them using a consistent method from period to period. A reconciliation of each of the GAAP financial measures to the most directly comparable Non-GAAP financial measures has been provided under the heading 'Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures' in the financial statement tables attached to this press release.
Conference Call Information
The Company's conference call to review the results for the fourth quarter and fiscal year 2020 will be broadcast live today,
About Deckers Brands
Deckers Brands is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company's portfolio of brands includes UGG, Koolaburra, HOKA ONE ONE, Teva, and Sanuk. Deckers Brands products are sold in more than 50 countries and territories through select department and specialty stores, Company-owned and operated retail stores, and select online stores, including Company-owned websites. Deckers Brands has over 40 years of history building niche footwear brands into lifestyle market leaders attracting millions of loyal consumers globally. For more information, please visit www.deckers.com.
Forward-Looking Statements
This press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the
Forward-looking statements represent our management's current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law or the listing rules of the
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME: See details at:
ir.deckers.com/file/Index?KeyFile=404093466
SOURCE Deckers Brand
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